House property tax related

Dear Client,
Section 3 of the Maharashtra Ownership of Flats (Regulation of the Promotion of Construction Sale Management and Transfer Act 1963 outlines the general liabilities of the Promoters. The said Act was amended in 1986 and a sub-section (a) to the Section 3 was inserted. According to Section 3(a)(j) of the Act, a promoter, who constructs or intends to construct such block or building of flats, shall make a full and true disclosure of all outgoings (including ground rent, if any, municipal or other local taxes, taxes on income, water charges and electricity charges, revenue assessment, interest on any mortgage or other encumbrances, if any). Further, as per Section 6 of the said Act, a promoter shall, while he is in possession and where he collects from persons who have taken over flats or are to take over flats sums for the payment of outgoings ever thereafter, pay all outgoings (including ground rent, municipal or other local taxes, taxes on income, water charges, electricity charges, revenue assessment, interest on any mortgage or other encumbrances, if any), until he transfers the property to the persons taking over the flats, or to the organisation of any such persons. Thus, the Aact clearly states that a promoter (builder) must make payments for property tax, municipal taxes, ground rent, water charges, and other outgoings until the full transfer of the property to the flat purchasers or the housing society/association is is formed and registered under the Act and that responsibility of promoter continues until the title to the land and building is officially conveyed to the housing society/association. The builder is also obligated to form the housing society within a specified period after most flats have been sold and possession is given to the purchasers. A builder's failure to meet these obligations can result in liability, and the society/association can pursue legal recourse for such failures against the promoter/builder.