21. Can one or two members hold the Society to ransom on flimsy grounds?
No member of the Society can hold the Society to ransom on flimsy grounds. The Society will have to initiate action against such members, the High Court has ruled in no. Of cases against such members compelled them to vacate the premises.
22. What action can the Society initiate against those members who oppose such kind of a move that is supported by a huge Majority?
Then Society can issue show cause notice to the members and take action even to the extent of Expulsion from the Society. Further the society can move the application before appropriate the authority/court to evict such members.
23. Does a Society require to form a Redevelopment Committee or can a Managing Committee carry out the job independently?
Ans : The General Body has the powers to decide on this issue. Appointing a Redevelopment Committee is not mandatory but is highly recommended to ensure transparency in the dealings. However the General Body should decide the duties of redevelopment committee member their elections
powers, responsibility etc.
24. What are the Powers of the Redevelopment Committee?
The General Body has to decide on the powers to be granted to the Redevelopment Committee. Generally the following powers are to be given to the Redevelopment Committee:
- To approve or reject the proposal received by the society and then handover to Managing Committee for furthers course of action.
- To give suggestions, if any, regarding the Proposal placed before them by society.
- To supervise the work in construction with PMC attend the meeting with PMC.
- To visit the site.
- To find out the credentials of developer.
25. What is the tenure of the Redevelopment Committee?
Generally the tenure of the Redevelopment Committee should be from the start of the Project to the completion of the Project to ensure the continuity of the control of the Project.
26. Whether elections are to be held for selection of members for the redevelopment Committee?
The Election Rules are not binding on the Redevelopment Committee. They should be selected by the General Body from amongst senior members of the Society who are educated to read and understand the various Documents and have active interest in redeveloping the Society. However the society can also decide general Body meeting how to elect the redevelopment committee member and the process of the elections.
27. Can a Redevelopment Committee / member of a Redevelopment Committee be terminated?
If the General Body feels that a member of the Redevelopment Committee or the entire Redevelopment Committee acts to the detriment of the interests of the Society and obstructs the working of the Managing Committee in carrying out Redevelopment, then on the recommendation of the General Body, the tenure of a member a Redevelopment Committee or the entire Redevelopment Committee can be terminated.
28. What are the points to be noted for successful Redevelopment?
- The offer received from the Developer should commensurate with the potential of the Plot taken for redevelopment as per Architect’s report.
- The Builder should be strictly chosen on the basis of his Financial Capacity and Track Record and not on the basis of the highest offer received.
- The Tenders received should be objectively evaluated by an able Architect appointed by the Society.
- All the members of the Society should give their Consents to avoid disputes.
- Complete details of the offers made by the Developer should be clearly understood by all the members of the Society and there should be transparency in the dealings.
- Redevelopment Committee should be formed from amongst the other members of the Society by including two or three members from the Managing Committee to oversee the entire redevelopment process to ensure that complete transparency is maintained by the Managing
Committee of the Society. - All Agreements / Documents should be got scrutinized by a competent Advocate appointed by the Society to ensure that there is no lacuna.
- Bank Guarantee for the total cost of the Redevelopment Project should be obtained from the Developer covering the full period of construction.
- Penalty Clause should be inserted in the Redevelopment Agreement to ensure proper implementation of the Project by the Developer.
- The Managing Committee and the Redevelopment Committee members should conduct regular inspection when the construction is in process to ensure that there are no deviations from the plans / offers.
29. Can Redevelopment take place on Collectors land?
Yes, definitely with permission of Collectors.
30. Has it happened in the past and if yes, kindly give name and address of the Society wherein being Collector’s land, redevelopment has taken place.
Yes, redevelopments have already taken place on Collector’s Land where the Lease Agreement of the land is still in force. Our Association has not maintained the list of buildings which are being redeveloped, either on private land or on Collector’s Land. However, if the members’ require the said information, they may be obtained by applying to Collector’s Office under RTI.
31. If so far if not a single case redevelopment has taken place on the Collector’s land, then how do you think that in our case we will be able to get required permissions even though the land is that of Collector and the condition of the existing building as per the report of the municipal approved structural engineer does not warrant redevelopment and can be corrected by repairs.
As already stated earlier, redevelopments have already taken place on Collector’s land. Since redevelopments are permitted on Collector’s land, you will have to take special permission from the Collector for redevelopment. Permission from the Collector for the redevelopment of the Society’s
Buildings can be obtained if the resolution as per the govt. Order dated 03.01.2001
32. Will there be any change in the existing agreement between the Collector and the Society, and if yes, what will be that. At present on every transaction of sale and change of membership the new member is required to pay to the Collector @ Rs. 100/- per Sq. feet. What will be this after the redevelopment and whether any payment required to be made by the existing members on the addl. Carpet area each member would be getting over and above his existing area under the scheme of redevelopment?
After redevelopment on Collector’s land, the terms and conditions will change. The Collector will ask for higher premium for transfer of flat. These changes in the Terms and Conditions will be intimated by the Collector when the Collector gives permission for redevelopment. The Collector will ask premium on the extra area received by the members; however the builder can be made to pay the same by including it in the Redevelopment Agreement. Since the extra area comes to the members as compensation, it will be free for the members, but the Builder will have to pay premium on the construction cost of the additional area.
33. Is it a must that 100% of the existing members should give consent in writing for the redevelopment? What happens if 4 members out of 64 do not give their consent for redevelopment?
