Minutes of the Meeting (MOM) General Body Meeting of Purva Swanlake Apartment Owners Association (PSAOA)
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1 Minutes of the Meeting (MOM) General Body Meeting of Purva Swanlake Apartment Owners Association (PSAOA) Date & Time: 6 th November 2016, 10.30am to 12.00pm IST Venue: B-block Basement Car Parking, Purva Swanlake Attendance: 83 flat owners attended in person or proxy Meeting Chair: Mr.Arun Raj, President, PSAOA Category Welcome and Introduction Discussion / Decisions / Actions The President welcomed all to the General Body Meeting. The members of the Executive Committee were introduced to the General Body for the benefit of those who were meeting the group for the first time. A projector and screen was used to put up a presentation that the committee had prepared. Agenda Recap The Agenda of the Meeting was recapped: Association Finances Association Registration Facility Management - Issues and Solutions Any other relevant topics of common interest provided availability of time Resolutions Finances FY15-16 President explained that the FY financial statements have been received post audit by an independent auditor. The balance sheet was shown in the presentation and the physical copy of the audit report was shown for any member to check. There were no questions asked on the same. The audited report shall be filed with the sub-registrar s office and would be available at the association office. Finances FY President explained that FY needs to be seen in two parts. One for the period of 01-Apr-2016 to 30-June-2016 where the association only has the leftover amount from the previous association as finances where we were left with a balance of INR The account statement was presented separately for the same. The second period is from 01-July-2016 onwards when the association took
2 over the facility management and maintenance from Puravankara Projects Limited and collected maintenance charges from the owners accordingly. It was stated that for 729 apartments, the total collection of advance maintenance charges should have been INR 2,32,12, As on 4 th November 2016 INR 1,37,68, had been collected, which amounted to 59% of the total amount that had to be collected. Balance collection that remained pending amounted to INR 94,44, which is 41% of the overall amount to be collected. Out of the INR 94,44, balance amount to be collected, Puravankara Projects Limited (PPL) has to pay INR 70,85, (which is about 75% of the total pending amount), and the other individual owners put together have to pay INR 23,58, (which amount to about 25% of the total pending amount). In terms of number of flats against the payments status. Out of a total of 729 flats, the association has received full amount from 385 flats, partial amounts have been paid by 19 flats, no amount has been received against 57 flats, and for 268 flats PPL has paid only the July payments. After adjusting for all payments made and all invoices where payments are to be paid for the period starting from 01-July-2016 onwards, the association is currently left with an effective balance of INR 46,56, Maintenance charges trend was shown to audience with the below graph: On actuals, the maintenance charges per month per square feet had come to INR 2.57 for July, INR 2.04 for August and INR 1.73 for September. Page 2 of 7
3 Association Registration President explained that the association registration had raised a few questions and the committee wished to clarify the same. Instead of going for a new registration of the association, the committee had decided to continue to go with the older association with a change of name. Hence, the old association s name was changed from Purva Swanlake Owners Welfare Association (PSOWA) to Purva Swanlake Apartment Owners Association (PSAOA). The rationale to go for this is as follows: 1. The sub-registrar s office denied registering two associations with similar names, intents, office-bearers and list of members. 2. Closing the previous association and forming a new association would have taken 3 to 6 months as stated by the sub-registrar. 3. The change of name was recommended by the sub-registrar herself as both the associations were for the same intent. 4. The context of this decision is also from the fact that in July 2016, the builder had stopped providing back-up electricity and was resorting to armtwisting tactics because some owners had not paid them. 5. For every month that the facility was under the management of the builder, the builder was charging a 15% service charge over and above the actual maintenance charge. 6. We had to take over from the builder and for managing the finances we needed to have a bank account which would further need a registration document stating that we are a legal entity. This led to the executive committee taking a decision on this matter and not waiting for another month to call for a GBM. This decision eventually needs a ratification of the General Body and hence was presented and further put up as a resolution for the General Body to pass through formal voting. Legal Matters President stated that there are a few legal matters pertaining to the association that must be told to the General Body and an update was given on the same. 1. Legal Suit There is a legal suit against some of the current and previous office-bearers of the association. The suit is by Puravankara Projects Ltd. (PPL). It is an injunction against the individuals to not to protest with banners and sloganeering around Purva Swanlake. The suit is in trial stage. 2. Legal Notice 1 There is a legal notice served to the association by an owner against the bylaw preventing the flats to be let out to students. The notice contains some statements and no response is sought. The association has not responded to the same. 3. Legal Notice 2 There is a legal notice served to some office-bearers of the association by Page 3 of 7
