Section 14 – THE RAJASTHAN APARTMENT OWNERSHIP BILL, 2015

Association of Apartment Owners and bye-laws relating thereto

(1) There shall be an Association of apartment
owners for the administration of the affairs in relation to the
apartments and the property appertaining thereto and for the
management of common areas and facilities:
Provided that where any area has been demarcated for the
construction of several buildings, whether such area is called a
block or pocket or by any other name, there shall be a single
Association in such demarcated area.
(2) Every promoter shall,-
(a) in case where ten or more than two-third,
whichever is higher, of apartments in a building
had been allotted, sold or otherwise transferred
before the commencement of this Act, within six
months of such commencement; and
(b) in any other case, within six months from the date
on which ten or more than two-third, whichever is
higher, of the apartments in the building are
allotted, sold or otherwise transferred,
make an application in the prescribed form and manner to the
Registrar for registration of the Association with the persons, who
have been allotted, sold or otherwise transferred apartments, as
members.
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In case, the promoter fails to make an application to the
Registrar for registration of Association, the persons who have
been allotted, sold or otherwise transferred apartments shall apply
for registration of the Association:
Provided that an Association of apartment owners
registered under the provisions of the Rajasthan Societies
Registration Act, 1958 (Act No. 28 of 1958) before the
commencement of this Act shall be deemed to be the Association
for the purposes of this Act, if its bye-laws are in consonance with
the provisions of the model bye-laws prescribed under this Act or
they are amended to bring them in consonance with the provisions
of the model bye-laws prescribed under this Act within six months
from the commencement of this Act.
(3) The promoter shall continue to be the member in
relation to an apartment not allotted or transferred till such
apartment is allotted or transferred to a person who shall become a
member of the Association on such allotment or transfer without
any further action on his part and be responsible for paying the
annual maintenance charge or any other charge decided by the
Association:
Provided that the registration of any Association shall be
without prejudice to any action that may be taken against the
promoter for violation of any provision of law in relation to
erection of buildings.
(4) On receipt of an application under sub-section (2), the
Registrar, after satisfying himself that the proposed Association
meets the requirements of the provisions of this Act, shall,
notwithstanding anything to the contrary contained in the
Rajasthan Societies Registration Act, 1958 (Act No. 28 of 1958),
register the Association as a society under the Rajasthan Societies
Registration Act, 1958 (Act No. 28 of 1958) and the provisions of
the said Act shall apply to such Association mutatis mutandis, as
far as they are not inconsistent with the provisions of this Act.
(5) The Association shall, at its first meeting, make its byelaws in accordance with the provisions of the model bye-laws
prescribed under this Act and no departure from, variation of,
addition to, or omission from, the model bye-laws shall be made
except with the prior approval of the Competent Authority and no
such approval shall be given if, in the opinion of the Competent
Authority, such departure, variation, addition or omission will have
the effect of altering the basic structure of the model bye-laws.
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(6) The bye-laws framed under sub-section (5) may provide
for the following, among other matters, namely:-
(a) composition of the governing body;
(b) election, from among apartment owners, of the
members of the governing body by the members of
the Association, with provision that one-third of
the members of the governing body shall retire
annually;
(c) powers and duties of the governing body;
(d) honorarium, if any, of the members of the
governing body;
(e) method of removal from office of the members of
the governing body;
(f) method of calling meetings of the Association and
of the governing body and the number of members
of the Association or the governing body who shall
constitute a quorum for such meetings;
(g) election of a President of the Association from
among the members of the Association, who shall
preside over the meetings of the Association and
of the governing body;
(h) election of a Secretary of the Association from
among members of Association, who shall keep
two separate minutes books, one for the
Association and the other for the governing body,
pages of each of which shall be consecutively
numbered and authenticated by the President of
the Association, and shall record in the respective
minutes books the resolutions adopted by the
Association or the governing body, as the case
may be;
(i) election of a treasurer from among the members of
the Association, who shall keep the financial
records and account books of the Association;
(j) maintenance, repair and replacement of the
common areas and facilities and payment therefor;
(k) manner of collecting from the apartment owners or
any other occupants of apartments, their share of
common expenses;
(l) engagement and removal of persons employed for
administration, management, maintenance, repair
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and replacement of the property and the common
areas and facilities;
(m) restrictions with regard to the use and maintenance
of the apartments and the use of the common areas
and facilities, as may be necessary to prevent
unreasonable interference in the use of each
apartment and of the common areas and facilities
by the several apartment owners;
(n) any matter which may be required by the State
Government to be provided for in the model byelaws for the proper or better administration of the
property; and
(o) any other matter as may be required to be, or may
be provided for in the model bye-laws.
(7) The bye-laws framed under sub-section (5) may also
contain provisions, not inconsistent with the provisions of this
Act,-
(a) enabling the governing body subject to the
building regulations to retain certain areas of the
building for commercial purposes and to grant
lease of the areas so retained, and to apply
proceeds of such lease for reduction of the
common expenses for maintaining the building
and the common areas and facilities, and if any
surplus is left after meeting such expenses to
distribute such surplus among the apartment
owners as income;
(b) relating to the audit of the accounts of the
Association and the administration of the
property;
(c) specifying the time at which and the manner in
which annual general meetings and special
meetings of the Association shall be held and
conducted;
(d) specifying the time at which and the manner in
which the annual report relating to the activities
of the Association shall be submitted;
(e) specifying the manner in which the income
derived and expenditure incurred by the
Association shall be dealt with, or, as the case
may be, accounted for.

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