4/29/2019 Forming Apartment Association in West Bengal - Advocate Chenoy Ceil

Post by : Chenoy Ceil (https://advocatechenoyceil.com/author/advocatechenoyceil/) Date : 05 Dec, 2014

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Forming Apartment Association Under Apartment Ownership Act West Bengal

Apartment Association Formation in West Bengal

An apartment or a flat is a self contained housing unit that forms part of a building. Under West Bengal Apartment Ownership Act, 1972, (the Act) Section 3(a), an apartment
property that has direct exit to a road or to a common area leading to such road and the apartment along with common areas and facilities forms an independent residential u
also includes a flat.

The object of the Act is to provide for ownership of an individual apartment and to make such apartment heritable and transferable property. The concept of apartment was bo
increasing population and growing need for housing in India and West Bengal. The object of the Act is not just to make such apartment units heritable and transferable but also
the common areas and facilities and the percentage share of each apartment owner in the apartment building. Most States in India have separate apartment ownership Acts tha
such units in different States.

The main difference in Apartment Ownership Acts in different States of India is the purpose for which such apartments are utilized. While in States such as Maharashtra and
apartments can be utilized for residential as well as commercial purposes, apartments in West Bengal are Kerala are predominantly utilized for only residential purpose. Under We
Apartment Ownership Act, 1972, Section 2, the Act applies to every building which is used, or is to be used, mainly for residential purposes.

price drop

Under West Bengal Apartment Ownership Act, 1972, Section 3(b), an association of apartment owners means the association competent to contract its own name and formed in ac
with provisions made in the bye-laws of the association.  This association can be formed in accordance with the Act and the West Bengal Apartment Ownership Rules, 1974.
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The association works for the welfare of the residents in an apartment, conducts events and protects the rights of the apartment owners by maintaining varied duties.

The association in West Bengal can be formed by all the owners individually or they can give power of attorney to one person who can submit the building or property under the p
of the Act. The benefit of registering the property under the Act is that it provides legal help to the residents in case of disputes. Further, it helps in organizing the maintenance of th
and provides clear bye-laws for the residents to abide and follow. If any association is formed which engages in maintaining the property or building without registering under the
it is cannot be termed as illegal per se but it is rather an interim/ad-hoc/unregistered association which needs to be registered under the Act.

Steps for Formation of Registered Apartment Owner’s Association under the Act:

Filing of Form A for Apartment Association

1. Firstly, the sole owner or all owners shall submit to the Competent Authority under the Act, a declaration in the given Form A in duplicate in non-judicial stamp p
Rs. 10/- which needs to be duly signed and notarized. Enclosed within the Form A must be authenticated copies of the Building Plan, Site Plan and all relevant Tit
deeds. However, in case of prospective buyer, he may also enclose photocopy of the Agreement for Sale Deed duly attested by Notary instead of the sale deed.
2. The filled in Form A with all annexure must be submitted in duplicate to the Competent Authority within 15 days from the date of their execution. Along with suc
A, the receipt of RBI fee paid and TR Form 7 has to be submitted to the Competent Authority.
3. Form A can be submitted to the Competent Authority under the West Bengal apartment Ownership Act, 1972 at Law and Promoter Cell, 3rd Floor, ‘C’ Wing, New
Secretariat Building, 1, Kiran Shankar Roy Road, Kolkata 700 001. Telephone No. (033) 22420801
4. A forwarding letter needs to be sent to the Competent Authority along with Form A and all other necessary documents stating the fact that he is submitting the
under the West Bengal apartment Ownership Act, 1972 by way of filing Form A which may be accepted.
5. After examination/verification of Form A and approval by Competent Authority, a copy of approved Form A with “Accepted” Stamp, date, signature and seal will b
returned to the applicant.
6. After receipt of Accepted Form A, the same needs to be registered within 15 days of return. The duly “Accepted” Form A must be registered under the Registratio
1908 with the Registrar / Sub-Registrar having jurisdiction over the property.
7. After registration, the same needs to be notarized and communicated to the Competent Authority. A photocopy of the registered Form A duly attested by a Nota
be filed with the Competent Authority along with Form 1 for getting Registration No. of the Association of the Apartment Owners.

