The High Court of Karnataka has given clear directions that an association which is registered under Karnataka Societies Registration Act 1960 (KSRA 1960) is meant for carrying out charitable purposes and not applicable to apartment associations and collect maintenance from flat owners.
The Registrar of Co-Operative Societies also ordered in 2018 that, any apartment associations who declared the property under Karnataka Apartment Ownership Act 1972 (KAOA 1972) cannot be registered under Karnataka Societies Registrations Act 1960.
So, under which act the apartment association to be registered? Many High Court cases have given directions that, apartment associations to be registered under KAOA 1972. But when home buyers have reached out to the competent authority of KAOA 1972 which is Registrar of Co-Operative Society, the competent authority had declined to register under the act.
If flat owners don’t wake up and take title transfer of their project land, the day will come when they will lose their entire investment when the apartment go for redevelopment or collapse due to act of god” says Dhananjaya Padmanabhachar, Sanchalak of Karnataka Home Buyers Forum.
Section 17 of RERA 2016 clearly mentioned, the promoters need to enable the formation of allottees association, transfer the title and handover the documents, assets to owners’ association.
“The situation of flat owners in Karnataka is like a car owner you own the driver seat of a car but not the entire car as the land title transfer not happening in Karnataka to flat owners’ association” says Jibin Jayaram.
What KOFA 1972 say?
As per section 10 and 11 of KOFA mandates formation of flat owners’ association under Co-Operative Societies Act or Company Act to transfer the apartment project land title.
— Commander Surendra
What RERA Say?
As per RERA act section 17, it mandates every promoter to enable formation of association of allottees and transfer the title of the project to association.
— Sudhir Pillai
Why Body Corporate?
In India, either a society or company of flat owners is a body corporate which has the legal rights to hold the title of the land and has the legal rights to execute contracts
— Ameya Usgaonkar
Karnataka Home Buyers Forum 