BENGALURU: In a move that could serve as a warning to countless associations in the city, the Registrar of Societies recently issued orders to a bank to freeze the accounts of an association of a four-storeyed residential apartment complex, for not registering under the correct Act and for indulging in financial irregularities. This is the first time there was a move to stop the money flow of a residential welfare association.
The order, dated October 6, was issued by the Registrar for the Whistling Woods Welfare Association, which manages the 76-unit Whistling Woods apartment at Naganahalli (off Doddaballapur Road) in North Bengaluru. The association managed to get the freeze imposed on its HDFC Bank account at Rajanakunte branch lifted a week later.
The order was passed thanks to a resident, 73-year-old RR Hegde, who visited the Deputy Registrar’s office 14 times to ensure the order came through. Hegde told TNIE, “The builder has not yet completed works totaling Rs 2.42 crore, with provision for drinking water supply and solar systems not done. They still managed to get the Occupancy Certificate from BBMP.”
Associations around the city have registered under the wrong body and keep collecting maintenance charges and that is illegal, he added. “Of the Rs 44 lakh corpus fund, they have misused Rs 26 lakh,” Hegde charged.
Dhananjaya Padamanabhachar, general secretary, Karnataka Homebuyers’ Forum, recalled a high court response to a writ petition (November 6, 2019) directing all apartment associations not to register themselves under the Karnataka State Registration Act. Following the court directive, the Department of Cooperative Societies asked apartments to register themselves under it.
“The association members of Whistling Woods met the Registrar on Friday and promised to register themselves as a cooperative society. They also requested for the freeze to be lifted as they need to pay many staffers carrying out security and housekeeping duties, and it was done,” he added.