Though the original Act was amended to pave the way for payment of compensation to flat owners in case of default by builders and realization of common usage charged by municipal bodies, the provision remained largely unutilized for want of awareness among the beneficiaries.

According to urban development minister, Prem Kumar, the flat owners are required to form a cooperative society in each of the apartment to claim the facilities as per the rules.

“It will also facilitate realization of usage charged from the owners, who refuse to share the load of municipal taxes on the apartment on one pretext or the other,” he was quoted in Hindustan Times.

The urban development department will soon issue a notification asking flat owners to form societies. As per the amended provisions of the Act all persons who buy flats should be treated as members of the cooperative society and tasked under a common management system.

The modalities for registration of flat owners under the Societies Act are being discussed and finalized in consultation with the registration department.

Officials of urban development department said the society of flat owners can file a petition before the authorize officer against any owner if he or she refuses or fail to deposit the arrears of shared taxes, such as common expenditure and service charge of the apartment for the last six months.

The minister said such arrears would be treated as property tax and collected by the concerned officers likewise. The society of flat owners is also deemed to play a pivotal role in realization of the compensation from the construction company and its promoter in case, they found the flat constructed in deviation from the promised map and facilities assured at the time of the deal.