Kindly clarify whether builder has furnished detailed audited statements of accounts for all these years
builder must justify additional demand of Rs 58 lakhs
take the plea that claim is barred by limitation
Can builder recover if he claims to have paid extra on maintenance
In 2006, Builder charged Rs 70 per sq ft as ‘one time maintenance deposit’ with explicit clause in the agreement that he would use only the interest accrued on this amount for maintenance. Plus he would return the principle amount to the resident’s organisation as and when formed. No time period for which maintenance deposit was charged has been mentioned. He has been taking maintenance deposit as and when purchases bought the flats till 2019. Since 2006, he took part OC of each building completed. Final OC was in 2015. Till date he neither formed a society nor called for any general body meeting. Now he claims all the maintenance deposit is exhausted and he has spent another 58 lakhs from his pocket. He applied to Dy Registrar to appoint an Administrator. Administrator (govt empaneled auditor) has taken over the accounts and approved the same. Can the builder now recover these 58 lakhs from the residents? What should be the way forward for the residents?
Asked 4 years ago in Property Law
Religion: Hindu
8 Answers
Can we ask for statement of accounts from builder through the consumer court?
Asked 4 years ago
Issue legal notice to builder to furnish audited statements of accounts
you can seek court orders to direct builder to furnish audited statements of accounts
We don’t know whether he has submitted audited accounts to Administrator or not. But Administrator has approved the accounts. Can we ask for audited accounts through Consumer Court?
Asked 4 years ago
Issue legal notice to builder to furnish audited statements of accounts
obtaining court orders through consumer forum would take time
When there is no society is formed on what basis can Deputy Registrar appoint Auditor. His appoint is invalid. Registrar has no jurisdiction for appointing such Auditor. Challenge his appointment in High Court.
- As per RERA , the builder has to form the Society /association within three months of most owners shifting to the flats.
- Further , a builder’s consent for formation of Association/society not mandatory, but as it is the responsibility of the builder to enable the formation of society and its registration.
- Further, a builder will pay all outgoings until the transfer of physical possession of the real estate project to the association of allottees.
- Hence, the builder cannot charge from the flat owner for his own wrongs.
- You can file a compliant against the builder before the RERA or Consumer Court .
The builder's claim now for additional maintenance charges should not be encouraged by the member/owners of the flat.
It is the fault of the builder to not form an association due to which he is taking advantage to claim this excess amount.
You may ask him to furnish the details of the account i.e., income and expenditure from the beginning for which he is claiming these charges in excess to the maintenance amount already paid by the members.
In fact the claim beyond three years is barred by limitation also.
You all may gather and discuss the issue to repudiate his claim and the grounds for repudiating his claim.
You can ask the statement of accounts directly by issuing a notice to him.
You cannot approach consumer forum for demanding statement of accounts alone.
You can approach consumer court only for the deficiency of service or for unfair trade practice by the builder.
If the builder is not furnishing the audited accounts even after issuing a legal notice then you can challenge his suit for recovery if at all he is filing one before the civil court properly