Telangana HC stays memo allowing free run to flat owners’ bodies, ET RealEstate

September 7, 2023

HYDERABAD: The Telangana high court has stayed the operation of a memo issued by the state revenue secretary allowing apartment associations in Telangana to register themselves under the Telangana Societies Registration Act by doing away with the need to register under the Cooperatives Societies Act.

Justice Chillakur Sumalatha gave the interim order after hearing a petition filed by Madamanchi Ramesh Babu of Emerald Rainbow Vistas at Moosapet in Hyderabad, which said the memo helped realtors at the expense of residents.

The petitioner also pointed out that the memo was issued after a representation by Confederation of Real Estate Developers’ Associations of India (CREDAI) and without any consultation with residents.

Appearing for petitioner Babu, senior counsel Sripada Prabhakar said the memo issued by the state on August 21 was contrary to the spirit of existing Telangana Apartments Act.

“An executive memo issued by an officer cannot replace the law of the land,” Prabhakar said.

“The memo takes away the rights of flat owners to complain to the co-operative department to take action against errant executive committees of apartment owners’ welfare associations. Even if they misuse the funds of the association and neglect the welfare of residents, no action can be taken against them because there is no such power with the authorities under the Telangana Societies Registration Act. Whereas such power is available to authorities under the Cooperatives Societies Act,” Prabhakar said.

The Telangana Societies Registration Act, 2001, is meant for forming a society which has for its object the promotion of art, fine art, charity, crafts, religion, sports, literature, culture, science, political education, philosophy or diffusion of any knowledge.

This memo is permitting such errant committees to function without any government supervision, Prabhakar said.

The senior counsel also urged the court to look at high-end villas and high-rise housing complexes raised by big builders that have a thousand flats, and where the monthly maintenance fee collected from residents runs into huge sums.

  • Published On Sep 7, 2023 at 09:14 AM IST

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