Consumer forum to examine if builder can keep 'unspent' maintenance money
The National Consumer Disputes Redressal Commission has agreed to examine whether a developer could refuse to part with the unspent money collected for a housing project in the name of maintenance after the formation of residents’ welfare association, entrusted with the task of upkeep of the premises. A bench of Anup K Thakur and C Viswanath issued notice to Kolkata-based real estate company, ABA Corporation, on a plea of a group of flat owners of its Ghaziabad housing project, who filed complaint alleging that the builder was not handing over Rs 7.16 crore to their registered association. The amount was collected from 868 apartment-owners in the name of IFMS (Interest-Free Maintenance Security) and club security. The petition, filed through advocate Nikhi Jain, contended that as per law, the management and maintenance of the housing society got transferred to flat owners’ association after its registration and the builders must hand over unspent amount collected under the head of maintenance. The petitioners are flat-owners in ‘Olive County’ housing project which is located at Vasundhara in Ghaziabad. Their association was registered in 2013 and is governed by a Board of Management comprising members elected from among the apartment owners. Maintenance of the project was handed over by the promoters in 2016 but petitioners alleged that the company had not transferred the money to the association till date. They contended that the promoter was required to transfer the deposited amount in favour of the association at the time of handing over the management of the building.
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