THE NEED FOR REFORMATION IN THE CONDOMINIUM SELF-GOVERNANCE LAWS OF INDIA BY: DURGA VALLINAYAGAM
THE NEED FOR REFORMATION IN THE CONDOMINIUM SELF-GOVERNANCE
LAWS OF INDIA
AUTHORED BY: DURGA VALLINAYAGAM
Affiliated with Christ (Deemed to be)
University Delhi NCR Campus
Abstract
This paper seeks to highlight the
lack of comprehensive laws to govern apartment owners' associations in
societies and to protect apartment owners. The crimes usually committed in
these spaces are of a financial nature where the maintenance money contributed
by the whole society is siphoned, elections are not held for years or
collectively contributed money is siphoned under the guise of maintaining the
society. The acts governing these issues lack comprehensiveness and pragmatism.
The solutions to these issues faced by the majority of the middle-class
population in the nation as high-rise buildings dominate the housing market are
the meagre fines imposed as opposed to the crores of siphoned money, or
inaction by the executive owing to no separate body existing for the governance
of condominiums alone lead to crimes happening on a daily basis going
unnoticed.
The author of this paper seeks to
identify the different crimes that take place and the systemic issues that let
such crimes proliferate without any checks and balances.
Introduction
The Apartment Owners Association
(AOA) is a voluntary organisation that is formed in every apartment for the
welfare of the residents of the apartments and owners of the apartments as well
as the office bearers. The association oversees the maintenance services and
regulation enforcement in the society. It also enjoys several legal rights if
registered under the State’s Society Registration Act. On the formation of an
AOA certain bye-laws are enacted on the basis of which the residents of the
apartment consent for the apartment to be governed. Byelaws are considered the
local constitution of the society or locality, the Grundnorm. Every Apartment
Owner Association creates the bylaws as per their respective society in
consonance with the residents of the society. The contributing factors include the
nature of the society, members, size of the society, location and purpose. The
registration of these associations happens under the Society Act. These
associations are not considered a government body under any acts governing
condominium spaces, which leaves out direct government interference in case of
non-adherence to the bylaws. The residents have to reach out in case of an
omission on the part of the office bearers to the registrar themselves which is
a time-consuming process within which time time-sensitive crimes of a financial
nature would be successfully completed. Most of the time the registrars don’t
have enough time to deal with each individual society which leads to
floundering of the bylaws even more commonplace and the infringement of the rights
of innocent apartment owners leaving them with no quick and simple recourse
other than police complaints or litigation. There is no system in place even
after having a multitude of acts converging to govern apartments and
condominiums.
Keywords
Apartments, condominiums, apartment
owners’ association, resident welfare association, The Societies Registration
Act[1], State
Apartment Act[2], and Co-operative
Societies Act[3].
Objectives
1. To understand governance in
Apartments, societies and condominiums
2. To make a point of the various laws
in the condominium self-governance space
3. To analyse the convergence of these
laws
4. To critically analyse the relation
between the omissions by the RWA and the AOA and the punishments prescribed in
the act
5. Solutions to better the model of
self-governance in condominiums
Statement of problem
The governance of condominiums or
apartments has been left to the violation of the residents or such
condominiums, a multitude of laws regulate this space but not in a
comprehensive manner. The Societies Registration Act, Companies Act, State-Apartment
Act, RERA Act, State-apartment promotion of construction, ownership, and
Maintenance Act all these acts talk about the formation of associations for the
maintenance of condominiums, but the penalties placed for omissions or
non-performance of the part of the office bearers are negligible or
non-existent. These associations are not considered a government body as they
form a voluntary basis shielding them from RTI claims as well. Any non-observance
of the by-laws governing the condominiums by the office bearers if brought to
the notice of the registrar is still not acted upon owing to the massive
workload managed by the registrars leaving a gaping lacuna for financial crimes
and non-observance of natural laws of justice to take place out in the open.
