Legal Question in Real Estate Law in India

12.03.2013

Dear Sir / Madam,

The following are the interpretations / definitions as per the Maharashtra State Co-operative Societies Act and Rules :

3.(iii) "Chief Promoter" means the person who is elected by the Promoters, in their first meeting, or in their subsequent meetings in case the post of the Chief Promoter lies vacant till the first general body meeting;

3.(xii) "Promoter" means a person, who has signed the application for registration of the Society and;

3.(xiii) "Builder-Promoter" means a person who constructs and causes to be constructed a block of building of flats or apartments for the purpose of selling some or all of them to other persons, and includes his assignees; and where the person who builds and the person who sells are different persons, the term includes both.

The builder is usually the Chief Promoter of the Society till the conveyance of the plot of land is done in the name of the Society. Till that time, the Chief Promoter has to run and manage the property.

In simple terms, if the Builder has already sold more than 50% of the flats in the building, although he assumes the post of the Chief Promoter, he is not entitled to charge Non Occupancy Charges till the formation of the Society.

Regards,