Fees for Registration of Apartment Association in West Bengal

The fee for registering association is commensurate with the total value of the apartments of the building (i.e. if there are 8 flats of value Rs. 10,00,000/- each the total val
Apartments will be Rs. 80,00,000/0_ is to be deposited with the Reserve Bank of India in T.R. Form No. 7 under the appropriate head of account.  The T.R.Form No. 7 and com
receipt of the Reserve Bank of India (both original) and 1 set photocopy of both are to be enclosed.

(i) Amount of Fees :

(a) Upto Rs. 25 lakhs – Rs. 1000/-

(b) Above Rs. 25 lakhs upto Rs. 50 lakhs – Rs. 2000/-

(c)  Above Rs. 50 lakhs upto Rs. 1 crore   – Rs. 4000/-

(d) Above 1 crore upto Rs. 5 crores – Rs. 5000/-

(e) Above Rs. 5 crores – Rs. 10,000/-

(ii) Appropriate Head of Account :

“0216 – Housing – 02 – Urban Housing – 800 – Othen

Receipts – 008 – Receipt under the West Bengal Apartment

Ownership Act, 1972 – 16 – Other Fees”

(iii) Account Code : 0216 – 02 – 80000816.

(iv) Name of the Treasury : Kolkata P.A.O. – II

A specimen of duly filled in T. R. Form No. 7 is given below:

T. R. FORM NO. 7
[See sub-rule (2)(b) of T.R. 3.06]

Challan for Deposit of money in the account of

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GOVERNMENT OF WEST BENGAL

1. Name of the Bank of Branch  :  R.B.I., Kolkata

2. (a) Name of the Treasury       :  Kol., P.A.O. – II

(b)   Treasury Code :

 C  A  C
 

1. Account Code :

0 2 1 6 0 2 8 0 0 0 0 8 1
 

(14-Digit must be filled up properly)

1. Detail Head of Account : “0216 – Housing – 02 – Urban Housing – 800 – Other Receipts – 800 – Receipt under the West Bengal Apartment Ownership Act, 1972 – 1
Other Fees. Code : 0216 – 02 – 80000816”.
2. (a) Amount : Rs. 250/-

(b)  In words : Rupees Two hundred fifty only.

6. By whom tendered : Name & Address : XYZ,   ABC Road, Kolkata – 1.

7. Name / Designation & Address of the Departmental Officer on whose behalf/favour money is paid : Competent Authority, Under the West Bengal apartment Ow
Act, 1972, Govt. of West Bengal, Deptt. of Housing, Law Cell, New Secretariat Building, 1 Kiran Shankar Road, Kolkata 700001.

8. (a) Particulars and Authority of Deposit : Fees for Form – ‘C’ Instrument executed Apartment Owner(s) Under Sub-clause (i) of Clause (b) of Sub-Section (3) of Sect
the West  Bengal Apartment Ownership Act, 1972.

*(b) T. V. No. & Date of A. C. Bill :

9. Accounts Officer by whom adjustable :         Accountant General (A & E),

Verified                                             West Bengal

Signature of Department/Treasury Officer

Depositor’s Signature                                   Treasury Receipted Challan No.

Date :                                                         Bank Scroll Serial No.

Received payment                                        Signature with seal of the Bank

Date :

_________________

*In respect of Challan relating to refund of unspent amount of A.C.Bill.

(6) In case the Declarant is the constituted attorney of the apartment owners he must enclose a photocopy of the Deed of Power of Attorney duly attested by a Notary

(b) Disposal of Form A by the Competent Authority:

If the Form A filed by the Declarant(s) is found in order the Competent Authority will accept the Form A and return one set of Form A duly endorsed as “Accepted” to the applicant(s

Form A Format:
Declaration under section 2 read with section 10 of the West Bengal Apartment
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Declaration under section 2 – read with section 10 of the West Bengal Apartment
Ownership Act, 1972.
[ See sub-rule (1) of rule 3 and sub-rule (1) of rule 5 ]
1. In pursuance of section-2 of the West Bengal Apartment Ownership Act, 1972, read with sub-section (1) of section 10 of the said Act, I/we hereby declare that I am the sole own
all the owners/we are majority of the owners (delete the phases not applicable) of the property situated at Premises No./Dag No.______________ in the City/ Town
of______________________________ having its full postal address________ ___________________________________________________________________ and do further declare that hereby I/we su
said property comprising a building or buildings having residential units/both residential and commercial units together with common areas and facilities to the provisions of
Bengal Apartment Ownership Act, 1972 (West Bengal Act XVI of 1972).
Authenticated copies of the building plan and site plan, prepared by ______________ ___________________________________________________________________ and sancti
_________________________________________________________________ are appended herewith and marked respectively as Annexure ”A” and “B”.