Literature review:
There is not an abundance
of literature in the Indian context for the understanding of the practical
application of local condominium self-governance laws or the crossover of
multiple laws in the area of self-governance and municipal and state and
central law application in the sphere of resident welfare. Though there is an
abundance of international papers and articles about the same and many domestic
news articles and judgements which shine a light on the tumultuous condominium
self-governance space in India.
(1) Amnon Lehavi[4]
This article undertakes a comparative
analysis of the self-governance or private collective action as the author
calls it in 3 different countries, namely The United States, Russia and China
and charts a course of how urbanization came to be and the advent of the
apartment and condominiums. The transition from public governance to private
self-governance in these condominiums and the legal, social and cultural issues
it brings along with it. The author concludes by mentioning that for any legal
reform to happen in the condominium self-governance space, all aspects must be
taken into consideration as this is a space where multiple disciplines
converge. There is sparse literature on Indian condominium laws from this
perspective.
(2) Evan McKenzie[5]
this article strives to highlight the
failures of CID (common interest development, a term used in the United States
homologous to RWAs in India) including financial fraud and embezzlement etc.
the article further mentions the failure in associations' capabilities to manage
finances consequently harms all the resident owners. The article while citing
many cases of embezzlement and mismanagement argues the need for increased
state oversight. This is a perspective that can be taken up for the Indian
context as well.
(3) Ron Carlee[6]
This article talks about how HOAs are
effectively private governments now and calls it’s the latest iteration of an
idiosyncratic local form of governance. The author goes on to explain the
fragmentation of local authority and cites the problems that plague all owners’
associations in the US and countries like India as well- namely the association
leaders staying well over their term without any oversight, no oversight on the
management of finances. This article too calls for more regulation to streamline
this process and bring more transparency. As can be explored in the Indian
sphere as well.
(4) UNECE, United Nations Genea,2019[7]
These guidelines for the management
and ownership of condominium housing highlight the democratic practice of the
requirement of compulsory membership of members in owners' associations, for
the proper maintenance of common properties, the document further goes on the
outline the requirement laws to specify the type of services and define the
standards required of these services and provide solutions in case of failure
of performance, the fee structure for the administrative services are to also
be defined. The document reiterates the importance of legislative guidance, the
need for national laws to specify and support the enforcement of consequences
on the failure of the performance of the requisite services, legislation to
specify the roles of management and the requirements and functions and the
duties of the board, further the law according to this document should look
into verifying if the board is legally competent to enter into contracts of
services and utilities. It also talks about how the municipal authorities have
administrative and regulatory responsibilities and how there is a need for
oversight by the government authorities. The document also talks about the
importance of responsible and professional maintenance of the accounts and
communicating the information and having a complete and transparent database of
the accounts and talks a standard of accounting to be maintained. These are
present in Indian legislations for condominium and resident welfare laws but
the implementation is where the lacuna lies.
(5) National Commission on Urbanisation,
New Delhi. [8]
Details and talks about various state
central and municipal legislation and policies governing the development of
urban areas, this details the government bodies made with the intention to
accelerate urban development, they point out the lack of coordination among the
government authorities themselves though they fail to connect the local
self-government authorities like the owners association or resident welfare
associations to this robust system to make it readily accessible to the general
residents. The implementation of the coordination and the requirement of
legislation in this space is much needed.
The thesis talks about the several
problems faced by the owners, tenets, and management of co-operative housing
societies mainly relating to defalcation of money, transfer of title, and
ownership, dishonest management, and utilisation of common spaces but all these
issues are looked into only for west Bengal. The author outlines the genesis
and establishment of housing societies and how under various co-operative
Societies Registration Act the societies
are formed then takes the readers to the specific case study of West Bengal and
talks about some judgements to support his arguments and show the evolution of
the jurisprudence.
(7) S.Lalitha [10]
This news article how flat owners in
Karnataka have filed an FIR against their ex-association member for siphoning
rupees 90 lakhs, a residential complex filed a complaint against their resident
association alleging misappropriation of society funds. The case has been filed
under sec 406 of IPC against the secretary and treasurer along with 11 other
office bearers.
