Mumbai-based Oberoi Realty (ORL), the country’s second-largest developer by market capitalisation, has run into a dispute with its buyers over their Oberoi Splendor project. The residents have alleged misappropriation of funds, delay in forming residents’ society, deficiency in services and change in plans of the project.

At the crux of the dispute lies an alleged delay on part of ORL in forming a registered co-operative housing society though the possessions were given in August-September 2011, residents claimed. The residents of the Jogeshwari-located Oberoi Splendor said as there is no society of the building, ORL is “misappropriating” maintenance funds, property tax, transfer money earned from sale of flats in its possession, among other charges, which they said should have gone to the society funds.

The residents of the building, who are believed to have paid between R80 lakh and R1.5 crore for their apartments, are now asking for Rs 600 crore as compensation through an internal residents body called Oberoi Splendor Flat Owners’ Association (OSFOA) over alleged irregularities in the services.

This body of the residents with around 400-odd members filed a case in a lower court in Mumbai two weeks back against ORL, alleging non-formation of the society and related matters. A copy of the same was shared by them with FE. The residents in their appeal said ORL ?avoided to form a co-operative society as the Defendant No.1 (ORL) is interested in commencing further construction on the land whereupon the buildings occupied by the members of the present association is situated…without obtaining any permission from the flat owners of the Oberoi Splendor Building?.

ORL?s chairman and MD Vikas Oberoi did not respond to the mails sent for his comments on the matter. However, a statement shared by ORL said, ?We had provided options for society formation on May 14, 2012. Subsequently, the Interim Association of Oberoi Splendor residents conducted a town hall to discuss those alternatives. ORL has taken necessary steps to form society.?

The company denied all other claims of the residents.

According to the Maharashtra Ownership Flats Rules, 1964, it is mandatory for developers to form a co-operative housing society within four months from the date on which 10 people have taken possession.

Separately, a spokesperson from the CMD?s office told FE at Oberoi Splendor last week, ?According to ORL’s open books policy, we have been maintaining statements of accounts of all maintenance and other charges collected from residents and have also shared them with residents from time to time. Once, the society is in place, all the monies will be transferred to them.? The company shared their account statements with FE, adding that the residents had also appointed an independent auditor firm, Borkar and Muzumdar, last year to audit these statements, a copy of the firm’s appointment was also given to FE. However, its findings were not immediately known.

OSFOA’s another claim is that ORL has done changes in the plans and layout of the building without consulting the flat buyers. They said the area where Oberoi Splendor Grande’s relatively higher-priced apartments are being built was originally designated for a bamboo garden/amphitheatre. “MOFA states that if the builder undertakes changes in the plans of the project, he should take consent from the flat buyers for the same. We were never told about these changes,” said a senior member of OSFOA.

The company, however, said that the plan to have seven towers in the plot was always there. “We have all the plans and requisite approvals in place which show that this plot was to house seven buildings,” the company spokesperson said. The resident, in a report, claimed there are difference in the carpet area of each flat. ORL rubbished these claims.