81. Can there be a penalty clause included against the builder for Delay or denial of possession, or O.C or any other statutory requirements ?
Yes
82. Who is responsible for procuring Electric, Water, Sewage and other mandatory requirements, as also the R C C ? B C C certificate ?
The Developer / Builder
83. Does M S W A help in sorting out a redevelopment project ?
Yes
84. Can M S W A provide legal assistance and other support ?
Yes
85. Can MSWA arbitrate for any unwanted situation through a redevelopment project?
Yes
86. Can tenants redevelop the property without the owner ?
The Redevelopment can be done with the consent of the owners only. If the owner is not available and the building is in a dilapidated condition, a petition can be filed before the Competent Court against the land owner who is neglecting the repairs the builder or does not take any step towards the Redevelopment. In case the court gives a favorable order, the tenants can proceed with the Redevelopment.
87. Society accounts are not properly maintained. Who should be made accountable?
It is the responsibility of the Managing Committee to maintain the accounts properly. In case the same is not maintained, the complaint can be filed before the Deputy Registrar who will conduct the enquiry and fix the responsibility. In case any fraud is noticed, each and every committee member will be jointly and severally responsible to make good the loss and therefore, each committee members are now required to sign the Indemnity Bond in form M-20 on a stamp paper of Rs.100/-.
88. Society is under private forest land & we are waiting for supreme court judgement. If verdict is delayed what should be done?
No action will be taken by any Authority till the matter is decided by the Supreme Court. Therefore, you have to represent before the Supreme Court properly and get the favorable order.
89. Society doesn’t go for open tender but they opt closed tender. Is it legally valid?
90. Can society ask for security deposit in escorts A/c instead of Bank guarantee
Open tender means the Tenders are invited by giving proper public notice and any person who fulfills certain conditions mentioned in the tender is allowed to file the Tender. When the Tenders are invited they have to be closed and sealed. The same will be opened in the presence of the members of the society, Project Management consultants. In case you mean to say that the Tenders should be accepted by the society in open form and any member is allowed see and evaluate before receipt of all the tenders is not a proper system. In case you mean to say that the society has opted for closed tender means within the closed circle or from the selected developers, that system is wrong. It has to be called through public notice only.
The society can definitely ask for the deposit in the Escrow account. It is the terms and conditions that we mention in the Tender documents which is most important.
91. Can we go for redevelopment without taking conveyance & agreement
As per the Government Notification dated 3rd January, 2009, the appointment of Developer or builder can be done only after Obtaining the Conveyance of land and building in favour of the society. However, you can appoint a Project Management Consultant to procure the Conveyance of land and building and thereafter the same Project Management Consultant can proceed to prepare a feasibility report, Tender and invite the tenders etc.
Before conveyance appointing a developer is not only bad in law but also invite unnecessary disputes with the old land owner, old builder, new builder etc.
92. Can society opt for reconstruction instead of redevelopment
93. Why there is lottery system when members get a new flat & why there is no choice
There is no difference between Redevelopment or Reconstruction. The Redevelopment or reconstruction can be done by the society themselves which is know as Self Redevelopment/Self Reconstruction and if the same is given to the Developer or the Builder the same is known as Redevelopment through the Builder.
The allotment of the flat in the new building can be done by various methods. One of the method is by lottery system. Depending on the number of members and the issues involved, the allotment of the flats can be decided in the General Body meeting of the society as per the majority decision in consultation with Project Management Consultants(PMC).
94. Is there a law about control in redevelopment
95. What are the general problems for delaying redevelopment?
There was no provision or guidelines earlier in the process of Redevelopment.
96. After registration of redevelopment Agreement is it necessary to enter into individual agreement with existing members for the new flat allotted to them by the builder in the new building after the redevelopment and if yes, when the individual agreement has to be executed before vacating the old flat or at the time of receiving the possession of new flat?
Development agreement is executed between the Society and the builder to construct the new building on the land owned by the society by using available FSI, TDR etc and provide new flats with additional area to the existing members free of cost and also pay rent, corpus, shifting charges etc. as a consideration for allowing the redevelopment on the plot of land owned by the society. Thus this is an instrument/ document to record the transaction between the builder and the Society. By this instruments, the benefit of transfer of development rights has moved from the society to the builder. In turn the builder pays the consideration in the form of cheque for rent, corpus and in kind as a free flat of additional area to the members. When the cheque is given, being a movable item does not require any
additional document or registration.