(8) Arsh Behal[11]
According to this news article an FIR
was lodged against the general secretary
and the treasurer of an apartment society in Indirapuram on the allegations of
embezzlement of society common pool funds that were collected from the recharge
of electricity and maintenance charges. The official in charge of this case
holds that by his personal experience, he has come across 61 such embezzlement
cases in the past 6 to 7 months of mishandling of funds amounting to 20 to 25
lakhs.
(9) Greeshma Gopal Giri[12]
This news article talks about how
this particular society’s owners association engages in unsolicited moral
policing or tenets and forceful imposition of bye-laws which a lawyer from
Karela says is against freedom, right to life and right to privacy.
(10)
Ravi Kumar Diwaker[13]
A news article by The Times of
India[14] dated
2019 talks about how the rampant corruption in the resident welfare
associations in Haryana’s societies led to a case being filed in the high court
of Punjab and Haryana. In order to curb corruption and make the process more
transparent the court directed the societies registered under the Haryana
Regulation and registration act,2012 to become compliant with the provisions of
RTI, by July 2, 2019Section
83 of the Haryana Regulation and registration act mandates all the documents
filed by the societies to the district magistrate to be accessible to the
general public under the provisions of RTI this section was enforced by the
High Court, whereby the registered societies have to appoint a public information
officer to provide information to the public under RTI. This judgment considers
the RWA as a government body and therefore brings it within the ambit of RTI.
This law is exclusive to Punjab and Haryana allowing a lacunae to exist for the
RWAs in other states of India to withhold financial records and continue their
corrupt practices
Therefore,
the literature gap is that there is no exploration into the interplay of the
various owner and resident/condominium laws in India and India is severely
lacking in the implementation of the existing laws. There is a need for
stringent and more well-connected laws to be made to strengthen the most basic
level of governance. i.e the maintenance of our homes.
Resident
Welfare Association: an introduction:
A Resident Welfare Association (RWA)
is a non-governmental organization that represents the interests of residents
in urban societies, localities, or communities. Residents form RWAs to
collectively address various issues and improve living conditions. In cities like
Delhi and Mumbai, residential colonies often have RWAs for each block or
locality.
RWAs undertake several
responsibilities, including managing daily problems like water supply and
security, organizing community events, overseeing common facilities, and advocating
for residents' rights. They aim to create a sense of community and ensure the
well-being of residents. RWAs also play a role in liaising with local
authorities, enhancing security measures, and addressing larger issues that
impact the community.
In summary, RWAs are integral to
urban living, fostering community engagement and addressing the diverse needs
of residents in cities with extensive residential complexes like Delhi and
Mumbai.
A Resident Welfare Association (RWA)
plays a crucial role in contemporary societies, particularly in large
communities and townships where numerous families reside together. It is
imperative to have a local body of members responsible for managing the
organization, addressing issues, coordinating events, and ensuring a secure
environment. The RWA provides various services such as soft services, support
services, housekeeping, and technical services like lift maintenance,
electrical power management, and pest control. These services are funded
through an annual budget, collected via Common Area Maintenance (CAM) charges
imposed on all residents.
To operate effectively, the RWA must
adhere to the regulations set by City Development Authorities, Fire and Safety
Departments, State Pollution Control Boards, and other regulatory bodies.
Compliance certificates are issued by these authorities after inspecting the
facilities within the premises. The association is typically recognized as an
Association of Persons (AOP) under the Indian Income Tax Act, consisting of
members elected by the society.
The registration of the Residents
Welfare Association (RWA) is mandatory under the Societies Registration Act
1860, ensuring legal recognition and proper functioning of the association.
It is governed by constitutional
documents like a Memorandum of Association, outlining the rights and goals of
the association. To register under the Registrar of Societies and establish
themselves as a Society under the Societies Registration Act 1860, a minimum of
seven individuals can subscribe to the MOA. Legally, a group of resident owners
can initiate the registration process for an RWA. The enrollment requirements
may vary from state to state, but generally, at least seven individuals within
a state can submit an application for RWA registration at the Jurisdictional
Registrar's Office.
