KAOA 1972 and KCSA 1959 and KSRA 1960 are three acts in Karnataka under which apartment associations are formed.

As per section 10 of Karnataka Ownership Flats Act 1972 (KOFA 1972), apartment owners' associations can be registered as a co-operative society or as a company.

By registering as a cooperative society, an apartment owners' association gains legal recognition as a registered body corporate, which can own property, sue and be sued, and enter into contracts. It also provides a framework for transparent governance, democratic decision-making, and collective action among residents.

All owners General Meeting is called and proposal of forming a cooperative society is put forth in the house. 20 promotors are either elected or selected post nomination self / someone) as promoters in the presence of an external witness. A chief promotor is selected / elected from those promotors The initial set of promoters are given the duty to forward a proposal for the formation of the co-operative society to the ROCS. Post satisfactory verification of the required documentation, ROCS appoints a case officer for the same, and visits the complex for inspection. Upon inspection, if satisfied they direct the chief promoter to open a bank account in the Co-operation Bank of Karnataka. Then the chief promoter invites flat owners to be the share holders of this proposed association by depositing a share amount (Total value of the share shall be mentioned in the letter) in the Co-operative bank and issues share certificate. Once, the aforesaid step is completed by apartment owners subscribing to be share holders, then registration certificate is issued to the association along with the certificate of registration by Registrar of cooperative society including registered bye law Post this a general election is called by the ROCS. (in our case 200 apartment owners (majority of the residing owners) was the number, 2000 rupees per share. This election is conducted in the presence of a govt officer (returning officer) deputed by the State, BBMP etc. The returning officer conducts the election as per the the KCSA Act 1959, Rule of KSRA 1960 act using secret ballot. The returning officer publishes the vote counts after a very transparent counting of votes and declares the elected board of director. The same to the ROCS. Total 13 seats - 1 reserved for SC, 1 for ST, 1 OBC and two for ladies and rest shall be general category Then ROCS directs the elected representatives to choose Office Bearers (another election after a week within the board of director) and the same is intimated back to ROCS. Post that ROCS directs the President (Office Bearer) to call for the First General Body Meeting and resolutions for opening bank account in other bank, appointment of CA, lawyer etc. are conducted Upon successful completion of the Meeting letter is issued to the cooperative bank to transfer share capital money to association chosen bank account From this point association is operational within the remit of the bylaw. The said bylaw's can be amended from time to time and rules for society can be made calling GBM with majority as required and by passing resolutions (based on majority votes in transparent manner)

The registration process is bit complex and follows strict adherence of the law. There are thousands of paper works to be done. Since bylaws are written in kannada, hence it requires translation for non kannada speaking owners At the moment one member of cooperative society cannot hold membership in another apartment cooperative society (this needs fix) Office bearers needs to be in chair for 5 years term. Which gives time for them to execute the plans for development and improvement with sufficient time. However it may become too long time to spend given other personal responsibilities.

As per the section 2 of KAOA act 1972 a DOD is supposed to executed by sole owner before the first sale of apartment unit or by all owners post that and also a FORM B to be signed by ALL OWNERS. But most of the builders violates this. What is DoD : – It is a revenue document that specifies the description of the apartment, its measurements, amenities etc. DODs being a revenue document it is submitted infront of sub registrar to register the same. However a sub registrar is not a competent authority and do not have rights to register bylaw's of the association under KAOA 1972 (which is mostly violated and executed by him) Registrar of co-operative society is the competent authority to register an association under KAOA 1972 act. However due to the lack of clarity Registrar is unable to register the same However the developer / promoter sends these DoD to the Registrar of Co-operative Society (ROCS) by Postal Service. The Office bearer in the ROCS office receives the sealed envelope and acknowledges it. When such a thing is done, a RPAD(Registered Post with Acknowledgement Due) is created and it is a notification that the addressee has received the envelop. Using that acknowledgement, the promoter / developer announces the creation of the association. In this process thus a association is formed under KAOA 1972 act, but remains un-registered and will not become a body corporate to enter into any conveyance deed for land title transfer to allottees of apartment owners as mandated by section 17 of K-RERA. (For this reason builders prefers to form an unregistered assocaition, which primarily secures the ownership of land with the builders / land owners and never gets transfered to apartment owners. Verifying the revenue records / EC may confirm this. A new bank account is allegedly created without any registration certificate in the name of the association and maintenance is handed over. The said bank account shall only be a current account and not savings account. Thus money deposited will not earn any interest.

The builder is not supposed to add bye laws for the DoD document and the Sub-Registrar is also not empowered to register a bylaw Although ROCS is the “Competent Authority” to register the association, No Power is conferred upon ROCS to carry out this activity. The Office Bearer that accepts documents in the ROCS Office, just gives the RPAD to the envelope. Please mark that, the registration of the association has not happened. The reason is as explained in point (2) above. Without a registration number, the association thus formed (pretended to be formed) is not a body corporate or legal entity to enter into valid contracts Elections are conducted and builders or landowners who has several apartment will enjoy multiple votes and elect people of their choice using huge number of votes they have against other apartment owners who owns one or two flats. Thus functioning of association mostly remains under the control of builders Creating a bank account for a non living entity without a registration number is illegal and doesn't satisfy the KYC norms laid down by the RBI There is no competent authority for this association. So any corruptions by management committee can be addressed only in the court, which "may" take long years for order. Generally such issue resolution may take years and thus it is difficult to control corruptions in these associations, resulting in altercations between apartment owners As per Section 17 (1) of the RERA Act, 2016, the promoter shall execute a registered conveyance deed in favor of the allottee along with the undivided proportionate title in the common areas to the association of the allottees. However KAOA 1972 being an "Un registered association" it may be impossible to execute the conveyance deed

Registrar of Co-operative Society(ROCS)

No, because in their RTI reply, they had mentioned that they dont have the power as the Govt of Karnataka is yet to notify them and it has not been done from since. ​

No. The Sub Registrar is an authority whose only work is to collect stamp duties during Sale Deed registration.

