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Promoter Has Not Formed the Society: Section 10 MOFA and the Competent Authority

When flat-takers wait for the promoter to form a society, Section 10 of the Maharashtra Ownership Flats Act lets them approach the Competent Authority. What the Act provides.

Quick answer Section 10 of the Maharashtra Ownership Flats Act, 1963 requires the promoter to apply to the Registrar to register the flat-takers’ society once enough persons have taken flats. If the promoter does not apply within the prescribed period, the proviso to Section 10(1) lets the Competent Authority, on an application from the flat-takers, direct the District Deputy Registrar, Deputy Registrar or Assistant Registrar to register the society.

The promoter’s duty

Section 10(1) provides that once the number of persons required to form a co-operative society or company have taken flats, the promoter must apply to the Registrar within the prescribed period for registration of the flat-takers’ organisation. The promoter must also join in the application in respect of flats not yet sold. Joining does not take away the promoter’s right to sell the remaining flats.

If the promoter does not apply

The proviso to Section 10(1) provides a route for flat-takers. On their application, the Competent Authority may direct the District Deputy Registrar, Deputy Registrar or Assistant Registrar to register the society. Before doing so, the Competent Authority must verify the authenticity of the applicants and give the promoter a reasonable opportunity of being heard.

Question What the Act provides
Who must apply to register the society? The promoter, within the prescribed period, once enough persons have taken flats (Section 10(1)).
Who steps in if the promoter does not? The Competent Authority, on an application from the flat-takers (proviso to Section 10(1)).
What does the Competent Authority check first? The authenticity of the applicants, and the promoter is given a reasonable opportunity of being heard.
Who registers the society? The District Deputy Registrar, Deputy Registrar or Assistant Registrar, as directed by the Competent Authority.
Can a society be formed if the building is under the Apartment Ownership Act, 1970? No. If a Declaration is executed and registered under that Act, the promoter informs the Registrar and no co-operative society or company is formed (Section 10(2)).

Who is the Competent Authority

Under Section 5A the State Government appoints a Competent Authority for specified areas, not below the rank of District Deputy Registrar of Co-operative Societies. The same officer exercises powers under Sections 5, 10, 11 and 11A.

Why registration matters for the next step

Section 11(1) requires the promoter to convey the land and building to the organisation of flat-takers, which may be a registered co-operative society, a company, or an association of flat-takers or apartment owners. If the promoter does not convey, Section 11(3) onward provides the deemed conveyance route. See Deemed Conveyance in Maharashtra: When the Builder Won’t Transfer the Land to Your Society.

Related: Society Disputes in Old MHADA Colonies.

Common questions

Can flat-takers apply themselves?

Yes. The proviso to Section 10(1) allows the Competent Authority to act on an application from the flat-takers when the promoter has not applied within the prescribed period.

Is the promoter heard?

Yes. The Competent Authority must give the promoter a reasonable opportunity of being heard before directing registration.

Does the promoter lose the right to sell unsold flats?

Section 10(1) says the promoter’s right to sell the remaining flats is not affected by joining the application.

Does this apply to RERA-registered projects?

Section 1A says the Act generally does not apply to RERA-registered projects, except Sections 5A, 11A, 13B, 13C, 13D and the provisions on the Competent Authority. Section 10 is not in that list.

Sources

This guide is general information based on the text of the Act. It is not advice on any particular dispute. Rules, forms and time limits prescribed under the Act are not covered here.

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