A Note on Registration of Apartment Owners’ Association

A Resident Welfare Association which is an Apartment / Flat Owners’ Association can be registered under Telangana Apartments (Promotion of Construction and Ownership) Act, 1987.

An Amendment Rule 7 of Telangana Apartments (Promotion of Construction and Ownership) Rules, 1987 was made by G.O. Ms. No. 42, MA & UD (M1) Dept., dated 02-02-2013 to enable Apartment / Flat owners’ associations to get them registered under the Act.

The amended Rule lays down that:

  1. (c) The commissioner for Co-operation and Registrar of Co-operative Societies, Hyderabad or any person authorized by him is empowered to register the flat or apartment owners association under the Andhra Pradesh Apartments (Promotion of Construction and Ownership) Act, 1987

(d) The procedure prescribed in Andhra Pradesh Co-operative Societies Rules, 1964 shall be followed for           Registration of Flat or Apartment Owners Association and Bye-laws of the Association of the Flat or Apartment owners”

As per Section 3 (c), there should be at least 5 apartments in a building or in more than one building with not less than 2 apartments in each building. That means, 5 or more members can form an association and register under the Act, as against 7 persons in the case of Society under the Societies Registration Act, and 21 members in the case of Co-operative Society under Co-operative Societies Act.

The Association, though registered under the Act, it will not be an artificial judicial personality and neither it can sue nor be sued directly and can do so only in the name of its President and the property also is held in the name its president representing the association. As per the Rules.  As per the model bye-laws suggested in the Rules, it can have a Seal as common seal (Bye-law No. 48)

Once the association is registered under the Act, it can exercise all its rights and perform the functions envisaged in the Act.

Jagadeeshwara Rao, FCA

 

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