Rs 1.52-cr maintenance security: Panel dismisses Marble Arch RWA plea

Ramkrishan Upadhyay

Chandigarh, June 29

The State Consumer Disputes Redressal Commission, Chandigarh (Additional Bench), has dismissed an application filed by the Marble Arch (Owners) Resident Welfare Association (MARWA) for issuing direction to M/s Uppal Housing Pvt. Limited, to transfer an amount of Rs 1,52,86,440 along with interest from the date of formation of MARWA.

MARWA in the application filed through its president SC Choudhary said the association is a welfare organisation formed by the residents of the Marble Arch, Mani Majra, Sector 13, Chandigarh.

The association supervises maintenance and other services of the Marble Arch complex. The resident welfare association was registered in 2012 and has been working for the welfare of the people residing in the premises.

The Marble Arch complex was built by M/s Uppal Builders, Delhi, in 2009 with as many as 163 flats that were sold to individual owners. As per the apartment buyer’s agreement, there are various clauses which specify the binding effects on both the parties while selling the flats and purchasing the same. As per clause 6 (maintenance charges and other payments) in sub clause-6.5, a sum of Rs 40 per sq ft on super area will be paid before taking possession of the apartment as interest-free security deposit.

It has further been mentioned that the developers shall transfer the amount as per the clause to the association after one year. It was obligatory on the part of the builder/developer to transfer this amount to the MARWA with effect from June 20, 2013, as the MARWA was formed and registered with the Registrar of Firms and Societies, UT, Chandigarh, on June 20, 2012.

The association since its formation has been trying to sort out various issues in connection with the maintenance and development of the society and in this concern, wrote email and various communications to the Chairman and Director of the Uppal Group to transfer maintenance security amount, but unfortunately, despite some meetings, nothing at all was done on the part of the developer.

Since past many years, the developer has been intentionally delaying the crucial issue and illegally holding the amount, which has to be transferred to the association after one year of its formation.

On the other hand, the opposite parties (the builder) contested the claim.

Vikas Jain, counsel of the builder, argued that the complainant association is not having any locus standi to demand transfer of any amount.

The project under rules cannot be formally handed over to any association till the grant of completion certificate by the competent authorities. The delay in completion of the project was solely due to act and conduct of the residents and members of the complainant association. The complainant association is not permitting to complete the project and has created various hindrances from time to time.

The construction of 25 EWS flats is still incomplete due to the acts and conduct of the association and the same is now being carried by a government agency under the orders passed by the competent authority. The completion certificate will be granted by the Municipal Corporation only after completion of construction work on EWS flats.

After hearing the arguments, the commission dismissed the application.

The commission said the opposite parties can only legally handover the project to the resident welfare association after obtaining due permission from the MC, which is still pending on account of non-completion of 25 EWS flats. The commission said it is apparent that the association has failed to cooperate in the construction work of EWS flats, which are mandatory to be constructed under the PM Housing Policy. For the afore-stated reasons, the complaint is without any merit and hence, the application is dismissed as such.