How to form an Association of Apartment Owners

It is common that builders do not want that the apartment owners of an apartment complex form their own association and start managing the affairs of the apartment complex. The law i.e. the Uttar Pradesh Apartment (promotion of construction ownership and Maintenance) Act 2010 mandates that it shall be the joint responsibility of the builder/ promoter and the apartment owners to form the association, however, in practice the builders are most reluctant to form an association of apartment owners as same will take away the right to manage the common areas and facilities and money collected for that. Under such circumstances, when the builder is not forming the association of apartment owners in Uttar Pradesh especially in Noida, Greater Noida, Lucknow, Agra, Ghaziabad, Meerut, Allahabad etc. then the buyers should take following steps to form the association on there own:

Option-1: Self Formation

Step-1: Serve Notice upon the Builder for Formation of AOA & Competent Authority

Serve a notice of 30 days to the Builder asking him to form the AOA or else residents will conduct a GBM on first Sunday post 30 days from the date receipt of the said notice by the builder. Copy this notice to the Competent Authority as well as the Registrar of the Societies. Publish the notice along with postal receipt among all the apartment owners. The finer nuances of the notice can be discussed with advocate depending upon circumstances.

Step-2: Call General Body Meeting i.e. meeting of all apartment owners

Post 30 days of the service of the notice on builder conduct a general body meeting. General body means all the residents of the apartment building. This meeting should be notified through wider publicity and all the apartment owners must be aware of the same. The Agenda of the meeting should be mentioned i.e. formation of AOA, adoption of Model Bye-Laws and elction of Board of Management.

Step-3: In GBM pass resolutions to form AOA and elect office Bearers

In the GBM pass 3 resolutions:

1. That all the apartment owners agree to form AOA.
2. That all the apartment owners adopt the model bye-laws dated 16.11.2011
3. Chose a Board of Management of 9 members comprising of President, VP, Secretary & Treasurer and Executive members.

Step-4: Register AOA with the Registrar of Societies

The elected Board of Management will do the followings:

1. Write and follow up with the Competent Authority (LDA, ADA, KDA, GDA, NOIDA, GNIDA, YEIDA etc.) to get NOC for the formation of the AOA on the basis of the resolutions of the GBM.
2. Post the issuance of the NOC from Competent Authority, register the AOA at the office of the Registrar of Societies through online portal available at : http://uprfsc.gov.in/

Option-2: Mandamus from High Court

As per section 14(1) of the U.P. Apartment Act it is the joint responsibility of the apartment owners and promoter to form the AOA. In case despite all legal requirements being met but still if the promoter is not forming the association then it is imperative on some volunteer residents to take steps for the formation of same with help of the competent authority.

The apartment owners after taking the Step-1 as suggested above i.e. after service of notice to the Promoter can complain to the Competent Authority about non-adherence of the law by the Promoter and request for a direction from the Competent Authority to the Promoter to form and register the Associaton. Such request should be made in writing as well by a personal meeting.

If in case the Competent Autority is not issuing direction and is delay dallying the process than the apartment owners can approach High Court and should request for the direction to the competent authority to take steps for the formation of the apartment owners association.

Once there will be an order of the High Court then the process of registration will be fast and smoother.

Further, you can also watch my youtube video on the formation of an association of apartment owners. In the video I, advocate Prashant Kanha along with advocate Anand Mishra have tried to explain about the process involved in the formation of the association of apartment owners.