Days after flagging unregistered associations, KRERA asks a developer to form RWA under law governing society registrations that legal experts say does not permit the collection of maintenance charges by RWAs
The Karnataka Real Estate Regulatory Authority (KRERA) has directed a private developer engaged in the construction of a senior citizens project in Mandya District to transfer the entire corpus fund.
If the project is delayed, stalled, or abandoned, the RWA can approach RERA to take it over. Only an association registered as a cooperative society can make such a takeover, explained the Authority.
Resident welfare associations registered under the Karnataka Societies Registration Act, 1960 cannot hold bank accounts for the purpose of maintenance collection, several Karnataka High Court orders have already said.
Citations: 2023 LiveLaw (Kar) 291 To 2023 LiveLaw (Kar) 336 Nominal Index: Emmanuel Michael And Union of India. 2023 LiveLaw (Kar) 291Lok Shikshan Trust & Others And Davalsab S/O Malliksab Nadaf. 2023.