Formation of an Apartment Owners Association in Hyderabad, Andhra Pradesh

Hyderabad is a rapidly growing city and the IT capital of Andhra Pradesh. Real estate in Andhra Pradesh, or for that matter, Hyderabad, is growing rapidly, with an increasing demand for residential apartments and flats.

Talking of flats and apartments, it is imperative that an apartment complex has a registered apartment association in order to ensure smooth functioning of the society. The Apartment Owners Association takes care of the management of common apartment areas and all welfare requirements of the residents. The Apartment Owners Association elects a Managing Committee, which is responsible for collecting maintenance fees and using it for the upkeep of common amenities, such as the lift, club house, gym, apartment security, and various other issues.

However, the Apartment Owners Association needs to be registered to be recognized as a legal body and exercise legal rights. While Apartment Associations need not be mandatorily registered, it is certainly advisable to register the association of your apartment. Here’s the procedure for the formation of an Apartment Association in and Hyderabad, Andhra Pradesh.

There are various laws under which the Apartment Owners Association can register itself in Andhra Pradesh- the Societies Registration Act, 1960, which is a central act applicable to all states in India, other than Jammu and Kashmir; A.P Societies Registration Act, 2001, which is the registration act specifically released for the state of Andhra Pradesh. This act extends to the entire state.  Only a group of seven or more people, who work for public interest at large, such as promotion of art, culture, literature, religion, science, philosophy, can register under this act.; or The Andhra Pradesh Apartments (Promotion of Construction and Ownership) Act, 1987. In fact, most apartment associations in Andhra Pradesh are registered under this act.

 According to this law, Association of Apartment Owners is defined as “all the apartment owners acting as a group in accordance with the provisions made by it in the bylaws”. The builder, who has constructed the apartments for the purpose of selling them, is called the “Promoter” according to this law. Under this law, the promoter has to submit in writing the date by which the apartments will be handed over to the apartment owners, as well as a list of common properties and documents that will be handed over to the Apartment Association.

According to The Andhra Pradesh Apartments (Promotion of Construction and Ownership) Act, the common property of the Association includes:

  • The land on which the building is located.
  • Stairs, entrances, fire-exits, elevators, terraces, lobbies, halls, basements, parking lots, cellars, children’s playing grounds etc.
  • Premises for the lodging of persons employed for the management and maintenance of the building.
  • Installation of central cervices such as water, electricity, gas etc.
  • All apparatuses and installations for general use such as tanks, bore wells, and pumps.

  To register under the A.P Societies Registration Act, 2001, or Andhra Pradesh Apartments Act, 1987, a set of documents along with a formal application needs to be submitted to the Registrar of the District. The application must have the signature of all the applicants as well as that of a witness. The following documents need to be attached with the application:

A Memorandum of Association of the society, which must include:

  1. The name of the society
  2. The aims and objectives of the society
  3. The name and occupations of the members in the committee
  4. The person in the committee who is authorized to correspond with the Registrar of the District
  5. The by-laws of the society stating the membership eligibility; process for electing the Managing Committee; rules for holding meeting, quorum, functions and responsibilities; the office bearers with their responsibilities, election and removal process; types of fund raising, appointment of auditors, and other matters relating to internal management and dispute resolution.

All the documents submitted must be typed or printed and signed by all the applicants. All the persons who sign the application papers are considered the original members of the Association. However, later on, more members can be added to the Apartment Owners Association. It should be noted that it is mandatory for all owners of an apartment complex to become members of the Association.

Once the memorandum and by-laws are found to be legally valid, and the required registration fee has been paid, the Registrar issues the Apartment Association a Certificate of Registration, which proves that the society is legally registered.

However, it is vital to note here that the law requires a signed document to be registered within four months from the date of signing of the document. If it exceeds the given timeline of four months, a penalty is levied as late registration charges.

After the Association is registered it can take legal action on the behalf of the owners, as well as maintain the apartment and enforce the by-laws.

