Hyderabad: Resident Welfare Associations legal entity status restored, can operate bank accounts

Hyderabad: A news that came as a relief to many Resident Welfare Associations (RWAs) across the city, the revenue principal secretary issued a statement on Monday, allowing all RWAs to continue their annual general meetings.

This reverses the order in a 2019 circular from the government that deeply impacted many RWAs. This circular had halted their ability to update reports, maintain accounts, and operate bank accounts due to a High Court order.

The new statement now allows pre-2013 RWAs to register and amend documents as legal entities which is a huge benefit for them, as hundreds of RWAs established under the Societies Act, can alter existing documentation and register new RWAs as legal entities.

What are annual general meetings (AGMs)?

Residents of housing societies, apartment complexes, and gated communities form groups, which play an important role in improving the quality of life in their neighbourhoods. They are in charge of different areas of community life, such as maintenance and security, as well as social activities and infrastructure development. For all these functions, they maintain AGM reports, financial statements, and the capacity to handle bank accounts to manage cash effectively.

What was the 2019 circular and its effects?

The Commissioner and Inspector General of Stamps and Registration issued a circular in 2019 barring the receipt of AGM reports, accounting, and other related functions. A High Court order was mentioned in the order.

The circular essentially interrupted the aforementioned critical functions needed for running the communities. RWAs, which were used to maintaining their own comprehensive financial reports and organising regular AGMs to include residents in the decision-making, were thrown into a bureaucratic labyrinth.

The ruling prevented the RWAs from updating their AGMs and maintaining or operating their bank accounts.

Because they were unable to inform AGMs, they were unable to address critical concerns or map a clear route for community growth. Furthermore, without clear access to their bank accounts, their capacity to handle community funds for maintenance, facilities, and key services was hampered.

How was this problem resolved?

Marri Rajshekar Reddy, Malkajgiri TRS in-charge, took the matter with the government officials concerned. Along with the U-FERWAS (United Federation of RWAs), Rajshekar Reddy organised many meetings with the officials, including Navin Mittal IAS, principal secretary, and revenue, and ensured that the RWAs requests were heard.

During the meeting, Rajshekar Reddy assured that these RWAs could continue to do their critical tasks without being hampered. The UFERWAS commended Rajshekar Reddy in a statement for his continuous cooperation in ensuring the memo was released, putting several concerns about RWA registrations and papers to rest.