Builder apartments or group housing
societies fall under the purview of the State Apartment Act, allowing the
formation of Apartment Owners Associations (AOA) or Resident Welfare
Associations (RWA) in various states. These associations are sustained by
member subscriptions, which are exempted on the grounds of mutuality, as no one
can generate income from themselves. RWAs, while not official government
entities, can be established by slums and illegal housing colonies to advocate
for citizen interests.
RWAs are typically registered under
cooperative societies acts, necessitating a minimum of fifteen members from a
specific area, or under the state's Apartment Owners Act as an
"association of apartment owners," or under the Societies
Registration Act (either central or state), with a requirement of at least ten
members. These acts also lay down the guidelines for formulating RWA bylaws,
covering aspects like membership criteria, voting rights, and the circumstances
under which RWA officials can initiate legal proceedings on behalf of the
registered society.
Despite the prevalence of Resident
Welfare Associations (RWAs) in slums and unauthorized colonies, government
initiatives aimed at involving RWAs in strategic governance, such as Delhi's
Bhagidari Scheme, often focus only on RWAs in planned neighborhoods. RWAs have
gained increased interest in municipal politics and decision-making since the
early 2000s and continue to grow in significance.
Under the Societies Registration Act
of 1860, an RWA is registered as a voluntary society comprised of individuals.
Once registered, the RWA becomes a distinct legal entity capable of initiating
legal actions or being subject to legal actions through its office-bearers or
appointed representatives. The governing body of the RWA is elected in
accordance with the bylaws outlined in the Memorandum of Association. These
bylaws also dictate the RWA's interactions with its members and third parties.
The Governing Body is expected to exercise its powers responsibly, free from
bias, in accordance with the principles laid out in the bylaws. Both registered
and unregistered RWA can exist.
Benefits of registration of RWA
When an RWA is registered, it
possesses the following powers:
- Addressing and resolving complaints raised by members of
the association.
- Advocating for the collective interests of residents by
bringing concerns to the attention of relevant authorities for the
improvement of shared facilities such as community halls, electricity,
water supply, drainage, roads, streetlights, sanitation, etc.
- Planning and organizing social and community events
periodically.
- Establishing provisions for the welfare of widows,
orphans, disabled individuals, elderly people, and retirees.
- Constructing shelters or supporting the education of
economically disadvantaged or vulnerable community members.
- Approaching relevant authorities to address member
complaints and concerns through proper channels.
- Engaging in legal communication to arrange meetings and
discussions with concerned authorities.
- Coordinating services such as sanitary fittings,
plumbing, electrical work, security, and cleaning for the area.
- Accepting and utilizing legal donations or contributions
to fulfil the society's objectives.
- Contributing to the RWA fund, with the commitment
directed towards the welfare and development of the society's overall
goals.
As opposed to this, unregistered
RWA’s
1. Unregistered RWAs do not have a
formal legal status recognized by government authorities.
2. They may operate informally based on
mutual agreements among residents without any legal documentation or
registration process.
3. Unregistered RWAs may lack legal
standing to enter into contracts, own property, or take legal action in their
own name.
4. They are not subject to the same
regulatory requirements as registered RWAs, such as maintaining proper accounts
or submitting reports to government authorities.
5. While unregistered RWAs may still
provide services and represent the interests of residents, they may face
limitations in terms of credibility and authority, especially in dealings with
external stakeholders.
the key distinction between
registered and unregistered RWAs is the formal legal recognition and status
conferred upon registered associations, which provides them with certain
rights, responsibilities, and legal protections that unregistered associations
do not have.
Rights as a housing society member. i.e.
a member of the society that has RWA:
1.
Right to Access Model Bye-Laws: Members have the
right to receive and understand the society's model by-laws.
2.
