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
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.
Homebuyers, who are filing FIRs against residents’ associations, claim unregistered RWAs have defrauded them to the tune of Rs 88 lakhs in maintenance charges.
In the absence of a competent authority to redress grievances under the Karnataka Apartment Ownership Act, homebuyers had started filing criminal charges against RWAs.