Residential Welfare Association and Ad-hoc Committee

RWA AND AD-HOC COMMITTEE FOR THE SMOOTH FUNCTIONING OF YOUR SOCIETY:

By Sandigdha Mishra, Advocate

advocate.sandigdhamishra@gmail.com

advsandigdha@paydirtprofessionals.com

A resident welfare association (abbreviated as RWA) is a Non-governmental organization that represents the interests of the residents of a specific urban or suburban locality. RWAs are typically registered under Haryana Registration and Regulation of Societies Act, 2012 for the societies in Haryana, which require groups to have a minimum of ten members and the activities of such RWA are governed by The Haryana Apartment Ownership Act, 1983. These acts also set the rules for the establishment of RWA bye-laws, which include such things as membership criteria, voting rights, and the conditions under which RWA can initiate legal proceeding on behalf of the registered society through its governing body.

Societies registered under the Haryana Societies Registration Act holds the status of a legal entity. The Department of Industries and Commerce, is responsible for registering Societies under the Haryana Government.

IF an Association or Society is not registered by following due procedure of law, then any committee or ad-hoc committee is unauthorized and illegal. An ad-hoc committee can be constituted only in a duly called General Body meeting. If the ad-hoc committee formed was not endorsed by all the members or it has no support of all the members i.e., at least 2/3rd members support, then  their authority can be questioned as per appropriate legal provisions. The function of ad-hoc committees is to accomplish specific tasks, often on a short-term basis not easily provided for elsewhere in the committee system. Each ad hoc committee has a particular goal to achieve or product to provide to its initiating body. However from the case of Little Gibbs Co-Op, Housing, AIR 1972 it is clear that for the any function of the ad-hoc committee Co-operative spirit is the core factor.

 

once the construction of a residential project is complete and a reasonable number of owners occupy their apartment, the next step is to hand over project maintenance to residents by initiating the formation of an RWA. This is an association of house owners in a particular society. Its responsibilities include day-to-day maintenance of the complex, including services like security, housekeeping, upkeep of amenities, collecting maintenance charges and other things within the society complex. If the developer does not initiate the formation of RWA, residents can do so on their own.

Often, developers do not allow RWAs to be formed to be able to retain control over maintenance and other charges.

Ideally, formation of RWA should be initiated by the developer. “Builders have to hand over the building to residents within a few months of receipt of occupation certificate, If that doesn’t happen, or if apartment owners are not satisfied with the maintenance services provided, they can take over the management. If their reply is not satisfactory, you may either approach the registrar of cooperative societies or cooperative court for relief with an order of stay for the functioning of the ad hoc committee. After that you can decide about a regular committee either by election or any other mode as per prevailing circumstances. However The Real Estate (Regulation and Development) Act, 2016 (RERA), states that as soon as a majority of home buyers have booked their flats i.e.50% of flats are handed over by developer, an RWA should be formed within three months. Associations are not mandatory but if these are formed, it should be registered. If the developer does not take the initiative, the residents can form an association body on their own, as well. Or the developer and the Resident can mutually form the association. “Usually, as per current industry practice after an ad hoc one-year’s maintenance by the developer, the residents can come together and form an RWA.

For Society registration, the establishing members must agree with the name of society first and then prepare for the Memorandum, followed by Rules & Regulations of the society.

Selection of a Name

When selecting a name for society registration, it is vital to understand that according to Society Act, 1860, an identical or similar name of a currently registered society will not be allowed. Moreover, the proposed name shall not suggest for any patronage of state government or government of India or fascinate the provisions of Emblem & Names Act, 1950.

Memorandum of Association

The Memorandum of Association of the society along with Rules & Regulations of society must be signed by every establishing member, witness by Gazetted Officer, Notary Public, Chartered Accountant, Oath Commissioner, Advocate, Magistrate first class or Chartered Accountant with their official stamping and complete address. The memorandum must contain the name of the society, the object of the society. Also it consists details of members of the society registration along with their names, addresses, designations, and occupations. 

The following document has to be prepared, submitted and signed for the sake of registration:

i. Requesting society registration by providing covering letter, signed by all establishing members

ii. Duplicate copy of Memorandum of Association of society along with certified copy

iii. Duplicate copy of Rules & Regulations of society along with duplicate copy duly signed by all establishing members

iv. Address proof of registered office of society as well as no-objection certificate (NOC) issued by landlord

v. Affidavit avowed by secretary or president of society declaring relationship among subscribers

vi. Few minutes of meeting regarding the society registration along with providing some essential documents.

