Homebuyers Take Charge: NCLAT Ruling on Apartment Owners Associations
In a landmark decision, the National Company Law Appellate Tribunal (NCLAT) has empowered homebuyers, ensuring that once an Apartment Owners Association (AOA) is registered, the management of common areas and facilities must be transferred from the promoter to the association. This ruling is pivotal, especially for projects that remain incomplete.
Background of the Case
The NCLAT’s ruling came in response to a plea from the homebuyers’ association of the Supernova housing project in Noida, developed by Supertech Ltd. The tribunal directed Supertech to hand over the management responsibilities to the AOA within seven days, emphasizing that a real estate company cannot resist this transfer.
Legal Obligations of Promoters
Justice Ashok Bhushan, chairperson of NCLAT, clarified that it is a statutory obligation for both the promoter and apartment owners to form an association. Supertech had argued that the AOA could only be formed if at least 33% of homebuyers had possession of their flats. However, the tribunal rejected this claim, stating that since the association was registered under the Uttar Pradesh Apartment (Promotion of Construction, Ownership and Maintenance) Act, it is deemed valid despite only 27% occupancy in the Supernova project.
Future Steps for Settlements
As the parties involved raised concerns regarding outstanding dues, the NCLAT urged them to engage with the Interim Resolution Professional for a settlement. The tribunal noted that any financial disputes should be addressed through the proper channels rather than in the current proceedings.
Conclusion
This ruling not only strengthens the rights of homebuyers but also sets a precedent for future cases involving incomplete projects. If you’re navigating the real estate landscape, explore Looffers.com for exclusive offers and insights tailored to homebuyers in India!
