Society is better option
2) seek audited accounts from Godrej
3) it would depend whether builder is in deficit as claimed
4) audited accounts would reflect correct position
Cooperative Commercial Society not formed by builder, builder asking money for maintenance
We owned multiple shops in City Square, Godrej Garden City Ahmedabad, Possession given to us in 2015. (I am Secretary of Shop owner's Association) As per agreement with Builder (Godrej) , they collected two years maintenance plus deposit total 292 Rs per Sq feet, (maintenance 8 per sq/month) Due to some some internal issues they failed to form a Cooperative Society and there was no formal hand over to shop owners so far. Builder stopped doing maintenance from 1 July 2020. We (shop owners) created a Association of Members and doing FM service from 10 July 2020 onwards, Godrej maintained property for 5 years (till June 20) and told us that maintenance money is no more left and asking for more money (INR 80 lacs ) (they maintained it for five years rather two years but it was without our [shop owners] consent) . As per their records they are in minus 80 lacs. Now, Godrej is ready to form Cooperative Commercial Society and handover to shop owners and thereafter they want Cooperative to pay / settle previous dues. Shop owners does not want to pay rather want Godrej to pay (commit in writing) our maintenance deposit to future Cooperative society. I want advocate opinion on following: 1. Is this better to form Cooperative Society (rather just association) ? 2. What if Godrej send legal notice / or invoice to Cooperative Society after we formed the society? 3. Is there any legal way where Cooperative Society can force Godrej to get maintenance deposit back? 4. How can Builder maintenance bank account can be negative ? (they said it was before RERA) 5. They overspend many for sure, we are running / managing maintenance with just 3Rs / sq /per month. They charged us 8 Rs / sq / per month . Thanks, Vivek Singhwal
Asked 4 years ago in Property Law
Religion: Hindu
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7 Answers
I think your answer is not unto mark . They over spend our money , Assuming audit say -80 Lacs. here is my questions: 1. How it can Society account be negative ? 2. Builder never asked us (shop owners) before spending (going negative) They can n't service us with out our permission and then raise invoice 3. How cooperative society formed in July 20 is responsible for expenses done in FY17-FY 20. 4. What if Society don't pay? 5. Is this better to form Cooperative Society (rather just association) ? Many shop owners are not willing to form society with negative balance, It is not viable for us.
Asked 4 years ago
Builder is bound to send audited accounts every year for maintenance collected by them
2) in your case kindly clarify whether builder has done so every year or not
3) hence advised you to seek audited accounts for expenses incurred by builder
4) Godrej is reputed builder and they would not misappropriate funds of shop owners
5) builder would sue individual shop owners to recover excess money spent by them
6) society is not liable for expenses incurred by builder prior to its formation
1. There is no necessity to form a cooperative society once again if the shop owners association formed now is a registered body.
You can conduct the business of the association based on the bylaws of the registered association.
2. Then the society has to respond and comply with the demands if the demand is legally valid.
3. The society has to decide after the subject is discussed in a meeting of the society with its members.
4. You can verify the accounts of the builder which he reports to run in negative and scrutinise the same through an auditor to find the facts.
5.
1. You can demand the builder to provide the accounts detail and can verify it through your auditor also.
2. Once the builder was undertaking the maintenance since beginning, he need not ask your permission to continue the service of maintenance, it goes without saying.
If the maintenance service was provided by the builder beyond the stipulated two years also, then the show owners could have objected to it sand demanded to form the society which they now demand from the builder.
Therefore entire blame canot be put on the builder especially when you shop owners failed to question this continuance.
3. 3. The builder can hand over the accounts as well as the liabilities to the society that would be formed now because he is the loser and he has to recover the amount hence there is nothing illegal about it.
4. If society refuses to pay then the builder may sue the society for recovery.
5. The shop owners association may sit and discuss in a meeting about the pros and cons of the situation and take a decision on the situation to handle the same effectively.
Thanks for your answers @Ajay and @ Kalaiselvan >>Builder is bound to send audited accounts every year for maintenance collected by them . Here is Godrej is in partnership with Siddhi Group, It was mismanaged by them. No, so far they have not shared any audited accounts with any Shop Owners. I owned three shops myself since 2015. They keep on spending our money without involving us, It is in Jan 20 they sent invoice to shop owners (approx INR 80,000 for each shop-size (245 sq ) way above 8Rs per/sq/month) , also with out much details. We are asking for audited accounts since last few months (oct 19) and they are asking us to form Cooperative Society and saying they will share any formal audited accounts to Cooperative Society ONLY. They just sent us two line summary of INR -80 lacs ONLY that too in Jan 20. The last shop / office they sold was on 15 July 20 (after they left maintenance, we are doing maintenance from our pocket since 1 July 20 ). Also, they received approx INR 27,00000 (27 lacs) as maintenance money from last office sold. Also, they earlier used few shops as their backend office for few years (with out paying of any maintenance as they said this will be adjusted). Again,they never ever share any formal audit reports to us, and they are not doing so intentionally, ignoring our requests and emails. saying that you first need to form registered Co-operative Society. Questions: 1. Does builder require any NOC from society after property handover? 2. What do you think ? Do we have strong case asking them to refund maintenance deposit ? Or saying NO to their -80,00000 invoice ? Thanks, Vivek Singhwal
Asked 4 years ago
It is responsibility of builder to form cooperative housing society and hand over audited accounts
2) issue legal notice to builder to furnish audited accounts for period 2015 till date
3) only after perusal of audited accounts can we say whether you have strong case or not
4) no need to pay deficit . Let builder sue you to recover the money . Take the plea that inspite of repeated reminders no audited accounts have been furnished by builder
Your demand for audited accounts is justified.
Rendition of accounts to the owners from whom the maintenance amount is being collected, especially in the absence of a society or registered body representing the owners of the complex,on demand if not on a regular or routine basis, is essential.
The builder cannot refuse or evade the subject matter.
If he had incurred the said expenses to the extent of his claim, he should not hesitate or refuse to furnish the account details.
Since you people formed a registered association, you can handle the subject matter legally and challenge his demand or claim in the court of law by seeking court direction to the builder to produce the documentary evidences to substantiate or justify his claim for maintenance amount.
1. No.
2. It's a good case on merits
