How to make the builder disclose the accounts?

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Readers, welcome back! The transaction of sell-purchases of the house is done in accordance with the provisions of the MOFA Act. The MOFA Act prescribes the responsibilities of the builder in detail. The builders of almost all housing projects obtain money from the flat buyers in disguise of Development charges, Infrastructure Charges, Legal Fees, Society Registration Fees, Club House Charges, One Time society Maintenance, Yearly Maintenance etc. However, the builders then do not comply with their responsibility and compel the flat holders to maintain the society by themselves. Furthermore, the builders often do not even give details of the account to flat holders. This results in the misappropriation of funds which are given by the flat holders. In such a situation, Section 5 and Rule 10 of the MOFA Act come to aid flat holders.

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Section 5 of MOFA, makes it mandatory for the builders to keep a separate bank account for the amount deposited in advance or deposit. As per the provisions, the builder is the trustee of the amount taken in advance from the flat buyers. It is mandatory for the builder to spend the money for the same purpose for which it was taken. On the order by the District Deputy Registrar, it is mandatory for the builder to disclose the details of the amount taken in advance. If the builder fails to disclose the true details of the advance amount, a criminal case may be filed against the builder and the order of the District Deputy Registrar is sufficient to prove his guilt. The offender could face up to 3 years in prison for the offense. If the builder avoids disclosing the accounts, the accounts can be obtained by filing an application before the District Deputy Registrar.

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Once the builder discloses the society accounts, the huge amount can be claimed by the flat purchasers. The builders need to maintain 11 types of accounts. They are as follows:

1. The Cash Book.
2. The General Ledger.
3. The Personal Ledger.
4. The Nominal Accounts.
5. The Receipts of Advances and Deposits.
6. The Vouchers of Expenditure.
7. Bank Pass Book.
8. The Register of Flat Purchasers.
9. The Register of Flats.
10. The Statement indicating Receipts and Disbursement (General).
11. The Statement indicating Receipts and Disbursement of Individual Accounts.

• click here to Ensure recovery of your money from builder.

Once the detailed information is received as above, the amount can be claimed by the flat purchasers.

The benefits of disclosure of society accounts by the builders are as follows:

1. It becomes easy to recover the society maintenance of unsold flats from the day the flat owners were given maintenance.
2. The flat buyers can express dissent by categorizing the unnecessary expenses as well as evidence against the builder becomes available to recover the unreasonable expenses.
3. The flat holders who have not paid the society maintenance to the builder that amount can be recovered.
4. If the local authority does not provide the arrangement for water in the project, then the builder would pay the expenses incurred for the water. But builders spend money for water from the advance given by the flat owners. That amount can be recovered by the builder.
5. Usually the builders take an excessive amount from the flat purchasers and it becomes difficult to provide a reasonable explanation for its expenditure.. Therefore, if the above details are obtained, it may be possible to claim the balance amount.

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Flat holders have the right to receive all the services which they have paid for. The MOFA Act provides a mechanism to compel the builders to disclose their accounts. The flat holders can utilize this provision and can claim the money.

It is always possible to file a case under the MOFA Act, and many builders have collected thousands of rupees from a single flat purchaser for the registration of a society. As per the provisions of Section 146 of the Maharashtra Co-operative Societies Act, it is an offense to obtain such a huge amount. Permission to file a case against the builder can be obtained from the Divisional Joint Registrar.

Every flat buyer should be aware of his right, it is your constitutional right not to be robbed at the cost of your dreams. The awareness of rights will restrict the malpractices.

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