According to NCDRC, only registered under the Companies Act, 1956residents' welfare associations (RWAs), consumer organisations, cooperative societies or flat association or plot buyers can seek compensation losses against builders in the commission.
Advantages of Registered Associations
- Only a registered association can act as an arbitrator to settle any dispute. For example, the association forms specific laws, which everybody in the apartment must adhere to. In case of any conflict, the association can take action against residents who violate the rules.
- Enforcement of law becomes an integrated part of the association to ensure harmony in the society.
- A registered association can take legal against any member who commits an offence such as forging or causing any loss to the association. Association must maintain proceeding reports to ensure transparency and smooth functioning of the society.
- A registered apartment association enjoys the overall execution of tax formalities or bank operations compared to non-registered associations.
Know the Process
A proposal letter that is addressed to the Registrar of Societies. All the executive committee members must sign the proposal. Mention the following:
- Association Name
- Association Address
- About proceedings of the first general body meeting in the society
- Memorandum of association (society name, what are the objectives, names and addresses/occupation of all members and by-laws (either printed or typewritten)
- And payment of a standard fee