Can a housing society committee delay flat handover and refuse membership to new owners?

Your Situation, in Brief

OC received ✅ | Builder ready to hand over ✅ | Old committee blocking ✅ | New flat owners not admitted as members ✅ | Ad-hoc funds being collected without transparency ✅

This is a textbook handover-deadlock in a redevelopment project. Each of your questions has a legal answer.

1. Who should move first — handover or membership?

Your instinct is correct. The law does not make membership a precondition to handover. Under RERA, once OC is received, the builder's obligations kick in independently of what the society committee decides:

"The promoter shall execute a registered conveyance deed in favour of the allottee along with the undivided proportionate title in the common areas to the association of the allottees… and hand over the physical possession of the plot, apartment of building, as the case may be, to the allottees and the common areas to the association of the allottees or the competent authority, as the case may be, in a real estate project, and the other title documents pertaining thereto within specified period as per sanctioned plans as provided under the local laws"

[The Real Estate (Regulation and Development) Act, 2016 §17(1)]

"After obtaining the occupancy certificate and handing over physical possession to the allottees in terms of sub-section (1), it shall be the responsibility of the promoter to handover the necessary documents and plans, including common areas, to the association of allottees or the competent authority, as the case may be, within thirty days after obtaining the occupancy certificate."

[The Real Estate (Regulation and Development) Act, 2016 §17(2)]

The builder's duty runs from the OC date, not from whenever the committee decides it's ready. The old committee saying "first admit members, then handover" has no statutory basis — it is a stalling tactic to retain control.

2. Can the society legally refuse to admit you as members?

No. The MCS Act has a clear provision against this. Under §23(1) of the Maharashtra Co-operative Societies Act, 1960, no society shall, without sufficient cause, refuse admission to membership to any person duly qualified under the Act and its bye-laws.

And crucially, there is a deemed membership remedy built into the law:

"Where a society refuses to accept the application from an eligible person for admission as a member, or the payment made by him in respect of membership, such person may tender an application in such form as may be prescribed together with payment in respect of membership, if any, to the Registrar, who shall forward the application and the amount, if any so paid, to the society concerned within thirty days from the date of receipt of such application and the amount; and thereupon if the society fails to communicate any decision to the applicant within sixty days from the date of receipt of such application and the amount by the society, the applicant shall be deemed to have become a member of such society."

[Maharashtra Co-operative Societies Act, 1960 §23(1A) — source: indiankanoon.org/doc/90445342]

What this means for you: Submit a formal written membership application (with your registered sale agreement copy, share money, and entrance fee) to the society. If they reject it or ignore it for 60 days, send it to the Deputy Registrar of Co-operative Societies (DRCS) for your ward. After 60 days of the Registrar forwarding it, you are deemed a member by law — regardless of what the committee says.

Asking for a copy of your registered agreement is fine as a document — but it cannot be a precondition to considering your application.

3. Can they collect maintenance/ad-hoc funds from non-members?

This is legally murky — and practically exploitative. The builder's obligation under RERA is relevant here:

"be responsible for providing and maintaining the essential services, on reasonable charges, till the taking over of the maintenance of the project by the association of the allottees"

[The Real Estate (Regulation and Development) Act, 2016 §11(4)(d)]

Until formal handover happens and the association takes over maintenance, the builder is technically responsible for essential services. The old committee has no legal basis to levy ad-hoc charges on flat owners who haven't been admitted as members — they are not parties to any resolution passed by a society they haven't joined. Paying under protest is advisable (keeps the paper trail), but demand itemised receipts every single time and send a written letter querying the legal basis of each levy.

4. Structural defect liability — is the clock already ticking?

Yes — and this is urgent. Your defect liability window runs from the date of possession, not from the date the society formalises handover:

"In case any structural defect or any other defect in workmanship, quality or provision of services or any other obligations of the promoter as per the agreement for sale relating to such development is brought to the notice of the promoter within a period of five years by the allottee from the date of handing over possession, it shall be the duty of the promoter to rectify such defects without further charge, within thirty days, and in the event of promoter's failure to rectify such defects within such time, the aggrieved allottees shall be entitled to receive appropriate compensation in the manner as provided under this Act."