However, when immovable property in terms of new houses in the new building is provided by the builder to the existing member as per the Development Agreement, a separate Agreement known as “ Permanent Alternative Agreement” has to be executed, stamp duty as per Bombay Stamp Act, 1958 has to be paid and also has to be registered. This is because, the new flat will have new number, new area and on the different floor which is provided by the developer. Her the flat constructed by the developer as per the development agreement is being transferred and handed over to the existing member. In order to establish the title of the new flat, a separate agreement in respect of the new flat has to be provided by the builder. As per the Transfer of Property Act, 1882, any transaction immovable property exceeding Rs.100/- needs to be in writing and has to be registered as required under Registration Act, 1908. In case the agreement for permanent Alternative accommodation is not executed between the builder and the existing members, the members will not have title document, they will not able to sell the flats in future nor they can mortgage and raise the loan. As per the amendment done, in the Schedule I to the Bombay Stamp Act, 1958, even, if the society gives an allotment letter in respect of the new flat in the new building, the same will be treated as agreement and applicable stamp duty will have to be paid. Therefore it is compulsory that you should get the agreement executed for new flat with the builder.
This agreement should be executed immediately on receipt of IOD (Intimation of Disapproval) issued by the society along with the approved plan and before vacating the existing old flat. This gives an assurance to the flat purchaser that the new flat number, area etc is identified. In case the builder fails to full fill his commitment, necessary legal actions by the respective flat purchaser against the builder can be initiated under Maharashtra Ownership Flats Act, 1963.
97. What is FSI and How much FSI is available in different areas of Mumbai
98) What is the FSI for slum related projects
99) When does a builder get a building completion certificate
Ans: FSI or Floor Space Index means the area of construction allowed on a particular land as per the Development Control Rules . In Mumbai depending upon the location of the land and type of existing residence and also the project to be developed, the permitted FSI varies.
Just to give you a example, the FSI allowed in South Mumbai (Mumbai City) is 1.33 for all types of construction. However, if the same is cess building, the FSI can range between 2.5 to 4 and it can go beyond FSI 4 considering the present consumption of FSI. Cess building is one, where the tenanted buildings have been taken over by the Mumbai Repair and Reconstruction Board for maintenance by charging a nominal amount as repair cess. When the same is redeveloped, the builder will get incentive FSI of 50% or 60% of the FSI consumed to rehouse the existing tenants. In such cases FSI goes beyond 6 or 7. There is no limit. For Mhada layout, the FSI is 2.5. In case of projects approved by MMRDA in Mumbai Metro Politian Region (other than Mumbai) under Rental Housing scheme, the FSI allowed is 4. In suburban the provision has been made for 1.33 FSI and TDR to the extent of 0.67 can be loaded. Thus total consumption of FSI/TDR comes to 2. Therefore, the Redevelopment is taking place in big way.
Slum Rehabilitation Authority(SRA) has declared certain areas occupied by Slum as the land on which SRA scheme can be developed in which the existing Slum people get 269 Sq.Ft carpet area free of charge. They should be settled in the place before 1995. The same may be extended to 2000. Necessary notification to his effect is awaited. The FSI allowed on such slum land is 4. Even after consuming four FSI, there will be additional construction which is allowed to the developer who has undertaken such development. In such case, the additional allowable construction can be loaded as TDR on other land.
Building when is ready in all respect and received the Occupation Certificate, the builder provides water connection, gets the plumber certificate and the Architect submits his certificate that the building is complete in all respect and all the conditions of IOD are fulfilled. The BMC will verify the certificate of completion given by the Architect and then gives a certificate, that the Architect report regarding the completion of building is completed. This is the last certificate issued by the BMC. Many times, the
builders provides the Occupation certificate and nobody bothers to receive the completion Certificate.
100. 0.33 FSI to be obtained by paying the premium to BMC. But why has it been closed for redevelopment?
Ans: In suburban area, the government has amended the Maharashtra Regional Town Planning Act(MRTP), to provide additional FSI by charging the Premium. Earlier notification was set aside by the High Court stating that such a provision to collect premium is not provided in MRTP Act. Since the amendment has already been done, the necessary notification will be issue by the government shortly and then additional FSI of 0.33 will be available for redevelopment in the Suburban area.