The copy of relevant Completion Certificate is also appended herewith and marked as Annexure “C”. The copies of Voter Card/PAN Card of the declarants for identification as Ann
collectively.

The copies of receipt of letter in Form-E served to all the Apartment Owners are appended herewith as Annexure “E” collectively.

2. We_____________________________________________________________________ do hereby furnish further the following particulars as required under sub-section (1) of section 10 of the sa
A. Description of the property –
i) Area and description of the land upon which the building/buildings
is/are constructed :

ii) Area and description of the building/buildings

Building No. :
(a) Total Built up area :
(b) Number of storeys :
(c) Number of apartments :
(d) Other particulars, if any :

iii) Area and description of common areas and facilities :

(a) Lawn, Parks etc. :
(b) Road, Pathways :
(c) Other common areas, if any :
(d) Water supply arrangements :
(e) Street light within the property :
(f) Internal drainage :
(g) Other common facilities, if any :

(iv) Description of the limited common areas and facilities, if any

stating to which apartments their use is reserved :

(v) Value of the property :

(vi) Nature of interest of the owner/owners in the property :

(vii) Existing encumbrances, if any, affecting the property :

(B) Description of common areas and facilities in respect of each building –

(a) Foundation and main wall of the building/buildings :
(b) Stairway :
(c) Water tank :
(d) Plumbing network :
(e) Electric wiring network :
(f) Other common areas :

(C) Description of each apartment or each building-Apartment No……………

or Building No. ……………………….
(a) Location :
(b) Approximate area :
(c) Number of rooms :
(d) Immediate common area to which it has access :
(e) Any other information necessary for its proper identification :
(f) Built up area of the apartment :

(D) Percentage of individual interest in the common areas and facilities

appertaining to each apartment and its owner for all purposes including
voting :

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(E) Other particulars, if any :

3. I/We………………………………………………………………………………………. do hereby
further declare, covenant and undertake as follows –

(i) that each apartment constitutes a single residential unit, transferable and heritable as such, but shall not be partitioned or subdivided for any purpose whatsoever;

(ii) that each apartment owner, present or future, shall be entitled to an undivided interest in the common areas and facilities in the percentage expressed in the Declara
appurtenant to such apartment;

(iii) that the common areas and facilities, general or restricted, shall remain undivided and that no owner shall bring any action for partition or division thereof so long as the
remains submitted to the provisions of the said Act;

(iv) that the percentage of the undivided interest in the general or restricted common areas and facilities, as expressed in the Declaration, shall not
be altered except with the consent of all the apartment owners expressed in an amended Declaration duly executed and registered as provided in the said Act;

(v) that during the period the property remains subject to the said Act, no encumbrance of any nature shall be created against the property, though such an encumbrance may b
only against each apartment and the percentage of undivided interest in the common areas and facilities appurtenant to such apartment, in the same manner as in relation to a
separate parcel of property subject to individual ownership;

(vi) that the percentage of the undivided interest in the common areas and facilities shall not be separated from the apartment to which it appertains and shall be deemed to be
or encumbered with the apartment even though such interest is not expressly mentioned in the conveyance or other instrument.

(vii) that no apartment owner shall do anything which would be prejudicial to the soundness and safety of the property or reduce the value thereof or impair any easement or here
or shall add any material structure or excavate any additional basement or cellar;

(viii) that no apartment owner shall sell, otherwise transfer or rent out his apartment for any purpose other than residential; and

(ix) that for the proper and effective administration of the property and for the due maintenance, repair and replacement of the common areas and facilities the apartment ow
strictly comply with the provisions of the said Act and the bye-laws made thereunder and shall pay their share or common expenses as assessed by the Apartment Owners, and
failure to comply with any such requirement shall be a ground for action for damages or for other relief or reliefs at the instance of the Manager or the Board of Managers on beh
Association of Apartment Owners or in a proper case, by an aggrieved apartment owner.