[The Real Estate (Regulation and Development) Act, 2016 §14(3)]

This clock is entirely separate from the society mess. If you have received possession of your individual flat (keys handed over, possession letter signed), the 5-year window has already started for you. Do not wait for the society handover drama to be resolved before reporting defects (cracks, seepage, etc.) to the builder in writing. Send a written complaint with photographs to the builder now. Keep acknowledgment. This protects your §14(3) rights independently.

5. Best forums to escalate — and how

You have two parallel tracks. Use both.

Track A — MahaRERA (for builder obligations + handover)

The builder's failure to complete conveyance/handover within 3 months of OC under §17 is a RERA violation. Additionally, any defect in amenities the builder promised (and the old committee is citing) is a §14 issue.

"Any aggrieved person may file a complaint with the Authority or the adjudicating officer, as the case may be, for any violation or contravention of the provisions of this Act or the rules and regulations made thereunder against any promoter, allottee or real estate agent, as the case may be."

[The Real Estate (Regulation and Development) Act, 2016 §31(1)]

File at: maharera.mahaonline.gov.in

• Check if your project is RERA-registered (search by project name/number on the portal).
• File as individual allottees OR as a group — §31 explicitly covers the "association of allottees" as a complainant.
• No lawyer required; filing fee is nominal.

Track B — Deputy Registrar of Co-operative Societies (DRCS) (for the society's conduct)

This is your forum for:

• Forcing membership admission (§23 application route above)
• Demanding inspection of society records and accounts (MCS Act §32 — members/aggrieved parties can seek audit/inspection)
• Compelling the committee to hold a general body meeting and take handover

File at: Office of the DRCS for your ward/district in Mumbai. Find your ward here: sahakarayukta.maharashtra.gov.in

Write a formal complaint letter to the DRCS covering:

1. Refusal to admit members without lawful cause
2. Collection of ad-hoc funds with zero accountability
3. Failure to take handover from builder despite OC being received
4. Request for inspection/audit of society accounts

Track C — Builder's own RERA obligation (parallel push)

The builder has an independent obligation to enable formation of the association:

"enable the formation of an association or society or co-operative society, as the case may be, of the allottees, or a federation of the same, under the laws applicable"

[The Real Estate (Regulation and Development) Act, 2016 §11(4)(e)]

Push the builder in writing to either complete the handover or support a complaint against the uncooperative committee at MahaRERA. The builder has skin in this game too — they remain liable for outgoings and maintenance until handover is complete under §11(4)(g).

6. Getting fund statements out of a reluctant committee

Once you are admitted as members (or deemed members under §23(1A)), MCS Act §32 gives members the right to inspect records. Before that, write a formal letter to the committee demanding:

• Audited accounts for the period they have been collecting funds
• Resolutions passed authorising the ad-hoc levies
• Bank statement of the fund account

Copy the DRCS on this letter. A committee that ignores a written demand after the Registrar is in the loop tends to respond faster. If they still don't, the DRCS has powers to direct an audit.

What to Do This Week — Priority Order

1. Photograph and document all defects now — send written complaint to builder with date stamp. §14(3) clock is running.
2. Submit formal membership applications to the society (registered post + email) with sale agreement copy, entrance fee. Note the date. Set a 60-day calendar reminder for deemed membership.
3. Check MahaRERA registration of your project on the portal — if registered, file a group complaint about §17 handover delay and §14 defects.
4. Write to DRCS — formal complaint about membership refusal, ad-hoc fund collection, and handover blockade.
5. Write to the builder — remind them of §17(1) obligation (3 months from OC for conveyance) and §11(4)(e) duty to enable association formation.

Free Legal Aid

If you need help drafting complaints or navigating the Registrar's office:

• 📞 NALSA helpline: 15100 (free, multilingual)
• 🌐 mslsa.maharashtra.gov.in — Maharashtra State Legal Services Authority

You are eligible for free legal aid if you fall under any category in the Legal Services Authorities Act 1987 §12 (women, SC/ST, persons with disabilities, industrial workmen, or below the state income threshold). Even if you don't, DLSA can often guide on procedure at no cost.

JaanoHaq provides general legal information based on publicly available Indian statutes and government portals. It is not legal advice and does not create an advocate–client relationship. Free legal aid is available via your District Legal Services Authority — eligibility under the Legal Services Authorities Act 1987 §12 covers women, children, SC/ST, persons with disabilities, industrial workers, victims of trafficking, and persons below Maharashtra's notified income threshold.