RWAs - Do They Require Re-registration?

           

By G. Jagadeswara Rao, 

B.Com., FCA.,DISA (ICAI), Tarnaka, Hyderabad


I have explained the necessity and benefits of registration of a Resident Welfare Association (RWA) in Tarnaka Times in the month of June 2019, wherein I have written that Resident Welfare Association can still be registered under Andhra Pradesh Societies Registration Act, 2001 as Telangana State Real Estate (Development and Regulation) Rules 2017 permit it, and in the same article I have also explained the reasons why it is better to register the RWA as a  Mutually Aided Co-operative Society. Also, in my article in July 2019 of  this Journal, I have explained the procedure to register a RWA under Telangana Apartments (Promotion of Construction and Ownership) Rules, 1987 and the authority to register RWA is vested with the Commissioner for Co-operation and Registrar of Co-operative Societies, Hyderabad or any person authorized by him is empowered to register the flat or apartment owners association under the Andhra Pradesh Apartments (Promotion of Construction and Ownership) Act, 1987. In the same Article I have stated that Society registered under Telangana Apartment (Promotion of Construction and Ownership) Rules, 1987, is not an artificial judicial personality and hence it cannot hold any property in its own name and neither it can sue nor can be sued on its own name, but in the name of the President.


NOW, A Circular memo dated 28/01/2019, issued by the Commissioner and Inspector General, Registration and Stamps, Telangana, Hyderabad has been brought to my notice. This circular while referring to the High Court judgment in the case of Belvedere Residents Welfare Association, has directed the District Registrars as under:


“……and the DRs shall take necessary action accordingly in respect of previously registered societies wherein the activities are confined to apartment maintenance and upkeep. The DRs whenever the Society files AGM or any other paper, the same shall not be taken on to record but inform the society that it is not possible to act in respect of the society keeping in view the Honorable High Court order and also the spirit of the law and return the same with an advice to get the society registered under the provisions of cooperative act if the members so desire.”


As per this circular, Apartment Associations registered under Societies Registration Act can no longer update their status, file any documents with either Inspector General of Stamps and Registration, who is administering  A.P. / Telangana Societies Registration Act, 2001 or the District Registrars, who are administering the said Acts under delegated authority. Under these circumstances it is imperative to get the Apartment RWAs to re-register themselves either under the Mutually Aided Co-operative Societies Act, or Apartments (Promotion of Construction and Ownership) Act, 1987. However, it is always advisable to register the RWAs under Mutually Aided Co-operative Societies Act. 1995 for the simple reason that it is an artificial judicial personality and detailed guidelines are available for the effective management of the Society.


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