I have booked flat in Sollanna, Thergaon last year, I'll get the possession in next week. It is a 500 flat project so it will take another couple of years to complete the complete scheme. The builder has not register the society yet, he will do that after completing the whole scheme. But he is demanding 20k as a deposit for society. what he is saying is he will put the money (20K * 500 = 1Cr) in society deposit and the interest will be used for maintenance, but as the society is not formed yet he is demanding the cheque without name on it.

Adding to that I have to pay 1Rs/sqft maintenance charge for first 2 years.

What should I do, I am confused?
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  • Don't give that cheque unless he has a name for the society. He can put the cheque in some other account and claim that you never paid. Is he ready to give a receipt for that amount ?
    Normally builders have some escrow account in whose name you have to give the cheque.

    If you have a mailing list/newgroup of your complex/flat owners, then try to discuss this and have more folks to support you and demand the builder to register a society first.

    I thought, the builder has to form a society (eg: XY Cooperative Housing Society) to get permission to build such a large complex. Without this, how did he get permission ?
  • It all starts here. Thats why in a RE transaction 90% of the times its only Builders that make money and the buyers loose money.

    If you have even half of your brain with you, don't indulge in these things.
  • shoot him

    Take a gun and shoot him man.