In witness I/we have set our hands this……………. day of …………………. 20………. and solemnly declare that what is stated in ………………….. is true to my/our knowledge and what is
……………….. is to my/our information received from………………………………………………………………..

Sole Owner/or all the

(1) Shri/Smt………………………………….. Owners or majority owners
of the property
(2) Shri Smt……………………………………
(3) Shri/Smt…………………………………..
and so on,

in the presence of –
(1) ………………………………………………
and
(2) ………………………………………………
Solemnly affirmed before me this ……………… day of ……………….. 20……..
(Signature of the Magistrate/or person competent to administer Oath.)

Filling of Form C for Apartment Association

1. Another Form C, needs to be filled in duplicate in non judicial stamp paper of Rs. 10/- and duly notarized and submitted to the Competent Authority along with a
the Deed of Transfer and Sanctioned Plan after duly notarizing the same.
2. Forwarding letter to the Competent Authority under the West Bengal apartment Ownership Act, 1972 requesting him to accept Form C.
3. Declaration under Form C in Non-Judicial Stamp Paper of Rs. 10(ten) duly affirmed before a Notary (2 Sets) – One set will be retained by the Competent Authority
other set duly “Accepted” will be returned to the Declarant(s).
4. Photocopy of the Title Deed/Agreement for Sale Deed duly attested by Notary.
5. Photocopy of the Sanctioned Plan duly attested by Notary.
6. Fee in T.R. Form No. 7 under the head of account and other details as Sl. No. (5) of item No. (c) of Form A.
7. The requisite fees need to be deposited to the Reserve Bank of India, Kolkata in TR Form No. 7 and the receipt has to be submitted to the Competent Authority.A
of Fees :(i) Upto Rs. 3 lakhs – Rs. 250/-
(ii) Above Rs. 3 lakhs but upto Rs. 7.5 lakhs – Rs. 400/-

(iii) Above Rs. 7.5 lakhs – Rs. 500/-

8 Original copy of T R Form No 7 and Reseve Bank of India Receipt thereof along with 1 set photocopy of the above
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8. Original copy of T.R. Form No. 7 and Reseve Bank of India Receipt thereof along with 1 set photocopy of the above.
9. Photocopy of Registered Form A duly attested by Notary.
10. In case the Declarant is the constituted attorney of the apartment owner he must enclose a copy of the Deed of Power of Attorney duly attested by Notary.
11. If the Competent Authority finds the documents in order then he shall return Form C to the owner or owners duly accepted.
12. When Form C is accepted one copy will be returned to the Declarant.
13. The Declarant must get the Form C registered under the Registration Act, 1908 within 15 days of receipt.
14. After completion of all these procedures the association and its allottees can apply for registration of the association. Only those members will form part of the
association who have completed the above steps and submitted Form C.
15. After getting accepted Form C from Competent Authority, the Apartment Owners or Allottees will hold a General Meeting and take steps to submit Form 1 of the
Bengal Apartment Ownership Bye-laws, 1974.
16. Within 45 days from the date of submission of the property to the provisions of West Bengal Apartment Ownership Act 1972 (date of approval of Form A by the
Competent Authority) or within such further period as the Competent Authority may allow, on application to it, the apartment owners shall in a General Meeting
Association under some specific name and style and the Apartment Owner who presides over such Meeting shall immediately communicate the formation of su
Association along with the names of the members in Form 1 to the Competent Authority. However, it must be understood that Apartment Owner implies any pe
who own one or more than one apartment within the same building.
17. Thereafter the Competent Authority shall register the Association under a Serial Number and communicate the same to the Apartment Owners.
18. Within 15 days of formation of an Association, the Apartment Owner presiding over the initial General Meeting for formation of the Association shall serve notice
each member of such Association fixing therein the date (not before 15 days from the date of issue of such notice) on which and the time and place at which a G
Meeting shall be held for election of the Board of Managers (BoM) of such Association by secret ballot. The number of managers in the BoM must be a minimum
and maximum of 24. Votes need to be cast in person.
19. After BoMs are elected, the Board shall within 10 days of the date of election of its Managers, hold its first meeting and elect its President who shall forthwith for
the names of President and BoMs in Form No. 3 of the West Bengal Apartment Ownership Bye Laws, 1974 to the Competent Authority who shall register such na
20. Thereafter the Association will gain legal identity and can function effectively.

