DELHI APARTMENT OWNERSHIP ACT, 1986 & ITS IMPLICATIONS

This legislation proposes to meet the persistent demand for statutory recognition of an
apartment as a unit of property, capable of transfer and for statutory recognition of an
apartment as a unit of property, capable of transfer and for a statutory organisation clothed
with adequate powers for management of common areas in multi-storeyed buildings.
In the past, the regular construction of apartments in Delhi used to cause avoidable litigation,
as the rights and obligations of the apartment owners and associations weren’t set in stone,
legally. So in the year 1986, the Delhi apartment ownership Act was drafted and passed by
the parliament.
The Act clarifies the rights and obligations of apartment owners, such as in relation to
inheritance, restrictions on transfers like mortgage and sale, and the right to common areas
and facilities.1

The Key Features of the Act

1. Applicability of the Act

The Delhi Apartment Ownership Act, 1986 is applicable to all multi-storied apartment
buildings, with at least two stories and four units, constructed by any group housing co-
operative society, person, or authority, before or after the commencement of the Act. The Act
is applicable to the whole of the union territory of Delhi.

2. Bye-Laws to be framed as per administrator’s Model Laws

The bye-laws framed by any association of apartment owners should be exactly in
accordance with the model bye-laws framed by the Administrator. In case the association
wishes to make any changes, the members of the association require a prior approval from the
Administrator.

3. Apartments to be heritable and transferable

According to the Act, every apartment, including its common areas and facilities, will be a
transferable and heritable immovable property. The apartment owner can transfer his
apartment and his share of the non-partitioned common areas and facilities by way of lease,
mortgage,
1
https://www.societyconnect.in/pdf/delhi1.pdf( last visited on 06-12-20)
4. Common Areas and Facilities to be used by all apartment owners for intended purposes
All common areas and facilities will be available for use by all apartment owners. The
common areas and facilities will not be divided or partitioned. Each apartment owner will use
it for the purpose that it’s intended for, without hindering or encroaching upon another
apartment owner’s right to use the space.

5. The Common Profits and Expenses to be shared in a certain proportion

The profits will be distributed, and the expenses charged, to all the apartment owners in
proportion of the percentage of the undivided interest they hold in the common areas and
facilities. Sometimes it so happens that the apartment owner isn’t an occupant of his or her
apartment. In this case, the person currently occupying that apartment needs to pay his or her
share of the common expenses.2

Reasons for Non-Implementation of act:

1. It did not provide for penal action in case of violation of its provisions.
2. No provisions for appointment of competent authority.
3. Rigid procedures of transfer, inheritance and sale of apartment blocks for apartment
Owners in the city.
4. It does not provide full ownership rights (Under this act owner’s only get occupancy
rights)
5. Rigid process of buying or selling houses.

Present situation
To address the problems of owners of apartments in the national capital, the Government is
mulling introduction of a fresh Bill to replace the Delhi Apartment Ownership Act, 1986. The
new Bill will be brought in to address the concerns of apartment owners in the city. As there
is no clarity in the existing act and it has not been enforced fully yet. So there is a need for its
complete overhaul to implement its various provisions. It also aims to provide full ownership
rights and simplifies the process of buying or selling houses. As of now, owners only get
occupancy rights.3

2
https://www.commonfloor.com/guide/the-delhi-apartment-ownership-act( Last visited on06-12-20)
3
https://www.thelawmentor.org/post/delhi-apartment-ownership-act-2009
Conclusion:
The Delhi Apartment Ownership act, 1986 was enacted to regulate Multi-storied residential
buildings and to enable the conferment of heritable and transferable right in an apartment
Including its proportionate and undivided interest in land and other common areas. But due to
lack of proper legal implications in the act the act was not stringent enough to regulate Multi-
storied residential buildings. Due to lack of clarity in the existing act as it was not enforced
fully. So there is a need for its complete overhaul to implement its various provisions.