Suggestions to UDD on amendments to KAOA

Some specific things that need attention are:

1) Most lawyers in Bangalore will advise associations of residents in apartment complexes to register under the Societies Act (In fact, there does not appear to be any case law pertaining to associations registered under the KAOA). This is supposedly because the "competent authority" has not been specifically empowered to carry out his functions. This lacuna needs redressal.

2) In case of stage by stage development of large complexes, like say "Raheja Residency" in Koramangala, perhaps the Act should provide for clear identification of the lands, stage-wise, for allotment of the "undivided share".

3) If a developer is proposing to have a club-house, school, etc, at an edge of the complex, where admission is open to outsiders also, this should be made specific right in the beginning itself. In such cases, if these facilities are drawing up on the utilities' capacities of the main complex (for water supply, power supply, sewage treatment, etc), the cost share should be made clear too.

If I think up more, I'll add later.

I attended the meet convened by the Directorate of Town Planning, yesterday afternoon. Apart from the government officials, those present were Mr Ajit Naik, Mr Anil Naik (CEO, CREDAI), and me. The government officials included some from the Co-operation dept, BDA, and the rest from the Directorate itself (The list may be accessed here - I tried to translate/ interpret the designations, with partial success. The way the list has been filled out is reflective of a cavalier attitude is on the part of the officials - at the next meet, I am going to insist that the list be prepared in English, and the names incorporated too).

On my enquiring with the convenor, Mr Topagi (I presume), about an exercise that the lawyer, Mr Panduranga Nayak, had been entrusted with, he stated that that was part of the independent exercise being undertaken by the UDD, and the report whatever, will not generally be made available to the Directorate. The Directorate was, in addition, required to submit its own recommendations to the UDD, in conjunction with the Co-op dept, and BDA, and present exercise was about that.

Between Mr Ajit Naik and I, we straightaway went on to list the following lacunae in the Acts:

1) Though the KAOA, and KOFA were fairly well drafted documents, whereas Maharashtra (from whose Acts, ours were adopted) had made some twenty odd amendments as required from time to time, ours had remained static.
2) Main lacuna was in not properly empowering the "Competent Authority".
3) Lack of provision for coverage of existing apartment complexes, not originally covered under the KAOA.
4) Irrelevance of mention of apartment complex associations as Companies and Co-operative Societies, as under the KOFA, and KAOA.
5) Methodology for allocation of UDS (undivided share of land) and common utility costs in case of complexes being developed in stages, mixed use high-rises, etc, missing.

I added that Mr Sanjay Vijayaraghavan's letter of 7th March had covered most of the above. When the lady officer, Ms Shantala ( I hope I got it right), stated that they had not received the letter, I handed her a copy. She promptly got enough copies made for circulation amongst the attendees. Copies of Mr Ajit Naik's recommendations were also circulated.

On the point listed at 2 above, while a gentleman from the Co-op dept stated that necessary instructions were being issued to the department officials, I went on to suggest that, with multi-storied apartment complexes becoming the order of the day for living in cities, the function had become very important, and as such it is perhaps time a new empowered regulatory authority was instituted for overseeing it.

Mr Ajit Naik added that the functions can broadly be split into two -

a) technical (largely during the project stage); and
b) administrative (over the entire life).

The enforcement, he suggested, could be exercised through Municipal authorities in urban areas, and DC's office in rural areas

On the point listed at 5 above, it was decided that recommendations will be made by a team comprising PRAJA-RAAG, CREDAI, and Mr Ajit Naik. Mr Anil Naik (CREDAI) is expected to convene a meeting in this regard within the week.

I raised the point about the onus on CREDAI to ensure that all its members follow provisions of the relevant Acts.

Meanwhile, there is a "Real Estate (Regulation and Development) Bill" in the offing, and PRAJA-RAAG is interacting with Federation of Apartment Owners Association, Delhi, in trying to give a final shape to this. More on the subject may be accessed here