Right to Nominate Members: Members can nominate
associate and nominal members for ownership rights, with a nominal fee.
3.
Right to Occupation and Possession: Members have
the right to occupy and possess their dwellings.
4.
Right to Inspect Records: Members can inspect
society records without charge.
5.
Right to Attend AGMs: Members can attend Annual
General Meetings and review committee meeting minutes.
6.
Right to Vote: Each residential unit has one voting
privilege in society elections.
7.
Right to Transfer Shares and Sublet: Members can
transfer shares, and exchange apartments, and sublets with proper notification
and documentation.
8.
Right to Resign: Members can resign from society
membership by giving a three-month notice to the Secretary.
Mismanagement
by RWA and its implications
By virtue
of the societies’ act and the model bylaws in accordance with which the laws
governing the residents of an apartment are to be made, the above-mentioned
rights are guaranteed. Along with the already mentioned rights the
constitutional rights remain vested in the residents. The issue arises when
these voluntary bodies governing people at the grassroots level in the urban
spaces go beyond their statutory powers and infringe on the rights the others.
The recourse available to them and the procedure for availing of the recourse
is tumultuous and time-consuming which puts the innocent residents in a
position where they are left with no practical options for recourse.
A plethora
of mismanagement in the governance of apartments and condominiums can take
place like overcharging of gas or electricity prices, to siphoning of crores of
money that the present infrastructure dealing with the issues of the RWA cannot
handle. The institutional setup for the remedying of mismanagement and flouting
of the bylaws is too fragile to deal with the extent of crimes committed by the
office-bearers.
Some of
the mismanagement infringing the rights of the residents can be seen in the
form of
Restricting
entry to individuals familiar to you or infringing on your guest's privacy by
selectively requesting excessive personal information.[15]
In severe
instances of wrongdoing, the governing body might also be involved in corrupt
activities such as extortion, bribery, and embezzlement of funds. For instance,
overcharging residents for services like repairs to illicitly benefit from the
service provider could occur. Occasionally, this is accompanied by an implied
threat that non-payment could lead to harm or inconvenience for the resident.
The most common issue that arises is of non-conduction of elections and holding
of office even after the end of the term.
The form
of wrongdoing where illicit benefit is derived from collusion with the service
provider by charging the residents higher is all too common.
Corruption
in Resident Welfare Associations (RWAs) in India is a complex issue that varies
in its manifestation and extent across different societies and regions. While
many RWAs are formed with the intention of ensuring the smooth functioning and
betterment of residential communities, instances of corruption and
mismanagement do occur.
Here are
some common forms of corruption seen in RWAs:
- Misappropriation of Funds:
This is one of the most common forms of corruption in RWAs. Funds
collected from residents for maintenance, security, and other purposes may
be misused or siphoned off by RWA members for personal gain.
- Bid Rigging: In cases where
RWAs undertake construction or maintenance projects, there may be
instances of bid rigging where contracts are awarded to favoured vendors
at inflated prices, leading to financial losses for the community.
- Nepotism and Favouritism: RWA
positions and contracts may be awarded based on personal relationships
rather than merit, leading to inefficiency and unfair practices.
- Lack of Transparency: Many
RWAs lack transparency in their decision-making processes and financial
transactions, making it difficult for residents to hold office bearers
accountable.
- Extortion and Bribery: In
some cases, RWA office bearers may resort to extortion or demand bribes
from residents for providing basic services or resolving issues related to
property disputes, parking, etc.
- Discrimination: There have
been instances where RWAs have been accused of discriminating against
certain residents based on factors such as religion, caste, or
socio-economic status.
Some cases
of real-life wrongdoings are as follows:
1. Resident
Welfare Associations (RWAs) display widespread corruption within the offices,
asserting that elections are unfairly influenced, with administrators and
returning officers appointed to favour specific individuals.
2. Officials are also accused of misappropriating
funds and imposing substantial fees on residents without delivering
corresponding benefits or letting the residents exercise their rights.[16] and the condominiums managed by these
associations generate turnovers amounting to hundreds of crores of rupees.
