RESIDENT SPEAK: Rent for shops in housing societies also belongs to RWA

By Col P Chandra
Posted: Oct 13, 2018

A large number of high-rise group housing (GH) societies have come up in Noida and Greater Noida.  Many of these have commercial shops on the premises built by the promoters.

In most cases, the promoter pays off the full amount of lease rent for 11 years for the land. But this lease rent amount is taken from the flat owners. So the flat owners have, in a sense, paid for the land on which commercial shops are built.

Many promoters have built commercial units in front part of GH societies. These commercial units have been given out on rent for commercial activities. The promoter may have given these commercial units out on rent or might have sold them. But the moot point is that the promoter cannot build shops or commercial units on GH society land for his benefit. If such shops have been built by the promoter, then AOA should have claim over such shops on behalf of all the sub-lessees, or flat owners.

According to Noida Building Regulations (Clause 24.2.4), shops are also a common facility. Promoters cannot be allowed to operate or sell these convenience shops.

Commercial facilities on plots which have been leased out by Noida Authority for construction of a group housing society cannot operate to fill up the coffers of the promoter. The promoter cannot be allowed to rent out these shops and pocket the rent amount as profit.

The rent amount rightfully belongs to the AOA of the GH society. The AOA will also not operate, but lease out these shops on rent to build reserve funds to maintain the society. That is the actual purpose of shops under UP Apartment Act 2010.

Therefore, AOA of GH societies should be given right to lease out these shops on rent and use the rent for welfare and maintenance of the society.

TAGS: Noida / Greater Noida / Group housing societies / commercial units / builder