BENGALURU: In a significant move, that may serve as a wake-up call to many associations in the city, the Registrar of Societies recently froze the accounts of a residential welfare association due to failure to register with a bank under the Right Act. The action was taken by ordering freezing. His involvement in financial irregularities. This is the first example of a residential welfare association facing a freeze on its finances.
The order, dated October 6, was directed at Whistling Woods Welfare Association, which was responsible for the management of the 76-unit Whistling Woods apartment complex located at Naganahalli (off Doddaballapur Road) in north Bengaluru. However, the association managed to lift the freeze on its HDFC Bank account at the Rajankunte branch after a week.
The inspiration for the order came from a dedicated resident, 73-year-old RR Hegde, who made 14 visits to the sub-registrar’s office to ensure that the order was issued. Expressing his concern, he said, “The builder has not yet completed the work totaling Rs 2.42 crore, with provisions for drinking water supply and solar system incomplete. They still managed to get the occupancy certificate from the BBMP.”
Hegde further highlighted a common issue among associations in the city, where many have registered under the wrong governing body and continue to collect maintenance fees, which is considered illegal. “he has misused Rs 26 lakh of the corpus fund Out of Rs 44 lakh,” he alleged.
Karnataka Homebuyers Forum general secretary Dhananjay Padmanabhachar recalled the High Court’s response to a writ petition dated November 6, 2019, directing all apartment associations not to register themselves under the Karnataka State Registration Act. Following this direction of the court, the Cooperative Societies Department was directed to register the apartments under its jurisdiction.
In response to the action taken, members of the Whistling Woods Association met the Registrar and pledged to register themselves as a cooperative society. He also requested for the stay to be lifted, citing the need to pay his staff responsible for security and housekeeping duties, which was later granted.