Common Issues Faced by Apartment Associations in Bengaluru

Common Issues Faced by Apartment Associations in Bengaluru

Apartment living in Bengaluru, while popular for its convenience and community-oriented design, is often marred by several legal and operational challenges. These issues typically arise between apartment owners, associations, and developers, leading to disputes and inefficiencies.

1. Delayed Formation of Apartment Owners’ Associations (AOAs)

Developers frequently delay or avoid facilitating the creation of AOAs. This leaves residents without a formal body to manage common resources and advocate for their collective rights. The lack of an AOA results in confusion over property ownership documents, management, maintenance of shared amenities, and weak representation in disputes with developers or civic authorities.

Under Section 10 of The Karnataka Ownership Flats (Regulation of the Promotion of Construction, Sale,. Management and Transfer) Act, 1972 which creates a mandatory obligation on the Landowner and Developer (Promoters) to form an Association as soon as a “minimum number of persons required to form a co-operative society” i.e. seven apartments. Failure to form an association is punishable offence under the Act. Our Firm has filed a criminal case against a Builder for non – formation of association and cognizance has been taken by the Court.

2. Non-Payment of Maintenance Fees

Payment of maintenance is obligatory under The Karnataka Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1972 which states that every person who has entered into an agreement to purchase a flat shall pay the price, the municipal taxes, water and electricity charges, ground rent (if any), and other public charges payable in respect of the flat. The Apartment Owner must cooperate with the formation of the Association as well.

However, it has become a recurring challenge in Apartments where some hostile residents do not pay their share of maintenance charges. This disrupts the budget required for regular upkeep in the Apartment, impacting the quality of essential services such as cleaning, security, and facility repairs.

3. Failure to Deliver Promised Amenities

Developers often advertise premium amenities such as club house, swimming pools, clubhouses, or landscaped gardens to attract buyers but fail to deliver these amenities. In many cases, the delivered amenities are substandard or incomplete. Despite the Apartment Associations expressing anguish to the Developers, the Builders fail to deliver the amenities, leading to Apartment Associations filing cases in the RERA Court or Consumer Court.

4. Construction Defects and Poor Maintenance

After possession, residents often encounter structural defects in the buildings, such as water seepage, cracks, and faulty electrical systems. Common areas like staircases, elevators, and parking spaces also suffer from neglect, causing frustration and safety concerns. Most Developers provide 1 year defect liability period. However, in cases where the building structure itself is inherently defective, the Apartment owners can prosecute the Builders.

5. Sewage Treatment Plant (STP) Problems

Another set of problems are with STPs in Bengaluru. Inefficient or poorly maintained STPs  causing environmental pollution, foul odours and compliance violations. The Developers are obligated to install a sewage treatment plant in the Apartment Complexes/ Commercial complexes to reuse the sewage water. The Developer needs to apply for Consent for Establishment (CFE) at the time of construction and before handing over the Apartment apply for Consent for Operation (CFO). Ideally the developer must maintain the STP for a minimum of 5 years as per the rules. The Developer must also maintain a logbook and regularly upkeep the STP. Failure to perform may result in prosecution by the Pollution Control Board.

6. Internal Disputes in Apartment Associations

Conflicts in Associations often arise in Associations i.e. during the election of office-bearers, Allegations of favoritism, lack of transparency, or procedural irregularities. Apart from the above, Lack of transparency in the handling of funds collected for maintenance and development is a frequent complaint. Malpractices in Apartment Associations like misuse or misallocation of funds, creates distrust.

7. Non-Compliance with OC / CC/ Handing over documents to Apartment Associations

Developers sometimes fail to secure crucial documents like the Occupancy Certificate (OC) or Completion Certificate (CC) before handing over apartments to buyers and handover the Apartment without OC. The non-compliance of the legal status of the apartments gives rise to BESCOM  not giving the electricity connection or BWSSB disconnecting the water lines. Builders promise to give OC but never do so. The occupancy of such building itself is illegal and exposes residents to penalties and potential eviction notices from BBMP.

8. Deviations from Approved Building Plans

Another common issue in Bangalore is the unauthorized alterations to the original building plans by Developers, such as converting common spaces into commercial units or adding additional floors, additional structures, to make unlawful gains. These deviations are illegal and a demolition notice could be issued by the Municipality.

Issues in any apartment society diminish the quality of life for residents and add on legal and financial burden. An Apartment buyer purchases an apartment for better standard of living but issues mentioned above can cause disruption in their peaceful life. To mitigate these challenges, one must always scrutinize the affairs of the Developer or Apartment Association related documents, as the Associations are collective bodies wherein each apartment owner has undivided share in the land and rights plus responsibilities to contribute to the betterment of their society.