The Karnataka High Court has held that to manage and maintain an apartment complex consisting of only residential flats, the association of owners has to be registered under the Karnataka Apartment Ownership Act, 1972, and not under the provision of Karnataka Co-operative Societies Act, 1959.

A single judge bench of Justice Anant Ramanath Hegde said “Admittedly, the project referred to above is a residential housing project. There is no commercial unit in the said project.

A writ petition filed by some residential owners in the DS Max Starnest residential complex. It directed the Registrar of Co-operative Societies not to register a co-operative society to manage the housing complex.

It also revoked the permission to raise share capital by members. The court directed builder DS Max to form an association under the Karnataka Apartment Ownership Act, 1972. Co-operative societies should not be formed in residential apartment complexes.

Such associations are governed by the provisions of the Karnataka Apartment Ownership Act, 1972. Advocate Beena Pillai, counsel for the petitioner, presented the arguments.