Read also: Bylaws: The constitution of your Apartment Association  and download a sample byelaws template that you can customize for your needs

 This article aims at collating and providing information on forming an association for benefit of ApnaComplex customers and readers. While ApnaComplex has taken every care to ensure the information is accurate, we suggest to please use it only as a guidance for further discussion and action with help of relevant professionals. If you need professional advise on this topic and any other property related matters, please send your request through our contact us form. You may post your questions/inputs in the Comments section below and we will try and get them answered through relevant subject matter experts.
  1. P.S.R.SWAMI

    Noramlly the builder is not interested in forming and registering the association and there is no law compelling the registration. If the Municipality gives an identification number at the time of approval of site plan which can be used as registration number of the association of the flat owners. Or there should not insistence on number of persons to register the association. Or if no registered association is there Municipality should levy penalty on the flat complex. Once registration is there, any complaint about mis-use of flats’ common areas, non-provision of parking, construction of areas in violation of the approved building permit can be obtained and penal action initiated.

  2. Ramakrishna

    Good job..nice website,keep up the good work..would like to read more on your blog.

  3. vm.moorthy

    is it compulsary to coduct election to select the committee members as per appartment act 2001 and 1987

  4. can i get general rules and regulations as our appartment is not registered and it is an small appartment of 12 flats so if u can forward the general rules so that we can maintain the appartment temp.

  5. The maintenance charged by the promoter ( Ruchi Realty at Active Acre, Kolkata) appointed agency is very high and the payment collection is in the name of active acre welfare association, which is unregistered, Is there any way flat owner can check the expenses and income.

  6. I have owned a flat of 2581 sq. Feet at Ruchi realty project – Active Acre in kolkata the maintenance cost is Rs.2.55 per sq.feet + service tax which is very high, being taken by theren own formed association (which is not registered) and appointed agency. Is there any way flat owner can form it’s own association or take control of the present association, to check the expenses icurred are actualy true. Secondly since its a new project it seems lot of initial expenses are being booked also in maintenance. How we as a owner of the flat can control.

  7. Anish

    I have purchase a flat in Secunderabad. Every flat has different area. Now people are proposing maintenance per sq ft which I feel does not make sense as there will be no maintenance inside the flat. In smaller flats there are more people staying which means lift and water usage will be more. Can I fight in court or is it a bad idea. I am suggesting either maintenance should be charged per flat or per person. We also have gym and swimming pool which again I feel has nothing to do with area of flat but it has to do with number of people using the same.

  8. shankar

    sir good afternoon we want to know can the associtation sell the new parking place ,our building is 12 years old

  9. naveen

    societies registration act objective is for promoting art, charity, culture etc. Then how can apartment association register under the societies registration act.

  10. ravindra

    who is the owner of club house , what is the club house rules&how to use the clubhouse

  11. prasunamba

    i have purchased an apartment at vijaywada. out of 25 23 members are ready for registration of flat owners association. I think it is mandatory all flat owners shall accept for registration of flat owners association .

  12. Vijay Reddy

    I have purchased an apartment in 2008 and first to occupy and in 2009 builder installed a cell tower with out our permission it took 6 years (2014) to fill all the flats and now we want to form an association. We have a doubt about the cell tower to whom it belong to association or to the builder. if it belongs to the builder we want it to be removed, if its for the association we want to keep it as it reduces the maintenance. can anyone suggest.

  13. kiran kumar

    The builder does not register the deed of declaration or bye laws because he has to pay for registration fees of clubhouse/parking, tot lot etc, though he has collected money from the flat owners. He will try to smoothly exit the project if you question him. Also, once he registers the plan, he cannot change or construct illegal structures. Owners must before buying insist that the approved plan along with common areas be registered as a deed of declaration. Simply, without any reason, after selling the flats, builder will continue to use club and parking as his private property and keep selling parking to others or sell for advertisement etc. All those all illegal and can be invalidated by filing a case in consumer court. If you have already bought, consider filing a case in consumer court, since builder has to register the owners association under apartment ownership act within 4 months of sale of flat and force him to register the plans/common areas/parking/terrace etc.

  14. T V RAAO

    The article should also cover the necessity of applying for PAN and the procedure for aplying for PAN as now a days PAN is compulsory for depositing money. The HSGs collect corpus funds and the interest on the deposits is taxable.

  15. Kodali Rama Mohana Rao

    Is it necessary to renew the registration aprtment owner’s associatin every year after a new executive committee is elected every year?