4 Mr.Gaurav Eary (owner of B-901) and some others. Mr.R.K.Venkataraman (owner of B-402) and Mr.Srinivasan Venkataraman (owner of A-1001) were part of group on behalf of whom the notice was served, but they have now withdrawn from the legal proceedings. The notice touches upon multiple issues. An interim response has been given. An owner member asked at the GBM if the association has a lawyer on rolls. It was conveyed that the association does not have a lawyer on rolls, but we are in consultation with some lawyers on a case to case basis. While it was approved in the last GBM that a lawyer could be hired, we have not been able to find one. The association office requested the owner members to suggest or refer a lawyer who can help us manage the legal matters. Open Issues with Puravankara PPL has paid maintenance amount to the association for the month of July 2016 only. The subsequent payments are on hold as they want to recover the payments from defaulting owners. The association has clarified that we do not carry any liability towards defaulting payments by individual owners for the period ending June Handover meetings have been delayed and we are working at completing the handover by end of this year. Current Status: 194 owners have not paid PPL, amounting to about INR 31 Lacs. Unknown number of owners have a positive balance of about INR 16 Lacs. PPL is not released the Corpus Fund of about INR 1 Crore. PPL is not releasing the maintenance due to the association for the months of Aug, Sep, Oct-16 which is about INR 42 Lacs. PPL is to pay the maintenance due to Nov & Dec-16 which would be about INR 28 Lacs. Change of Facility Management President explained on why did we went for a change in the vendor for Facility Management? Pending payment disputes between AFM and PPL impacting service delivery at Purva Swanlake site. Unacceptable attitude exhibited by the AFM staff towards working on service calls raised by the residents due to salary non-payment. Thefts were reported at multiple instances and were reported to police. We have significant circumstantial evidence that AFM and Security were involved. Major issues were reported like intercom cables were cut, DG generators (high CapEx equipment), swimming pool were not maintained properly, etc. STP AMC vendor under agreement with PPL did not maintain the STP machinery properly, this continued even though AFM agreed to operate and maintain the same. Technical supervisor and clubhouse executive were unavailable for more than 2 weeks without any prior notice to PSAOA causing service deficiency. Vestian proposed an integrated solution which other vendors could not offer with the right blend of cost and quality. Page 4 of 7
5 Cost Comparison The cost comparison of Facility Management services providers were shown to the audience. This is the same comparison sheet which was posted on Apartment Adda a few weeks back. Resolutions The following resolutions were proposed in the GBM Page 5 of 7
6 Resolution Discussion Resolution #1 Points were raised questioning the procedural finesse of changing the name. The same was accepted, but the context of the decision being made was clarified. Resolution #2 It was discussed and agreed that the association should not take a stance on this matter and should demand for a release of corpus fund, at least of those owners who have not paid their maintenance due in total. This resolution was removed from the voting sheets thereafter. Resolution #3 It was explained that our current account with SBI was a current account and that HDFC was willing to offer savings account which would accrue interest. Resolution #4 It was informed to the General Body that about 42 apartments had student tenants who were sent notices to take necessary action based on the by-law adoption. About 9-10 flats remain with students with much nuisance caused to the neighborhood. In that context, the committee sought agreement from the General Body to take action Resolution Adoption The voting sheets were provided to those who had registered at the beginning of the meeting, including both members and proxies. The committee opened it for any member to oversee the voting process and be part of the counting process. Mr.Saad Towheed, Owners N-502, volunteered for the process. Page 6 of 7
7 Resolution #1 was adopted with 51 votes counted in favor and 11 votes counted against. Others abstained from voting on this resolution. Resolution #3 was adopted with 58 votes counted in favor and 7 votes counted against. Others abstained from voting on this resolution. Resolution #4 was adopted with 53 votes counted in favor and 12 votes counted against. Others abstained from voting on this resolution. Other Discussions One of the owners brought up the discussion on allowing personal maintenance works (carpentry, interiors, maintenance, etc.) on holidays. With a show of hands, it was accepted by the General Body that works can be allowed on all days, but not after 6pm. On holidays, while the works are allowed, it must not disturb the neighbors. Works like hammering and drilling to be avoided. Vote of Thanks The President announced the results of the voting and closed the proceeding with the delivery of Vote of Thanks! Page 7 of 7
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