Sunday, July 21, 2019

RWAs formation is Mandatory

Resident Welfare Association (RWA) is an association of people who own houses in a particular society, which is responsible for the day-to-day functioning of the complex. The real estate act says that a developer has to hand over a housing project to the residents within a few months from the time he obtains the Occupancy Certificate (OC)

The real estate act pins the responsibility on developers and builders for providing and maintaining essential services, as specified in the service-level agreements, on reasonable charges, till the residents' association can take over.

RWA UNDER RERA

The guidelines in the Real Estate (Regulation and Development) Act, 2016, say that a Resident Welfare Association (RWA) must be established in a housing society within three months from the time that a majority of the houses there have been booked. If a developer does not take steps to form an RWA for such a society, the legal owners can themselves form such a body.

As per RERA guidelines issued by the Maharashtra government, builders or developers are obliged to form a RWA and trans fer the “right of common areas“ to that association after the sale of 50% of the apartments or con dominium in the project.

In the Delhi NCR regions like Noida and Gurgaon, residential colonies of housing societies have a RWA for each colony or society and each block or pocket.

HOW IS A RWA FORMED?

The developer of a project and its residents can mutually call for an annual general body meeting to form a RWA.

The Societies Registration Act, 1860, mandates that at least 10 people (or residents) should give their names to the memorandum of association, who would then be eligible to occupy posts in the management body. If more residents are interested in becoming members, elections have to be conducted. This association can make rules based on suggestions from residents and according to the rules. Known as society bylaws, every housing society has different set of laws governing it, which are binding on each and every resident (and tenants, too).

Once the ad hoc committee or a management committee is in place, the next step is to verify documents, books of accounts, and facilities promised by the developer.

Among the important documents that the committee must scrutinize are Occupancy Certificate (OC), fund details, books of account, property title, and deposits received for facilities like club, gym, spa, etc.

Resident Welfare Associations (RWAs) are typically registered under the Societies Registration Act, 1860 (in every state the act may have state-level amendments). They are governed by constitutional documents like Memorandum of Association which contains their objectives and functions.

Anil Sharan, executive member of the RWA of G Block, Preet Vihar, Delhi, says that they are voluntary associations made by residents and that they do not have statutory powers. For example, a Resident Welfare Association cannot curb your right to hold or exercise rights over the property you own and will have its powers restricted to the contribution of sums for maintenance, the organization of workshops, cultural functions, etc.

TYPES OF RWAS

There are two types of RWAs: Resident Welfare Associations and Co-operative Housing Societies.

Compared to the power of co-operative housing societies, the powers of Resident Welfare Associations are limited. They have no statutory powers as they are voluntary organizations created to manage the residents' interest. Co-operative Housing Societies have authority like the power to give permission or refuse transfer of a multi storey flat by a member.

GOVERNING BODY

The governing body includes office bearers like president, vice-president, general secretary, secretary, treasurer, finance advisor and executive members.

A RWA should have a governing body of the society to look after and manage the day-today affairs of the society. Any house owner in a society, except tenants, can be a member of its RWA.

Source :- The Times of India | October 16, 2017