1) Using increased FSI in future – The builder is interested in using the increased FSI which will be awarded by the govt. for that area in the future. If the ‘Society’ is formed, then the increased FSI will be owned by the Society and the builder does not have any right on it. But if it is an Apartment, then the builder owns that increased FSI and can use it anywhere. Thus the builder will keep taking advantage of the FSI increase throughout in the future.

2) In an apartment, the builder retains the ownership of the open spaces which are not included in the saleable are. Example – Terrace, or any open parking/stairs space which is not included in the saleable area. But incase of Society, the builder cannot retain any right on any of these areas and has to hand over everything to the society.

3) Rules of ‘Society’ are binding on all the residents and nobody can follow his/her whims. So if the society decides to ban any objectionable commercial activities in the flats (such as noise-making music classes or using the flat for catering activities etc.) or not to rent out to bachelors etc., then all the residents have to abide by it. But if it is an Apartment, then owners can violate the apartment rules and the apartment body can just file a case in the civil court. And while the society disputes are resolved in a separate court (dedicated to cooperative society matters) and hence they are fast resolved, the Apartment matters have to be taken to the normal Civil Court and hence they typically take years and decades to resolve.

4) When the buildings go for redevelopment after 25-30 years, the ‘Society’ decision will be final and hence the society members will have negotiation power with the builder at that time. But if it is an apartment, the consent of every resident is required and hence it goes into an endless delay due to lack of a common decision acceptable to everybody. There are many instances in Mumbai wherein finally the buildings had to be forcefully vacated by court order due to this delay since they became unlivable. Thus while the decisions are taken on a ‘majority’ basis in society, the apartment goes with an ‘acceptable by everybody’ rule. So if the builder has retained even one flat in an apartment, he will play a veto card in his favour at the time of redevelopment.

5) In society, Society is the owner of the property and all the flat holders are its members. All the flat holders have equal share in the property of the society. Nothing common is supposed to be reserved for anybody. 

6) In Apartment, the share of the flat holder is different (proportionate) as per his/her area of Flat occupation. There can be reservations by the members such as parking, common terrace and easement rights. Also, if there is any excess FSI available, or would be available, builder can reserve it for himself and utilise it at any other place.