Filling of Form 1 for Apartment Association

Form 1 under bye-law 3(2) is to be filed in plain paper along with a Xerox copy of the certified copy of the Registered Declaration under Form A shall be enclosed.

The names of all apartment owners shall be stated in Form 1 as per regulation 3 of the West Bengal Apartment Ownership Regulations, 1974.

A specimen copy of Form – 1 given below :-

FORM NO> 1

[See Bye-Law 3(2)]

To

The Competent Authority,

Under the West Bengal Apartment Ownership Act, 1972,

Law Cell, Deptt. of Housing,

New Secretariat Buildings, 1st Floor,

1, Kiran Shankar Rop Ropad,

Kolkata 700 001.

Sir,

I hereby communicate that a General Meeting duly held on ____ (date) presided over by the undersigned, the Association of apartment Owners under the name and style of
OWNERS’ ASSOCIATION” for our property at Premises No. 111, ABC Road, Kolkata 700 000, Police Station ________ already submitted according to Provisions of the West Bengal A
Ownership Act, 1972, has been formed under bye-laws framed under the said Act with the following as members thereof:

Sl. No.         Name of the members         Member of the Apartment

In the building by him.

1.

2.
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3.

4.

5.

It is further stated that the Declaration in Form No. a approved by you was registered in the Office of the Assistant Registrars of Assurance – 1, Kolkata, vide being No.01659/07
copy of the certified copy of the Declaration obtained form the Registration Office, Kolkata is attached herewith for your ready reference.

Now, I would request you to register our Association and send the Registration number of our society to us.

Dated  : _____

Place   : Kolkata                                           Sd/-

Signature of the Apartment Owner

Presiding the General Meeting held

On _________________________.

Dr. Debdas Banerjee & Ors. v The State of West Bengal & Ors.
However, as of date, according to the West Bengal Apartment Ownership Act Office at Law and Promoter Cell, 3rd Floor, ‘C’ Wing, New Secretariat Building, 1, Kiran Shankar R
Kolkata 700 001. Telephone No. (033) 22420801, apartment ownership association formation is currently unavailable due to the recent decision of the Calcutta High Court in D
Banerjee & Ors. v The State of West Bengal & Ors. [W.P. No. 3724(W) of 2013].

In this matter, the Hon’ble Calcutta High Court has stated that Rule 3 of the WB Apartment Ownership Rules, 1974 as ultra vires Section 2 of the WB Apartment Ownership Act, 1
main contention in this matter and the confusion still prevalent is whether to form an association under WB Apartment Ownership Act, 1972, the declaration has to be sign
apartment owners or whether the majority can sign the declaration. The unworkable situation has been created because under Section 2 of the 1972 Act and Form A, all the a
owners need to sign the declaration while under Rule 3 of the 1974 Rules, signature of only majority members will be required.

However, Rules cannot take precedence over the Act and as such Rule 3 of 1974 Rules was declared ultra vires Section 2 of the 1972 Act. The matter is pending further adjud
necessary amendments to be incorporated into the Act by the legislature.

In any case, if all apartment owners are willing to abide by the 1972 Act and sign the declaration then I don’t think there should be any issues in registering such Association even u
current legal scenario. I have heard that several Form A declarations have been kept pending as of date but I think if all apartment owners are willing to sign then the question o
does not arise and the Association should be allowed to be formed under current law.

Latest Update on West Bengal Apartment Ownership Act – As of January 15th

2018
According to the latest update, the concerned authority is accepting applications for apartment association formation in West Bengal. You need to be prepared with few docum
would be required to get the association formed. Further, you will also need to submit an application with the following documents:

1. Copy of Site Plan

2. Copy of notarized sanctioned building plans
3. Notarized completion certificate (CC) from Local Municipality or local body
4. Power of attorney in favour of one member who will represent the Association
5. Receipt of T.R. Form No. 7
6. Form E
7. 2 sets of notarized Form A, and other necessary documents.

If you or anyone you know need assistance with apartment association, get in touch with HousingNinja.com. (http://www.housingninja.com/) To learn more about apartment ass
read here. (https://advocatechenoyceil.com/2016/12/03/developers-do-not-have-to-maintain-flat-or-apartment-after-registration-is-completed/)

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