A co-op society can be formed without an OC

18 November,2010 08:08 AM IST |   |  Vinod Sampat

Recently, I purchased a new flat in ready possession in Mira Road without an occupation certificate


Recently, I purchased a new flat in ready possession in Mira Road without an occupation certificate. Initially while giving possession of the flat, the builder confirmed that the OC will be obtained within six months, but now he is not responding to the same despite several calls. Now the builder is urging u00a0flat owners to form the society. Is it possible to form the society without OC?u00a0
Swaran Kumar K

A co-operative society can be formed without having an occupation certificate. In fact in the case of open plot societies, co-operative societies are formed even before the construction work commences. You will appreciate the fact that as of date you do not have a legal entity and if you form a co-operative society you will have a separate legal entity and will be able to tackle the problem in a collective manner.
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You can form a legal entity and knock on the doors of the court for justice. You are eligible to claim the excess amounts being paid by you for excess water charges. The role of a builder does not come to an end after giving possession of the flat. There are instances when builders give false assurances to the purchasers. It is always advisable to get the written commitment from the builder.

You should now build up evidence against the builder by writing letters to the builder reminding him that he had promised that he would be obtaining the occupation certificate within six months.

You are also advised to make an application to municipal authorities under the Right To Information Act and inquire why the occupation certificate has not been issued by the authorities.

You are also advised to take the written opinion of an architect as to the deficiencies committed by the builder. This will give u00a0you an idea of the factual position and help you to arrive at the logical course of action that should be taken up by you and other flat purchasers.u00a0

I have purchased a flat in Mumbai from a federation who got the land from the Maharashtra government. The federation has built seven individual buildings. All have separate societies. I am planning to rent out my flat, but the federation is asking for Rs 2,000 per year for a No Objection for renting out the flat.
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The federation also says that I have to pay 10 per cent non-occupancy charges to society for renting the flat. I am ready to pay the 10 per cent, but the federation is not allowing to rent, till I pay Rs 2,000 per year charge.

Nagendra B Kurunkar
Without going into the issue of the source of purchase of your flat, I have to advise you that you do not have to pay any extra money except for the non occupancy charges, which is 10 per cent of service charges. You do not have to pay any extra amount to the federation.
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The Supreme Court has also recognised the right of the member to sub-let the flat in the case of Sanwarmal Kejriwal v/s Vishwa Co-operative Housing Society Ltd., & others.

(Citation 1990 CTJ Page 364). In the aforementioned judgment, the court has observed that "There can, therefore, be no doubt that a member-allottee has a right to transfer his interest in the flat to a third party and, therefore, the right to induct a third u00a0party on leave and license basis."

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