3.
Upon requesting an examination of records, which
includes an attorney's bill purportedly paid for an exorbitant and
disproportionate sum to defend a case against the association by a member,
there are suspicions that a significant portion of the funds may have been
utilized for bribery. The president asserts innocence but declines to present
the documents for scrutiny.[17]
4.
Queries about financial records were raised, but
there is a reluctance to disclose financial information or audit reports to the
residents. Subsequently, the former association members are now advocating that
only flat owners listed in the agreement should participate in meetings,
asserting that it is unnecessary to share financial details with everyone. Upon
further investigation, a resident discovered that contracts for amenity repairs
were being awarded in an unscrupulous manner. Multiple quotes were not being
obtained, and even in cases where quotes were sought, they were selectively
leaked to a single contractor who was charging exorbitant prices for the work.[18]
24 lakhs worth of loss for the residents.
5.
Representatives from 50 resident welfare
associations (RWAs) staged a protest on Sunday morning, expressing
dissatisfaction with the inefficiencies in the district and state registrar's
offices. They submitted a memorandum to the Deputy Commissioner of Gurugram,
urging the resolution of their concerns through the intervention of the Chief
Minister's office. In the memorandum submitted to the deputy commissioner, the
demonstrators conveyed that the district registrar's office was significantly
influenced by politicians and influential real estate developers. This
influence, they argued, hindered decisions that would benefit homeowners,
buyers, and the RWAs advocating on their behalf.[19]
6.
A resident, who did not wish to be named, said that
many RWAs did not have a democratic system. “In fact, on most occasions, they
run the sectors tyrannically and with no transparency,” he said.[20]
Challenges
in the path of an ideally functioning RWA
There have
been challenges and failures in effectively tackling corruption within Resident
Welfare Associations (RWAs) in India. Despite efforts to address this issue,
corruption persists in many RWAs across the country. Several factors contribute
to the failure in addressing corruption:
- Lack of Regulatory Framework:
There is often a lack of clear regulatory frameworks governing the
functioning of RWAs. This absence of comprehensive guidelines makes it
difficult to hold RWAs accountable for their actions and fosters an
environment where corruption can thrive.
- Weak Enforcement: Even when
regulations exist, enforcement mechanisms may be weak or ineffective.
Regulatory bodies may lack the resources or authority to monitor RWAs
effectively, allowing corrupt practices to go unchecked.
- Culture of Impunity: In some
cases, there is a culture of impunity where those engaged in corrupt
activities within RWAs face little to no consequences for their actions.
This lack of accountability emboldens corrupt individuals and perpetuates
a cycle of misconduct.
- Lack of Awareness and
Participation: Many residents may be unaware of their rights or feel
apathetic towards RWA affairs, leading to a lack of oversight and accountability.
Additionally, marginalized communities or residents with limited resources
may face barriers in challenging corruption within RWAs.
- Political Interference: In
some instances, RWAs may be influenced or controlled by political
interests, further complicating efforts to address corruption. Political
patronage can shield corrupt individuals from scrutiny and undermine
attempts at reform.
- Complexity of Corruption:
Corruption within RWAs often takes various forms and may involve collusion
among multiple individuals. Investigating and prosecuting such cases can
be challenging, particularly when there is a lack of evidence or witnesses
willing to come forward.
Addressing
corruption within RWAs requires a multifaceted approach that involves
regulatory reforms, strengthening enforcement mechanisms, promoting
transparency and accountability, and fostering active citizen participation.
Efforts should also focus on raising awareness among residents about their
rights and encouraging them to actively engage in the governance of their
communities. Additionally, there is a need for greater collaboration between
civil society organizations, government agencies, and residents to combat
corruption effectively.
The above
mentioned are just some of the instances in the past year, many go unreported
and worse unnoticed by the residents owing to the simple fact that they are
often unaware of their rights and the crimes that the office bearers commit
under the guise of the serving the society.
