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| + | ====== Builder Not Forming the Society: Your First Five Actions ====== | ||
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| + | <WRAP center round info 95%> | ||
| + | **Quick Reply:** Builder refusing to form your housing society or association? | ||
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| + | **Reviewed on:** 2026-06-12. | ||
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| + | Do these five things before anything else: | ||
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| + | - **Count the booked flats.** The builder' | ||
| + | - **Check the project' | ||
| + | - **Send one written demand** to the builder, signed by a group of buyers, asking him to start society or association formation within a stated period. Email plus registered post, keep proof. | ||
| + | - **Form a provisional committee** of seven to ten willing buyers. Every state route, registrar or RERA, works better with an organised group than with one angry buyer. | ||
| + | - **Identify your state law.** Cooperative society, apartment owners' | ||
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| + | This guide covers only formation of the society or association. Once the body is registered, the next fight is title transfer, covered in [[practical-guides: | ||
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| + | ===== The builder' | ||
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| + | Section 11(4)(e) of the RERA Act, 2016 makes the promoter responsible for enabling the formation of an association, | ||
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| + | State laws add their own timelines: | ||
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| + | * **Maharashtra: | ||
| + | * **Karnataka: | ||
| + | * **Uttar Pradesh:** the UP Apartment Act, 2010 requires an association of apartment owners, and the promoter must hand over management once it is formed. | ||
| + | * **Other states:** most have either an apartment ownership act, a cooperative societies act, or both. The district registrar' | ||
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| + | ===== The registrar route: register without the builder ===== | ||
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| + | The single most useful fact in this dispute: in most states, buyers do not have to wait for the builder. The usual process is: | ||
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| + | - The provisional committee collects member forms, a list of buyers with agreement details, and copies of a few registered sale agreements as proof of the project. | ||
| + | - Draft bye-laws are adopted at a general meeting of buyers, using the model bye-laws published by the state cooperative or registration department. | ||
| + | - The application goes to the District Registrar or Deputy Registrar of Co-operative Societies (or the Registrar of Societies, depending on the vehicle) with the prescribed fee. | ||
| + | - The registrar issues notice to the builder. If the builder does not cooperate, the registrar can still register the society. Maharashtra has a specific non-cooperation procedure where buyers of at least 51 percent of flats can apply and the registrar registers the society without the promoter' | ||
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| + | Expect the registrar' | ||
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| + | ===== The MahaRERA and state RERA route ===== | ||
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| + | If the project is RERA registered, file a complaint citing Section 11(4)(e): | ||
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| + | * Relief to ask for: a direction to the promoter to form the society or association within a fixed time, and penalty under Section 61 for contravention. | ||
| + | * Attach: the buyers' | ||
| + | * Costs are modest (complaint fees vary by state, typically a few thousand rupees) and orders usually come faster than civil litigation. | ||
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| + | The RERA route and the registrar route are not alternatives. Run both: registrar for actual registration, | ||
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| + | ===== A deadline trap to avoid ===== | ||
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| + | Do not wait for "100 percent possession" | ||
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| + | ===== Where RTI helps ===== | ||
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| + | The builder is private and outside RTI, but two public offices hold useful records: | ||
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| + | * **Registrar of Co-operative Societies / Registrar of Societies: | ||
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| + | < | ||
| + | To the Public Information Officer, | ||
| + | Office of the District Deputy Registrar of Co-operative Societies, [District] | ||
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| + | Subject: Information on society registration for [Project name, address] | ||
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| + | Please provide: | ||
| + | 1. Whether any application for registration of a co-operative housing | ||
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| + | the promoter [builder name]; if yes, the date and current status. | ||
| + | 2. Certified copy of the application and list of enclosures, if filed. | ||
| + | 3. Date-wise file movement and reasons recorded for any pendency. | ||
| + | 4. The prescribed procedure and forms for flat purchasers to apply for | ||
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| + | </ | ||
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| + | * **State RERA authority: | ||
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| + | File via [[file-rti-online-india|RTI online]] or your [[state-rti-portals-directory|state RTI portal]]. A vague RTI gets rejected; keep each question tied to a record, see [[why-rti-gets-rejected|why RTI gets rejected]]. | ||
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| + | ===== FAQs ===== | ||
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| + | ==== How many buyers do we need to form the society? ==== | ||
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| + | It varies by state and vehicle. Maharashtra cooperative societies commonly need a minimum of ten members covering at least 51 percent of flats for the non-cooperation route. Check the model bye-laws and your registrar' | ||
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| + | ==== Can the builder keep unsold flats out of the society? ==== | ||
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| + | No. For unsold flats the builder ordinarily joins as a member holding those units and pays their outgoings. Unsold inventory is not a ground to refuse formation. | ||
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| + | ==== The builder formed an " | ||
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| + | A builder-controlled body does not discharge the Section 11(4)(e) duty in spirit. Buyers can still press for a genuine association with elected members, through the registrar and RERA. | ||
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| + | ==== Our project finished before RERA. What then? ==== | ||
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| + | RERA applies to registered projects. For older buildings, the state cooperative or apartment law route through the registrar remains fully available, and in Maharashtra MOFA still applies. | ||
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| + | ==== What does formation cost? ==== | ||
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| + | Registration fees are small, usually a few hundred to a few thousand rupees plus share capital per member under cooperative law. The real cost is coordination time, which is why a provisional committee matters. | ||
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| + | ==== After registration, | ||
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| + | Three things, in writing: handover of [[practical-guides: | ||
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| + | ===== Related guides ===== | ||
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| + | * [[practical-guides: | ||
| + | * [[practical-guides: | ||
| + | * [[practical-guides: | ||
| + | * [[practical-guides: | ||
| + | * [[practical-guides: | ||
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| + | Download the society formation checklist (PDF). | ||
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| + | {{tag> | ||