Frequently Ask Questions – FAQ
If your Society is planning for Redevelopment, then the members of the Society should be familiar with the process for undergoing Redevelopment. The following points will make understanding the redevelopment process better.
1. What is Redevelopment?
Redevelopment means demolishing the Old Structure and replacing the same with New Structure with new Dimensions and Space.
2. What is the difference between Restoration and Redevelopment?
In restoration, the existing Building is extensively repaired and restored to its original condition. In Redevelopment, the existing building is demolished and new structure of different dimensions is constructed.
3. When should be redevelopment be considered?
As per Bye-law no. 77, Structural Audit of the Building is to be conducted when the Building is more than 15 years old. The Report of such Structural Audit would reveal the condition of the Building and indicate
whether the Society needs Redevelopment. If the building is between 15 years to 30 years old, the structural audit should be done once in 5 years, after the building getting 30 years old the structural audit should be once in 3 years.
4. Who is the authorised person to conduct Structural Audit?
The Structural Audit is to be conducted only by the structural engineer empanelled with BMC. The list is available with MSWA & BMC.
5. Can a Society go in for Redevelopment without conducting a Structural Audit?
Conducting Structural Audit is recommended. Since it is the first and the foremost step to be taken for deciding Redevelopment as Structural Survey is required to be carried out for both the building and the adjacent structures. If the building is old/repairs are major expenses Redevelopment can be decided.
6. Can a Society opt for Redevelopment if it is below 30 years of age?
It all depends on decision of General Body, members request.
7. Can a Society opt for Redevelopment even if Structural Report does
not recommend it?
Yes, The decision of the General body is important as per Govt. Order dt. 3.01.2009 with 75% majority.
8. If the member of the Society are not satisfied with the Structural Audit, can the Society get a second Structural Audit Report from another Structural Auditor?
Yes, by all means if the Society is prepared to bear the additional financial burden and Once structured report is submitted to BMC, 2nd Structural Audit is not to be done.
9. Do members need to prove their contention for demanding a double check on the Structural Report?
It is not necessary as a second opinion is always acceptable.
10. What happens in a situation where two contradictory Reports are received?
The General Body will decide which Reports needs to be accepted & send to BMC.
11. Which is preferable – Restoration or Redevelopment?
In case of Restoration of a Building by major repairs, though the beams and pillars of the Building are strengthened externally, the inner core composing of steel rods cannot be restored to its original condition. Hence, even after extensively repairing the Building, there are bound to be umpteen complaints about leakages requiring frequent repairs. In the case of Redevelopment, the entire structure being brand new, it will be free from complaints for at least 10 to 15 years
12. What are the Advantages of Redevelopment?
- Better planned and designed flats with earthquake structure with attached bathrooms in bedrooms will be available.
- Corpus fund received by each individual member will take care of increase in the maintenance cost of the Premises or could be utilised for other purposes.
- Additional area of 25-30% will be received as compensation from the Developer. Also, additional space, if available, could be purchased from the Developer at best available price.
- Modern facilities / amenities / gadgets like lifts, intercom system, smoke detectors, fire fighting alarm system, concealed plumbing, concealed wiring for electricity, telephone, cable TV etc. will be available.
- Stilt or under ground parking will be available which will ease space on the ground.
- Clubhouse, Swimming Pool, Gymnasium, Community Hall etc. will be available.
13. What are the Disadvantages of Redevelopment?
- Any lacuna in preparation of Redevelopment Deed would result in a great loss to the members who are eligible for many perks in consideration of giving permission for the project.
- For considerable period of time, members are required to give up possession of their flats which disrupts their age old routine.
- Residential Complexes if converted to Commercial Complexes are seldom preferred for housing purposes or dwellings.
- Additional new members would take longer time to gel with the original members, resulting in disputes on various issues.
- Additional members will require extra consumption of water creating scarcity or shortage of available water supply.
- Additional vehicles will require additional parking space.
- New construction loaded with all kinds of modern amenities which will in turn increase the cost of maintenance to be paid to the Society.
- The Tax burden is high and in case the Occupation Certificate (OC) is not procured, Municipal charges and Water charges are high
- There is increase in Property Taxes.
- Additional area received will attract Stamp Duty and Registration Charge at current Market Price.
- There is always a fear of half way stalled project resulting in Court case.
- For starting Redevelopment process, the following process should be carefully followed.
14. When should a Society consider Redeveloping their Building?
The Society should consider Redevelopment of the building only if an adverse Structural Audit Report is received from an approved Structural Auditor appointed by the Society to do Structural Survey /Audit of the Building as per Bye-Law no. 77 and his report should clearly mention the details of defects / remedies / cost of repairs etc. and as per the decision of General Body called as per govt. Order dt. 3.01.2009.
15. What precaution should the Society take at the time of considering Redevelopment of their Buildings?
The Society should consider Re-development only if the Society has Conveyance Deed in their favour. Without Conveyance, the Society should not pass any resolution for re-development but should only move towards major repairs & appoint consultant or PMC to get conveyance or Deemed conveyance.
16. What should the Society do in case of a Structural Audit Report?
In case of adverse Structural Audit Report, the Society should circulate the said Report to all the members of the Society within one month of receipt of such report along with their recommendations and call for the consent of all the Members of the Society in writing within 14 days of circulation of Report giving their opinion whether they would like to go for Repairs or Redevelopment and adopt the structural repair to send in to BMC for then necessary action.
17. Whether individual consent of all the members is required for redeveloping the society’s buildings or only a Resolution by the General Body will be sufficient?
As per the Govt. Order dated 3.01.2009 a meeting of the society is which 75% of the members should be the present and 75% of the member should vote for redevelopment. The consent are of 2 type. 1) voluntary consent which need to be given by people who propose the redevelopment as per above circular and faculty the obtaining a consent through the legal process by appropriate Court or authority.
18. What is the consequence if Consent is not received from all the members for carrying out Redevelopment?
In case some member do not give consent we have to approach appropriate authority/court and force them to give consent.
19. Can a member change his decision after giving his Consent in writing for Redevelopment?
Consent obtained from the members is irrevocable and embossed with Rs.100/- stamp. Hence, once Consent is given by a member, it cannot be revoked. Only if a member has a strong reason to retract his Consent, then he has to follow the Legal procedure for proving his point of discontent for retracting his Consent. There is High Court judgement saying that consent one given for redevelopment cannot be withdrawn.
20. Can a minority of members stall the process of Redevelopment?
It depends on what proportion of minority is stalling the development and the reasons behind stalling the project. If the reasons for stalling the project are strong, then redevelopment cannot proceed unless the issues with them are settled. However high court has given a ruling that minority cannot stall the process of redeployment against the wishes of majority.
