Procedure of forming the association of allottees

(1) The application for formation of association of allottees shall, within six months from the date of commencement of this Act, be submitted, to the Competent Authority in such form and in such manner as may be prescribed for registration of association of allottees with the persons who have been allotted, sold or otherwise transferred the apartment, as members: Provided that any association of apartment owners, by whatever name called, which was registered under the previous law or under the Societies Registration Act, 1860 or any other law for the time being in force before commencement of this Act shall be deemed to be the association of allottees for all intent and purposes of this Act and such association of allottees shall bring their bye-laws in consonance with the provisions of the model bye-laws prescribed under this Act, within six months from the date of such commencement. (2) On receipt of application under sub-section (1), the Competent Authority, after satisfying himself that the proposed association of allottees and its bye-laws is in consonance with the provisions of this Act and the Real Estate (Regulation and Development) Act, 2016 and he shall register the association of allottees for the purpose of this Act and issue a registration certificate, within 60 days from the date of receipt of such application. (2) No departure from variation of, addition to, or omission from the model bye-laws shall be made except with the prior approval of the Competent Authority:

Provided that the contents and particulars of the bye-laws of the association of allottees prior to execution of the registered conveyance deed for the apartment shall be such as may be prescribed.

(3) The bye-laws framed under sub-section (1) shall provide for the following, among other matters, namely: ―

(a) the manner of election of an Executive Committee from among the apartment owners, term of office of the members of the Executive Committee, the number of persons constituting the Executive Committee, the powers and duties of the Executive Committee, method of removal from the Executive Committee, the powers of the Executive Committee to specify the services to be performed bythe Secretary and other office-bearers and specify which of the powers and duties granted under the bye-laws or otherwise may be delegated by the Executive Committee to such office bearers;

(b) manner of calling meetings of the allottees and the number to constitute a quorum;

(c) election of a President of the Executive Committee who shall preside over the meetings of such Executive Committee and the association of allottees;

(d) election of a Secretary who shall maintain a minute book wherein all resolutions shall be recorded;

(e) election of a Treasurer who shall keep the financial records and books of accounts and shall be responsible for the audit of accounts;

(f) creation of an association of allottees Fund;

(g) custody of record relating to land of the projects including deed of transfer executed in favour of association of allottees;

(h) maintenance, repair and replacement of the common areas and facilities and payments therefor;

(i) manner of collecting from the apartment owners their share of the common expenses;

(j) engagement and removal of persons employed for the maintenance, repair and replacement of the common areas and facilities;

(k) the method of adopting and amending administrative rules and regulations governing the details of the operation and use of the common areas and facilities;

(l) restrictions with regard to the use and maintenance of the apartments and the use of the common areas and facilities, as may be necessary to prevent unreasonable interference in the use of each apartment and of the common areas and facilities by the several apartment owners;

(m) the percentage of the votes required to amend the bye-laws;

(n) to retain certain areas of the building, subject to the approved plan, grant lease for commercial purposes and to utilise the proceeds of such lease as common expenses for maintaining the building and the common areas and facilities and, if any, surplus is left after meeting such expenses ,distribute such surplus among the apartment owners as income after obtaining prior approval of the Competent Authority; and

(o) any other matter not inconsistent with the provisions of this Act relating to the audit and accounts and administration of the property and annual and special general meetings, annual reports and the like.

(4) No modification or amendment to the bye-laws shall be valid, unless it is accepted by two third members of the association of allottees and with the approval of the Competent Authority who shall give a time period of one month, to display the modification suggested along with the justification in the notice board and in the visible place of the apartment for receipt of objections and suggestions from the apartment owners.

(5) The rights and the responsibilities of maintaining the common areas and facilities in the project lies exclusively with the association of allottees or the agency appointed by the association of allottees, subject to the powers of the competent authority in this regard as mentioned in this section.

(6) The Executive Committee or any other person authorised by association of allottees shall have right to access to each apartment, from time to time, during reasonable hours for the maintenance, repair and replacement of any of the common areas and facilities therein or accessible there from, or for making emergency repairs therein to prevent any damage to the common areas and facilities or to another apartment or apartments.

(7) The facilities in common areas, as located within the project, shall have proper signage such as parking spaces and services including but not limited to electric sub-station, transformer, generator set rooms, underground water tanks, pump rooms, maintenance and service rooms, fire fighting pumps and equipments etc. and other permitted uses as per sanctioned plans.

(8) All charges towards maintenance, security, advance for maintenance, regular maintenance or any other charges as mentioned in the bye- laws shall be collected only in the bank account opened in the name of the Association of allottees in a “Scheduled Bank”.

Explanation.― For the purpose of this clause, the term "Scheduled Bank" means a Bank included in the second Schedule to the Reserve Bank of India of India Act, 1934.