REGULATORY · COMPETITIVE · INDIA
Karnataka High Court backs KAOA owners’ associations
Change
The Karnataka High Court held RERA and KAOA are not repugnant and that KAOA owners’ associations, not cooperative societies, manage residential apartments.
Why it matters
Justice M.G. Uma allowed Sobha Limited’s petition involving the 395-unit Sobha HRC Pristine complex in Jakkur. The petition challenged a cooperative society registered in September 2023 as a parallel body to an owners’ association formed in June 2023. The owners’ association included most of the 323 owners who had received sale deeds. A group of 30–40 owners had registered the cooperative society under the Karnataka Cooperative Societies Act while asserting RERA required it and prevailed over KAOA. The court held there is no repugnancy between RERA and KAOA and identified the KAOA owners’ association as the proper management body.
Implications
- • Cooperative societies registered under the Karnataka Cooperative Societies Act do not displace a KAOA owners’ association as the apartment management body.
- • Arguments that RERA prevails over KAOA for forming the apartment management body were not accepted in this ruling.
- • Developers can challenge registration of a cooperative society as a parallel resident-management body where a KAOA owners’ association exists.
Who is affected
- • Apartment owners’ association office-bearers (KAOA)
- • Apartment owners registering cooperative societies
- • Real estate developers
- • Property management administrators
Source
Topics
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