Collecting funds

Collecting funds

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Your property-related legal queries answered by S.C. RAGHURAM, Partner, RANK Associates, a Chennai-based law firm

A promoter has not completed the project and hence has not requested the Association (a registered one) to take over the project for maintenance. Under these circumstances, is it in order for such an Association to collect a start up fund from apartment owners? As per the resolution passed in the general body meeting, prior to the hand over and take over the project for maintenance, there is no provision for such collection in the bye-laws.

T.Natarajan

Chennai

If the owners have formed and duly registered an Association and the bye-laws are in place, decisions taken by the general body can be implemented. Once the building is completed, the committee/general body (as provided in the bye-laws) can decide on the pre-requisites/ checklist for taking over the project for maintenance from the promoter.

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