The most
prevalent crime is the siphoning of money by colluding with the contractors or
service providers, the remedy for the same is to raise an complaint to the RWA
in itself to be transparent to reveal the flow of funds, unfortunately many RWA
will refuse or only provide you with doctored documents that help them save
face.
RWA’s are
further a voluntary body and not a statutory body thereby removing it from the
purview of RTI’s, the information with the RWA’s cannot be demanded by the
formal request of filing for an RTI.
The next
step of recourse available to the residents is to approach the registrar of
societies, the societies and the apartment owners act through its sections
specifies the penalties there office-bearers have to bear in case of non-observance
of the bylaws, these penalties owing to the fact that these bodies are formed
on a voluntary basis are very menial but with the change in times and the
increase in greed in people the penalties imposed are no more proportional to
the scale of crime being committed.
The
residents who wish to raise a complaint to the registrar of societies have to
wait months on end for their complaint to be heard by then the crime is grown
exponentially in scale and the finances involved in the crime grows exponentially
as well, most of the times the registrar being only one for one state and
looking after all types of societies and their registration and functioning
often don’t have time to entertain singular issues. Each leaves the residents
with no easy recourses but either approaching the police or going for
litigation.
Litigation
is very times consuming and a costly affair, which is not a step all residents
will be comfortable going towards. And approaching the police, some may
approach the police but internal politics and bribes end up keeping the same
perpetrators in power. Leaving the innocent residents with means of battling
the offenders.
Recommendations
Addressing
corruption in RWAs requires a multi-pronged approach involving legal reforms,
greater transparency, and active participation from residents. Some steps that
can be taken include:
- Implementing stricter
financial oversight mechanisms to ensure proper utilization of funds.
- Requiring RWAs to maintain
transparent records of their activities and finances, which should be
accessible to all residents.
- Encouraging residents to
actively participate in RWA elections and hold office bearers accountable
for their actions.
- Establishing independent
oversight bodies to investigate allegations of corruption and misconduct
within RWAs.
- Promoting awareness and
education among residents about their rights and responsibilities within
their residential communities.
Ultimately,
tackling corruption in RWAs requires a concerted effort from both residents and
regulatory authorities to promote accountability, transparency, and good
governance. There are
presently states who are actively taking initiatives to combat these financial
crimes in self-governance in residential areas an example for that would the
Haryana government’s new initiative in introducing a bill to make RWA financial
transactions more transparent[21],
another initiative has been taken by the Madhya Pradesh government aims to
secure the methods of democracy by the introduction of the new bill in making.
Other state and the center can take
inspiration from these initiatives, but the best solution would be take
cognizance of the issue and acknowledge by way of introducing a central
legislation or an amendment in the societies act to have an impact on all of
the nation.
Research Methodology:
The author shall be engaging in a
mixture of doctrinal (qualitative) and non-doctrinal (empirical/quantitative)
research to understand the various laws applying to the self-governance of
condominiums and to understand the grassroots-level implications and execution
of the same. The author shall be employing the use of both primary and
secondary sources of information by way of the bare acts and commentaries and
other research papers on the same for the conduction of qualitative research.
For the conduction of quantitative
research, the author shall procure primary data by researching already existing
surveys about apartment complexes and condominiums.
The universe of this study is the
state of all of India as the author shall study the society's act in consonance
with the generalized sections commons to all state Apartment Act.
Limitations:
RWAs (Resident Welfare Associations)
in India encounter numerous challenges and obstacles. During the course of this
research paper, the author observed a scarcity of research papers and news
articles on the topic of RWAs in India. Consequently, there is an opportunity
for further investigation into the issues and operations of RWAs in the Indian
context
Conclusion:
As understood by this paper, the
flouting of the bylaws by the office-bearers in order to siphon money, the
collusion with service providers and the police and political support has all
be proved by the news testimonials of aggrieved residents. An comprehensive and
proportionate action is required to combat this lacunae and put a stop to this blatant
disregard to constitutional and democratic values at grassroot level.
