India, March 20 -- The management of common areas and facilities of a housing complex must be transferred from the real estate developer to an apartment owners association once it is registered, the National Company Law Appellate Tribunal (NCLAT) has said, strengthening homebuyer's rights by ensuring that they take charge of residential societies even if a project remains incomplete.

An NCLAT chairperson Justice Ashok Bhushan-led bench ruled a real estate company cannot resist the transfer of maintenance responsibilities to the association once it is registered. "The law clearly envisaged, handing over possession, handing over common area and facilities to the association after registration of association," said the bench, which included...