Yes. It is a technical necessity to become a legal entity or a body corporate

It is illegal on the part of the bank and violation of KYC norms of RBI to open bank accounts for an association without registration number.

In Bengaluru, many associations were created under the provisions of the Act KSRA 1960. Under this act, it is illegal to collect maintenance from residents due lack of provision. This act is only meant for non profit organisation. There were cases and high court order, wherein some apartment owners had gone to courts and got the order to get the association cancelled.

Yes. Not one Apartment Owners Association in any complex in Bengaluru have a registration number. Many home buyers groups in karnataka has approached gov of karnataka to fix this act, but it is still not yet fixed and not appropriate to protect the apartment owners interests.

The answer is unknown. There have been many activists complaining to the respective banks and the RBI highlighting this illegal practice and it is upto the RBI and Banks to taken actions.

Yes. In the month of October 2022, an MLA of Karnataka Assembly Mr. ST Somasekhar had questioned in the house whether apartments can be registered under KAOA 1972. The reply was that, KAOA 1972 does not specify anything related to the process of registration of the apartments association. It only deals with registration of Deed of Declaration (DoD) and its jurisdiction ends there.

The term UDS (undivided share is misleading word). It is true that in the Sale Deed an UDS is declared to be conveyed, but it does not automatically adds our name as an owner of the land in revenue records. All in all, we dont have our name recorded anywhere in land records or khatha in apartment. Please be encouraged to search for the land owners name on the survey numbers of the apartments in Encumbrance Certificate Karnataka - ಕರ್ನಾಟಕ ಸರ್ಕಾರ or bhoomi.com

No. The flat that is purchased through Sale Deed registration makes you the sole owner of the flat. It is upto you on how you plan to pass on this asset. Even if your apartment association is not registered under KAOA 1972 act you can sell, resell, or inherit the property as per the registration act and by execution sale agreement, gift deed etc.

Registrar of Co-operative Society is the competent authority.

Yes. The existence of a registration certificate issued by the ROCS is the evidence

The bye laws of the co-operative society states that. These bye-laws are by standard drafted as per the provision of the KCSA 1959 act

There are three kinds of disputes : Interpretation of bye-laws Misappropriation of funds The ROCS decision on any disputes pertaining to the three types is final.

No. No power is conferred onto the ROCS by the Govt of Karnataka.

You will have to go to the Civil Courts. The Civil Court will send a letter to the competent authority (ROCS again), who would decline saying it has no power and then a court proceeding will be kicked off. ​

No.

Not by default. But once when government clarifies process of land conveyance / implements deemed conveyance like we have in state of Maharashtra, the land title transfer can happen to the society (association or allottees / apartment owners) since it is a registered legal entity under section 17 of K-RERA, whereas it is not possible for the association formed but un registered under KAOA 1972.

This is a remedy that can be done only through the legislature and the legislature through amendments can only bring about the change. A PIL or WP to High Court of Karnataka can be filed and at best the court can give direction to the Govt of Karnataka. But accepting and implementing the directions is still under the Govt’s will. No court has power to amend any act of the legislature.

No. There is no apartment in Bengaluru. All owners do have a Sale Deed registered with UDS But in land records their name doest get reflected as conveyance of land is not done to apartment of allottees as per section 17 of KRERA

We can be legally represented as a whole. We can enter into a binding contracts with external vendors. For any municipal work to be done, the co-operative society can be represented. Auditing of accounts needs to be done mandatorily and if any financial mishandling is found, then the ROCS can initiate appropriate action. In case of defaults by any person residing in the apartment, the complaint can be raised to the ROCS through the Elected members and it is the ROCS who can take measures to recover the lost maintenance money. No elected member in any association or co-operative society has any power to cut/curtail facilities due to non-payment. This power to take measures, is only conferred to ROCS.

Yes. But it should be within the permissible limits of the KCSA 1959 act. The amendments needs the GBM to pass resolutions and need to be sent to ROCS for ratification and if ROCS does not object to it, only then it can be incorporated.

No. Office Bearers only have the responsibility to run the activities of the co-operative society as per the rules. If there is any deviation in rule or it is found that the office bearers have overreached their jurisdiction, then there are many punishments that can be inflicted onto them by ROCS if proven true. (Including dismissal from office and ban to run for any post for 3 years.) Again, it also depends on the gravity of the offense.

Every motion, MoM and records needs to be put in the office for verification and inspection and open for members. The same needs to be sent regularly by the Secretary (a non resident of same apartment complex) to the ROCS. Failing to do so will lead to actions liable to be taken by the ROCS.