[1] Societies Registration act, 1860
[2] UP Apartments act, 2010
[4] Amnon
Lehavi, Law, Collective Action and Culture: Condominium Governance in
Comparative Perspective, 23 Asia PAC. L. REV. 5 (2015).
[5]
Evan McKenzie, Private Covenants, Public Laws, and the Financial Future of
Condominiums, 52 UIC L. REV. 715 (2019).
[6] Ron
Carlee, Homeowners Associations: One More Idiosyncrasy in U.S. Local
Governance, PAR , Vol. 71, No. 4 (2011)
[7] UNECE, guidelines on the
management and ownership of condominium housing. 17,18,37 (2019).
[8] NCU, New Delhi, Report of the
National Commission on Urbanization, Vol lll, 369-396
[9] The University of Burdwan, Laws relating to group housing an empirical
study with reference to West Bengal, 64-73 (2005)
[10] The new Indian
express, Karnataka flat owner gets FIR filed against ex-association
members for misusing Rs 90 lakh, (17th July 2023)
https://www.newindianexpress.com/states/karnataka/2023/jul/17/karnataka-flat-ownergets-fir-filed-againstex-association-members-for-misusing-rs-90-lakh-2595552.html
[11] the times of India, FIR filed
against general secretary, treasurer for embezzling from the maintenance funds,
(23 June 2017)
https://timesofindia.indiatimes.com/city/ghaziabad/fir-filed-against-general-secretary-treasurer-for-embezzling-from-maintenance-
funds/articleshow/59284605.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst&pcode=461
[12] the times of india, apartment
owners association cant enforce bylaws, (17 june 2020)
https://timesofindia.indiatimes.com/city/kochi/apartment-owners-associations-cant-enforce-bylaws/articleshow/77018276.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst&pcode=461
[13] times of india, is RTI a solution
for curbing corruption in RWA, (15 june 2019)
https://timesofindia.indiatimes.com/business/india-business/is-rti-a-solution-for-curbing-corruption-in-residents-welfare-associations/articleshow/69800448.cms
, Ravi Kumar Diwakar / Magic bricks /
[15] Editorial, Express View on RWAs
and prejudice: Pettiness of power, the Indian Express, June 27, 2023, 6:00 IST
https://indianexpress.com/article/opinion/editorials/express-view-on-rwas-and-prejudice-pettiness-of-power-8687578/
[16] Bhel, Abhishek, RWAs allege
registrar offices in Ggm, F’bad functioning arbitrarily, 17th April,
2023, 12:47 AM
https://www.hindustantimes.com/cities/gurugram-news/gurugram-rwas-allege-corruption-in-district-registrar-s-offices-hampering-functioning-and-favoring-vested-interests-officials-refute-claims-101681672669555.html
[17] Kodhandaraman, Loganathan, Local
circles, Jan 31, 2023, https://www.localcircles.com/a/public/post/corruption-in-resident-welfare-associations/8378742cy
[18]
https://www.kaanoon.com/legal-questions/427566/corruption-happening-within-rwa
[19] Bhal Abhishek, Free district
registrar office from political interference, say 50 Gurugram RWAs, Hindustan
times, Oct 2 2023, 5:26 AM,
https://www.hindustantimes.com/cities/gurugram-news/free-district-registrar-office-from-political-interference-say-50-gurugram-rwas-101696184405127.html
[20] Sinha Meenakshi, Times of India,
Sep 19 2015, 04:44 IST,
https://timesofindia.indiatimes.com/city/noida/people-stress-transparency-as-rwa-body-goes-to-polls/articleshow/49020327.cms
[21] TNN, times of India, MLA says will
introduce a bill for accountability of RWAs, Jan 24, 2021, 09:09 IST
ttps://timesofindia.indiatimes.com/city/gurgaon/mla-says-will-introduce-bill-for-accountability-of-rwas/articleshow/80427875.cms