Documents required to register a society

Following are the documents required for the Society Registration in India:

1. PAN Card of all the members of the proposed society has to be submitted along with the application.

2. The Residence Proof of all the members of the society also has to be submitted. The following can be used as a valid residence proof:

Bank Statement

Aadhaar Card

Utility Bill

Driving License

Passport

3.Memorandum of Association has to be prepared which will contain the following clauses and information:

i. The work and the objectives of the society for which it is being established

ii. The details of the members forming the society

iii. It will contain the address of the registered office of the society

4. Rules & Regulations of the Society also have to be prepared which will contain the following information:

i. Rules and regulations by which the working of the society will be governed and the maintenance of day to day activities

ii. It will contain the rules for taking the membership of the society

iii. The details about the meetings of the society and the frequency with which they are going to be held is to be mentioned

iv. Information about the Auditors

v. Forms of Arbitration in case of any dispute between the members of the society

vi. Ways for the dissolution of the society will also be mentioned

Once the rules have been formed, they can be changed but the new set of rules will be signed by the President, Chairman, Vice President and the Secretary of the Society.

5. A covering letter mentioning the objective or the purpose for which the society is being formed will be annexed to the beginning of the application. It will be signed by all the founding members of the society.

6. A copy of the proof of address where the registered office of the society will be located along with a NOC from the landlord if any has to be attached.

7. A list of all the members of the governing body has to be given along with their signatures.

8. A declaration has to be given by the president of the proposed society that he is willing and competent to hold the said post.

All the above documents have to be submitted to the Registrar of Societies along with the requisite fees in 2 copies. On receiving the application, the registrar will sign the first copy as acknowledgment and return it while keeping the second copy for approval. On proper vetting of the documents, the registrar will issue an Incorporation Certificate by allotting a registration number to it.  

The signed Rules & Regulations, as well as Memorandum, has to be filed with concerned society or registrar of state with a mentioned fee. If the registrar is fulfilled with society registration application, then they will certify that the society is registered. 

Governing Body –  Resident Welfare Association should have a governing body of the society to look after and to manage the day to day affairs of the society.

i. It should consist of the ten members as per Haryana Society Registration Act.

ii. The meetings of the governing body are to be conducted within a period of time which the society thinks fit and the quorum of the meeting should be 2/3rd.

iii. The accounts of the society will be audited by the qualified auditor every year to be appointed by the governing body.

iv. The governing body of the society will be elected for a fixed term decided by every RWA individually.

v. The raising hands will be the mode of election. 

The newly elected governing body’s list should be attested by the three out going office bearers and it will be filed with the registrar of the societies, Haryana.

The following should be the present structure/strength of the governing body –

a. President: One

b. Vice-President: One

c. General Secretary: One

d. Secretary: One

e. Treasurer: One

f. Finance Advisor: One

g. Executive Members

Power and Duties of Office Bearers

President – He/She is to preside in all the meetings of the general body and the governing body. In the case of equality of votes in any meetings, he/she is to vote on a draw. He/She supervises the work of other office bearers from time to time.

Vice-president – In the absence of the President, the Vice-President enjoys all powers and duties which are entrusted to the President. He/She will also assist the President in his/her duties from time to time.

General Secretary – He/She will represent the society in public and private offices. He/She is entitled to keep all types of records of the society including the registration of members containing their names, addresses and other brief particulars.

Secretary –  In the absence of the General Secretary, the Secretary enjoys all powers and duties which are entrusted to the General Secretary. He/She will also assist the General Secretary in his/her duties from time to time.

Treasurer – He/She collects subscription, gifts, grants-in-aid and donations from the members and the general public and is to be made responsible for keeping and maintaining the true and correct accounts of the society’s fund.

The financial year of every RWA begins from 1st April and extends up to 31st March every year. The funds of the Society is to be kept in a scheduled bank. The bank account of the society will be operated by the Treasurer or/and by any one of the President or General Secretary.

Executive Members – They will assist in the day to day work of the society as directed by the President and General Secretary.

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