Telangana HC stays memo impacting flat owners

HYDERABAD: Justice Chillakur Sumalatha of the Telangana High Court on Wednesday granted an interim stay on a memorandum by the principal secretary, the Revenue department, granting permission to apartment and flat owners’ associations in the State to opt for registration under the Telangana Societies Act, circumventing the need to register under the Cooperative Societies Act.

The court was hearing a petition filed by Madamanchi Ramesh Babu of Emerald Rainbow Vistas in Moosapet, Hyderabad. Sripada Prabhakar, senior counsel representing the petitioner, argued that the memorandum, dated August 21, 2023, was violative of the Apartments Act. He pointed out that an executive memorandum issued by a government official cannot supersede the established laws of the land.

Prabhakar also alleged that the memorandum was issued under the influence of real estate developers.
Senior counsel said that the memorandum deprives flat owners of their ability to file complaints with the cooperative department to address issues related to the executive committees of Apartment Owners Welfare Associations.

Even in cases of alleged misuse of association funds or neglect of residents’ welfare, the residents would be left without recourse, as the Telangana Societies Act does not confer authorities the power to take action in such instances. In contrast, the Cooperative Act empowers authorities to intervene in such matters.

After hearing the arguments, the judge found merit in the case and granted an interim stay on the memorandum. The judge has sought responses from the State government and the CREDA.

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