Associations of apartments cannot register under Societies Act - Telangana HC
The state government's memo allowing flat or flat owners associations to register under the telangana Societies Act rather than the telangana Cooperative Societies Act or the telangana Mutual Aided Co-operative Societies Act, 1995, has been halted by the telangana High Court. The memo was released on august 21 by the principal secretary of revenue (registration), who had taken into account a CREDAI member's argument.
Madamanchi ramesh babu of Emerald Rainbow Vistas in moosapet filed a case with the high court challenging the same. He said that the letter would permit flat welfare groups and societies to continue operating without any government oversight, opening the door for financial mismanagement.
A senior attorney representing the petitioner, Sripada Prabhakar, stated that an executive memo issued by an official cannot take the place of laws passed by the legislature. The andhra pradesh Apartments (Promotion of Construction and Ownership) Act, 1987, was brought to the court's attention by Sripada. The President had approved the law on May 15, 1987.
The State of telangana enacted the aforementioned Act. He emphadata-sized that Rule 7 of the Act requires flat registration under either the telangana Mutual Aided Co-operative Societies Act of 1995 or the telangana Cooperative Societies Act, of 1964.
They provide the government the authority to order an investigation into claims of financial malfeasance. According to Sripada, flat developers either refuse to give the managing committee's corpus cash to the flat welfare groups or do it after the fact without charging any interest for the holdup.
Additionally, they don't have an audit of their books of accounts. The senior lawyer said that the so-called governing body of the associations/Societies keeps individual flat owners in the dark.
Justice Chillakuru sumalatha took the arguments into consideration and temporarily suspended the state government's memo.
A senior attorney representing the petitioner, Sripada Prabhakar, stated that an executive memo issued by an official cannot take the place of laws passed by the legislature. The andhra pradesh Apartments (Promotion of Construction and Ownership) Act, 1987, was brought to the court's attention by Sripada. The President had approved the law on May 15, 1987.
The State of telangana enacted the aforementioned Act. He emphadata-sized that Rule 7 of the Act requires flat registration under either the telangana Mutual Aided Co-operative Societies Act of 1995 or the telangana Cooperative Societies Act, of 1964.
They provide the government the authority to order an investigation into claims of financial malfeasance. According to Sripada, flat developers either refuse to give the managing committee's corpus cash to the flat welfare groups or do it after the fact without charging any interest for the holdup.
Additionally, they don't have an audit of their books of accounts. The senior lawyer said that the so-called governing body of the associations/Societies keeps individual flat owners in the dark.
Justice Chillakuru sumalatha took the arguments into consideration and temporarily suspended the state government's memo.