Can a builder charge for club house membership ( one time) and retain the same amount as collected from all flat buyers for a club house which is constructed of free of FSI as allowed by BMC. The club membership charges one time are clubed along with development charges, legal charges, electric/water meter charges and gas connection. The developer in the agreement states that no account in respect of the amounts mentioned here and above shall be tendered. Please clarify having charged for the area of the flat can mainly the club house membership charges can be retained by the builder after handing over the club house to the society.
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Builder can recover lumpsum amount for club house membership from flat owners for construction of club house
after formation of society club house would be handed over to society for maintenance and money collected for club house construction need not be handed over to society
See if the builder has separately collected charges for maintaining the club house then he has to hand over said funds to the society or association formed at time of hand over.
The society can give a legal notice to the builder for same and can recover the said amount from builder.
Dear Sir,
At the time handing over to the Society the builder is supposed to handover all the amounts collected by him under any head. The management committee may get issue a legal notice calling upon him to surrender such amount which collected towards one time club membership charges.
what the builder has collected is not the membership charges, but the cost of construction of the clubhouse under the garb of membership charges
even though the club house may be built by him fee of FSI, the builder will have incurred cost for constructing the club house
it is that cost which builder has charged and not for membership per se
the builder used the membership charges collected from buyers and from a portion out of that, he must have constructed the club house and balance he retained as his profit
since all buyers must have been made to pay for the membership, all of them will be entitled to use the club house and its facilities after it is conveyed to the society alongwith the building and other common areas
the construction of the club is the promotional activity at the Builder for which he charges the fact buyers one time payment and provides the membership 2 the flat owners so that they can enjoy the facility of the club the club is constructed on the common area of the project which is also included in the FSI of the project this amount is non refundable and is kept by the Builder for construction and equipment purposes
1. FIRSTLY, construction of separate Club House, CANNOT be free of FSI and this is not permissible under the BMC Act & the DP rules.
2. Any Amount collected by the Builder /Developer /Society, is mandatorily bound to be accounted and handed over to the Society on registration, else it becomes a violation of the Income Tax laws. It would also amount to Cheating, Misrepresentation, Fraud on the Flat-Buyers.
3. It would further amount to negligence & deficiency under the Consumer Protection Act, for which a grievance petition can be filed in the Consumer Forum /Court.
Keep Smiling .... Hemant Agarwal
1) No he can't charge for Club house charges as this is facility that he has to provide kindly check his sales brochure and facility whatsoever he was going to provide to buyer.
- All amenities need to be handed over to the society as per law and Builder should be out of the complex after handing over the society .
- After handing over the society , the builder retains no right over any amenities, including the amount collected from the buyers of the flats in the name of club membership charges or whatsoever.
- If, the builder is not doing so, then the management commettee should issue a Legal Notice for the same and on denying , the society can take the said amount through court of law.
If first owner has paid the "Club House Development Charges" then no need to pay. But before coming on conclusion we have to check bye laws and find out exactly against what they are demanding. If demand is against the law/bye-laws you can approach to the concerned authority against society/federation
It depends upon the development agreement terms. If you file the same objectionable you can challenge the same
1. yes he can charge the same towards the membership.
2. If it is mentioned in the agreement that no charges will be levied for the club and against the same the charges have been levied then certainly you can file a case against him for recovery of the charges.
Regards
Nothing wrong from the builder side. It is buyers who have to be careful and move out. This is one way of doing business for them. In these cases club house and amenities membership can be granted to outsiders as well.
We have to read the fine print carefully and in case not comfortable move out of it. The membership fee is applicable in case if you opt for outside club as well, but you need to make sure the area where club house is built does not come in individual common area as this is not owners property.
The builder cannot retain the one time amount collected while handing over the club house to the society.