Earlier, 100% Consent of the members was required for redevelopment. Even the Collector was insisting for 100% consent of the members. Now, if the majority of the members approve for redevelopment in
the General Body Meeting, then the BMC as well as the Collector are giving permission for redevelopment. The High Court has also given decision that minority in a Society cannot stop redevelopment when the benefits are going to the majority of the members (including the non consenting members)
However, the Society should pass the Redevelopment Resolution in a democratic way by properly adhering to all the Bye-laws of the Society. In such cases, even the members who have not given consent will get equal benefits. In case, the non-consenting members plan to go to Court to bring a stay in redevelopment, the Society can file Caveats in the City Civil Court, Co-operative Court, High Court as well as the Registrar’s Court. The cost of filing Caveat will be about Rs.25000/- in each Court. If the situation
demands, we may have to do it. There are now Special Courts for trying Redevelopment matters. Under Section 35 of the MCS Act, if anybody tries to bring hurdle in the redevelopment, the Society can even expel him from the membership and auction his flat. The society should follow the guide lines given under order dated 03.01.2009.
34. What happens in a particular case the flat on rent, legal case pending in the court for vacation, the tenant is ready to give his consent provided the status quo is maintained i.e. the alternative accommodation is given to the tenant and on completion of the project the new flat should also be given to the tenant. The owner is not prepared to give her consent. In another case, on the death of the member, the flat could not be transferred to heirs as there was no nomination, no will and no succession certificate and therefore consent to be taken from whom it is not clear. How to deal in this case.
Ans : In such cases, it will be necessary to take directions from the Court. Even Consent Decrees may be filed in the Court to settle the matter quickly.
35. What happens if a member has more that one flat in his own name or in the name of his family members, family as defined in the bye laws, which is in contravention of the bye laws, how to deal such cases and what is the best way to regularize such cases.
As per the earlier Bye-laws, one person could hold only one Flat. However, under bye law no. 62 of the new Model Bye-laws, Individual member of the Society may hold more than one flat in the building/s of the Society in his name or in the name of any of the members of his family subject to the conditions as provided under the provisions of section 6 of the “Act”. The member has to obtain the permission from the Society, Registrar of the Co-operative Housing Societies and the Collector MSD by applying in the prescribed Form “Appendix 30” (under bye-law no. 62) giving reasons why he needs more than one flat (such as size of the family) along with the declaration that both the flats will be used by him and his family members for bonafide residential purposes and would not be sub-let or given on leave and license or care-taker basis or possession thereof would not be parted with any other manner, without the previous permission of the Committee of the Society.
36. What happens in case one of the members brings in a Court stay order
It would not be possible for one person to bring a Court Stay Order unless the Society has made serious violations in following the rules of MCS Act and as per the Bye Laws of the Society while passing the Resolution for Redevelopment. Before passing the resolution, the Society has to attend to all suggestions and objections received from the members satisfactorily.
37. List of the permissions to be obtained for redevelopment from the various agencies. How long does it take to get approvals from these agencies. Is it feasible and advisable that the Society obtains these permissions considering limited resource available with the Society or it should best be left for the developer to obtain with proper agreement with the developer?
More than 50 permissions are required to be obtained from various agencies before going for Redevelopment. It would be difficult for the Managing committee to apply and follow up for these permissions. Further, lot of expenditure will have to be incurred for getting these permissions. Hence, it is best to make it a condition in the Tender Document that the Builder will obtain these permissions at his cost.
38. What is the ratio of FSI? Is it possible to get addl. FSI on Collector’s land and if yes, how much. If not, TDR can be bought to what extent. At present ours is totally residential building, after redevelopment can ground floor be converted into commercial one? Whether the Balcony is included in FSI as per present rule of the BMC and what about the parking space for each existing member of the Society.
At present, the permissible FSI is one. Hence, you can have built area upto one. However, you can purchase one TDR from the market and have built up area up to two. Balcony is not included in the FSI. 10% of the master carpet area is permitted for Balcony free of FSI. Parking area should be provided by the Builder. It is to be decided in the General Body Meeting of the Society, how the Builder should allot Parking Space, who will have the stilt parking and who will get open parking. There is no adding FSI on
Collect land. In suburban collector land it is having I-FSI and I-TDR. Yes, provided same is approached by BMC (commercial question).
39. What would be the benefits for the Members in Cash and in terms of additional area from redevelopment proposal. How much addl. Carpet area in terms of percentage of the existing carpet area members can expect from the developer out of redevelopment. Kindly specify extent of the other benefits and amenities we can expect from the developer under redevelopment proposal such as corpus fund, modern amenities, alternative accommodation and security for it during the period of completion of the proposal.
Ans : The Builder generally allows 15% to 25% increase in the carpet area of the members depending upon the potential of the area. The amount of Corpus that the builder will give depends upon the amount that he will earn by selling the additional flats to the outsiders. If, he develops some commercial area, then he is likely to make a better profit in the project and also offer better corpus and amenities to the members. However, the Society should demand and include the amount of Corpus and amenities that they would like to receive in the Redevelopment Agreement itself.
40. Where would be the members stay when the area is being redeveloped and whether the existing members will have choice to select the alternative accommodation during the period of construction of the new project? Are we right in presuming that the rent will be paid for the alternative accommodation by the developer? How to make it quite secured that till the rent for the alternative
accommodation is paid by the developer till the completion of he proposed new buildings and the existing members get due possession of their selected flats in the new building constructed under the redevelopment.
Ans : The members will have to move to alternate accommodation of their choice during the period of redevelopment. The builder will pay the rent for the same. The amount of rent to be received from the Builder should be decided in advance and included the redevelopment agreement. The members may ask for the full rent for 24 months in advance to ensure that full rent is received.
