Most of the Buyers here are first timers and probably will be end users themselves.

Pick up each and every brochure of any builder and you will see facilities like Swimming pool, gym, club, shopping, etc in each and every project.

So what seperates them when they are ready for possession...

Answer: Management and Maintenance.

Even Taj Mahal if not well managed and maintained can look atrocious in a year

So facilties needs to be managed and maintained. BUT

The first 2 years Builders take full control over this issue and have thier own sister concern as a maintenance agency.
And if the project is not fully complete..meaning...tower still coming up, etc etc....their control will be for a longer time.

Most of you have no clue that RWA cannot be just formed by sipping coffee in someones drawing room...and its an official matter under the jurisdiction of Noida. There are By laws and rules laid by the govt. to create an authorised RWA.

This ignorance is used by builders to create rifts amongsts residents so no RWA can take over maintenance and they continue as long as possible.

But why a builder will be interested in a project which he has already sold out?????
Answer....Lots and Lots of Money,
Here is how;

1. Security agencies....go to any secuirty firm and compare the rates of guards...the best ones can go upto 10k and the useless ones around any maintenance agnecy who has the deciding power can take good commission from these secuirty companies and hire cheap guards but sign on higher rates. More number of guards are emplyed on paper...while many are missing in action.....This itself runs in Lakhs per month

2. Diesel....Hmmmm....With power cuts..u need to run DGs..which run on Diesel.....the qty of diesel is easily played around...and the bigger the society...bigger the margins....not to forget commission from Diesel suppliers...who even give adultrated diesel which eventually screwa up DGs after 4-5 years...all this again this runs in lakhs per month

3. Commissions from Horticulture agencies...though not much...but still adds to their monthly profits

4. Commission from Shops to start their shops in premises

5. Commision from cable operators, wifi operators, etc etc

6. 12% service charge...which is utter in office you will have hardly 5-6 employees and taking 12% service charge from nearly 2000+ flats

7. ofcourse the profits from high maintenance rates

The idea is simple...make maximum and compromise on quality.

Now to prevent residents from taking have often resorted to divide and rule policies......even giving monetary gains to individuals to keep this matter away. Its very easy to find such individuals...
What if a builder XYZ ells me to take their side....and in return...i get a preferred top location in their upcoming project and an additional discount????...hmmm...can be nice...isnt it.....such means have always been adopted by builders in the past

Most of u guys on this forum will be busy in ur 9-5 jobs and wont take the headache of being involved in all this RWA business as its no joke.....peole will corner u all the time...its like a full time usually the retired senior citizens or people who are aelf employed make a part of this.

Builders are aware of all this..and so plan their strategies accordingly.

If ANYONE of you are at all interested in making an RWA of your society then follow these steps:

1. Form an online group of End users....Immediately Discard all Investors
Investors are the biggest issues in maintenance of society,,,,they dont live there....give flats on rent to any tom dick and harry....and worst....being owners can always have a say in RWA and creating issues....such people are easily identified by builders and used as i mentioned above.
This Group can usually be created when people start living, or during possession.

2. Get a hold of Bylaws of RWA and follow them.....Its this lack of knowledge by many owners that they are unable to do anything.

3. Donot be a leader or try to show that u call the shots.....just form a group..thats all....and folllow step by step to form a Registered RWA

4. Hold elections and designate people

5. once u have done things in a well planned manner....u can sit on top of mainetance agnecy and scrutinise them....for all their actions... effectively maintain and manage the society you have 2 options:

- either u take over (which is not easy)
- You form a residents group and sit on top of the builders agency and MAKE them work (not that difficult)

All the best
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  • Good information Zohaib. I have few questions.

    1. RWA must be having a bank account, isn't it? Who remains the authorized signatory of this account or this account as 4-5 people authorized signatories?

    2. Does forming an RWA needs builder's consensus?

    3. A website of society should be formed. Society people should have account on it (a mailbox). Quotations from various vendors along with their merits/demerits should be displayed on the website. People should be given opportunity to vote for the particular vendor with any comments. Few representatives of society in RWA should not consider it as business & should have 100% transparency. All vendors should be called together & given an opportunity to tell how their services are better than rest.

    Website should also display the monthly expenses, funds available, also the name of the people who have not paid the maintenance charges.
    Monthly maintenance charges should be payable online.
  • Rwa doesnt need any builders consent

    There are bylaws for rwa...u can visit any running rwa and get info from them...

    There are numrous ways to run an rwa...the issue is who will give time to it????

    Its not an easy task at all....senior citizens are not very computer savvy and most of them can be quite rigid (like normal old people)

    Nobody will like if anyone comes once or twice a week and tells whats not right and what should be fundas to everyday memeber who are spending a lot of time in this

    The idea is to start from very begining....and be united

    Tenants will be the biggest they are the ones who have no attachment to a society and hence break all the rules possible

    Investors too are biggest nuisance as they delay and hold maintenance most of the for them its a waste of their money

    What needs to be done or not done is not an easy task.....specially in a country like India where people are very indisciplined and now with new found money think they can do anything....

    You will be surpriced many socities in gurgaon with people from good jobs, etc are being a nuisance....with the 'jaanta nahin main kaun hoon' attitude

    Just for the record....approx 5% of socieities in Noida region are WELL all have succumed to 'chalta hai' attitude
  • we don't need rude senior citizens to run the needs energetic people. many senior citizens have no idea of current time & with their orthodox behavior, society can't be maintained properly, time toh main nikal loonga...if I am appointed as one of the members in RWA.

    I wish in this technology era, society should have its own website displaying the update information, tender notices, quotations received, maintenance charges, detailed expenditures, funds deposited, festivals celebrations.. alot can be done on website & in true realization...start might be difficult..but once the things come in will streamlined...

    Zohaib, please reply to my query.

    1. RWA must be having a bank account, isn't it? Who remains the authorized signatory of this account or this account as 4-5 people authorized signatories?
  • Its very good if u can find 5-6 young people ready to devote 1 day a week also after work

    Usually its best to hire people for clerk jobs and manage them

    Its not at all easy....with the politics involved....accusations fly all over, etc etc....but defintaley its possible

    Regd bank account, etc....its only posssible once you have taken OVER from builder....thats not easy at all...knowing the money involved.

    There will be a high percwntage of defaulters.....most of them investors....and till these accounts are cleared....meanung all dues of builder are cleared..thenRWA takes its very tricky business.

    In many cases Builders will levy heavy penalties on these they remain as a defaulter.....and handover is further delayed.

    Anyhow...regd bank account...usually 2 people are signatory authorities for a certain amount as decided by RWA

    For large amounts...meeting done and the funds are approved...only after that cheque can be signed.

    RWA is a very flexible organisation and varies from each other.

    It just has to follow the bylaws of state govt. Regd audit, elections, etc etc etc

    It doesnt tell u how to operate one...but tell u how to elect one legally.

    managing a bigger society spl with many investors, tenants can be very bad.

    If u r so keen in this issue...suggest you keep a plan ready before possession and manage things from start......
  • By the way EVERY owner of property in a society automatically becomes the MEMBER of Rwa....

    like any society.....its bound to have 2-3 groups...some may be genuine...some have vested interests......

    the ones with vested interests are the one who have ALL the time in the world for Rwa....

    When time will come...u will see urself....all the best