41. Can the member sell the flat to the builder and if yes what should be the rate able value.
The member can offer his flat to the Builder and negotiate for a suitable amount. If the member is not satisfied with the Builder’s offer, then he has to wait till the redevelopment takes place and then sell the same to the outsider at a price of his choice.
42. Who would sell the additional flats – builder or the members
The additional flats will be sold by the Builder to recover the cost of his project as well his profit.
43. Whether the existing members will get first choice of selecting flat for themselves considering the location, floor etc. What happens if more than one member makes choice of the same flat in the new building? Till the member is fully satisfied in all the respect, he may not give final consent for the redevelopment as well as the possession of his existing flat.
The allotment of Flats should be made in the General Body before demolition of the existing buildings. After signing the redevelopment agreement with the Builder, the BMC gives I.O.D. After the Terms and
Conditions of the I.O.D. are fulfilled, Building Commencement Certificate is received. After the same is received, the members should insist for Permanent Alternate Accommodation Agreement to be signed between the Member, the Society and the Builder and get the same registered. After signing of the same, Stamp Duty should be paid on the same and the same should be got registered with the Registrar. This Agreement gives full title of the new flat to the member and on the basis of this agreement, he can even
sell the Flat.
44. What is the permissible height in view of the fact we are on the flight path
Depending upon the exact location of the building in the Development Plan of the City, the height permission will be give by the Civil Aviation Dept. from whom permission will have to be obtained.
45. Is there any restriction in view of our location in view of ‘Costal Zone’– are we within than limits?
Your area does not fall within the Coastal Zone. Only if the Plot is located within 500 metres of the sea, the plot falls under the Coastal Zone.
46. Can the Society appoint our own architect and if yes to what extent the said architect will have say in the planning and designing of the scheme and whether the developer will bear the fees of the architect appointed by the Society.
The Society can appoint their own Architect or better a Project Management Consultant to look after the interests of the members. The Society can put a condition in the Tender Document as well in the
Development Agreement that the fess of the Architect/PMC shall be borne by the Builder.
47. How long will it take to complete the total redevelopment of the Society’s building proposal.
Usually the entire project is completed by the Builders in 24 months.
48. Whether the Developer will give bank guarantee for uninterrupted completion of the project, fulfilling the contractual obligations expected from the developer under the redevelopment agreement. Can there be a penalty clause for non fulfillment of the contractual obligation expected from the developer under the redevelopment agreement and if yes, whom the benefit goes under the said penalty clause.
Yes, the members will have to include the clauses for Bank Guarantee, Penalty for non fulfillment of contractual obligations etc. in the Tender Document as well as redevelopment Agreement. For ensuring that this is done correctly, the Society should appoint a PMC and take their assistance.
49. What are the formalities to be carried out by the Managing Committee and the Sub-Committee for redevelopment to ensure smooth beginning and completion of the project under redevelopment.
Since redevelopment can best be handled by professionals, it would be necessary for the Society to appoint proper consultants or a PMC for seeking advice on all the intricacies of redevelopment and follow them scrupulously.
50. What about the stamp duty and registration charges whether it will be applicable to the existing members when they get their new flats in lieu of the old one under the redevelopment scheme and if there are such charges , then who will bear these charges. Is there any capital gain arising out of the redevelopment scheme under which the existing members will get new flats with addl. Carpet area. If yes what the way in which it will be computed and how it will be taxed in the hands of the members.
Ans : The Society should make it a condition in the Tender Document as well as the Redevelopment Agreement that all charges like Stamp Duty, Registration, etc will be paid by the Builder. The members are getting additional area by way compensation for surrendering their old flats. Hence, there is no question of Capital Gain on this account. Further, it has been held by the Courts, that Corpus is the income of the Society and the Society is liable to pay the Income Tax on the same. However, depending upon the amount of corpus received by the member during a financial year, the member is well advised to consult a Tax Consultant to confirm whether he will have to pay any tax after including same with his Income from Salary and Other Sources.
51. BMC permissions/objections regarding redevelopment, BMC norms for new buildings regarding parking / water connections etc.
These things would be taken care of by the Consultants/PMC appointed by the Society and the Builder.
52. What will be the role of M/s. R. S. Prabhu Associates concerning architect, legal Advisor, Chartered Accountant, if appointed by our Society as “Project Management Consultant” and what will be the terms regarding scope of work and payment.
If we are appointed as PMC, the Society will have every thing under “Single Window System”. There would be no need to appoint separate consultants like Chartered Accountant, Architect, Civil Engineer, Structural
Engineer, Manager etc. Further, there would be no need for the Managing Committee to co-ordinate with various consultants as all the Consultants will be available under a Single Window System.
53. Can a minority stall the chances of a Redevelopment project ?
Ans : Depends on what proportion of minority you have. As one or two members cannot hold the society to ransom on flimsical grounds.
54. What action can the society initiate against those members who oppose such kind of a move that is supported by a huge majority ?
Ans : ……………………….To the extent of Expulsion from the society.
55. Does a Society require to form a Redevelopment committee, or can a M C carry out the job independently?
Ans : The G B has the powers to decide on this issue. Appointing a Redevelopment Committee is not mandatory.
56. What is the minimum or Maximum period a Redevelopment Committee can operate and what kind of powers can be bestowed on them ?
Ans : Again the G B decides on this issue. As it should generally be till the project is completed.
57. Do we require to hold elections for selecting a Redevelopment Committee.?
Ans : You may, you may not. Since this procedure is just for declaring the transparency in the system. As the rules of election are not binding on this selection.
58. If the quorum for a Redevelopment Meeting is poor, how does one go about with the matter?
Ans : You need the majority for carrying out such projects.
59. Can any important decisions be taken in a general body with 50 or 60 % members present ?
Ans : No
60. Any decision taken in such meets, are they binding on those who have not attended the said meet ?
Ans : As explained above
