CIRCULAR ON REDEVELOPMENT

CIRCULAR ON REDEVELOPMENT

All the Co-op. Hsg. Societies in the
State of Maharashtra u/s 79(A) of
MCS Act 1960 to pass order
regarding Redevelopment of
Cooperative Housing Societies

Govt. of Maharashtra
No. S.G.Y.2007/L.No. 554 /14-C
Co-op. Marketing and Textile Dept.
Date : 3rd January 2009
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Since there are large number of projects under process for Re-development of the Buildings of the Co-op. Hsg. Societies in the State of Maharashtra. We are in receipt of the numerous complaints received from the members against the Management of the Co-op. Hsg. Societies which are undergoing the Re-development process. The natures of complaint received from majority of the Co-op Housing Societies undergoing redevelopment are as given below.

1) While carrying out the process, members are not taken into confidence.

2) Transparency not observed in the Tendering process.

3) Appointment of Contractors in a haphazard manner.

4) Breaches of the provisions of the MCS Act, /rules and Bye-laws in the working of the society.

5) Lack of Co-ordination between appointed Engineer and Project Consultants.

6) Non preparation of Feasibility Report.

7) Proper procedure not followed in the selection of Tender.

8) Disparities in the Development Agreement.

And

Since, there are no laid down guidelines and / or firm procedures declared, based on the various complaints received and discussion held with the concerned experienced professionals the Commissioner for co-operation and Registrar a Co-op. Societies, Maharashtra State, Pune had appointed a Study Group under the Chairmanship of the Jt. Registrar of Co-op. Societies, CIDCO to consider various types of complaints on the subject and discuss the same with all the concerned parties in the Sector. The Study Group after discussion with all the parties in the Co-op. Housing field opined that Rules and Regulations for the Redevelopment of the buildings of co-op. Hsg. Societies are very essential.

As such, under Section 79 (A) of the M.C.S. Act 1960, the Government is issuing following Orders which are as under:

The following order will be called as “Order of Redevelopment of the Co-op. Hsg. Society’s Buildings”.

1) TO CALL A SPECIAL GENERAL BODY MEETING OF THE SOCIETY TO DISCUSS THE REDEVELOPMENT OF THE SOCIETY’S BUILDING/S.

For the Co-op. Hsg. Societies in which the Redevelopment work of the buildings is required to be undertaken, an application of requisition to hold a Special General Body Meeting of the members of the society to consider and discuss the Redevelopment Project and suggestions on the same, is to be submitted to the Hon. Secretary of the Managing Committee which is properly elected as per provisions of the society’s Bye-laws and also constituted as per the provisions of the MCS Act 1960. The requisition application is to be signed by not less than 1/4th of the total members of the society.

2) TO CALL THE SPECIAL GENERAL MEETING

As per Sr. No.1, on receipt of requisition for calling the meeting, the Managing Committee of the society, within 8 days of the receipt of the application, should consider the same and within a period of 1 month the Hon. Secretary will call the General Body Meeting of the members of the society giving 14 clear day notice for which acknowledgement will be collected from every member and maintained in the records of the Society.

Before holding of the meeting the committee shall call quotations from minimum five Architects or Project Management Consultants who are empanelled with the Government or any local competent Authority. After considering all the quotations received, the Special General Meeting will select one of the Experts.

The SGM will consider the business as per following Agenda.

(1) To take primary decision, after considering the demands and suggestions from the members, on the Redevelopment of the Society Building/s

(2) To select expert and experienced Architect / Project Management Consultant, who are empanelled by Government / local Authority, for the work of Redevelopment and frame Rules / conditions of their work.

(3) To submit the project of proposed Redevelopment of the building.

3) TO RECEIVE WRITTEN SUGGESTIONS FOR THE MEMBERS ON THE REDEVELOPMENT OF BUILDING

The members of the society can submit their inputs, suggestions, recommendations and also names of known experienced and expert Architects/Project Management Consultants for the redevelopment project. However this should be submitted to the Committee, in writing, 8 days before the date of the meeting. Further approval letter of the referred Architects / Project Management Consultants shall also be submitted stating that they are interested to take up work of Redevelopment.

4) DECISIONS TO BE TAKEN IN THE SPECIAL GENERAL MEETING (SGM)

The quorum for the SGM called to consider subject of Redevelopment of the society’s building will be 3/4th of the total number of the members of the society. In case of no quorum, the meeting will be adjourned for 8 days and if there is no quorum attained for the adjourned meeting under such circumstances such adjourned meeting will be dissolved considering that the members have no interest in the Redevelopment of the society’s building/s. On condition of attaining required quorum the suggestions, objections, recommendations and references placed by the members regarding Redevelopment of society’s building/s will be considered and noted in the minutes of the meeting along with the observations made by all the members. Thereafter a majority of 3/4th of the members present at the meeting is required to pass a primary resolution regarding the decision for Redevelopment of the society building. After the approval of the Resolution for Redevelopment the Meeting will consider following business.

(a) To approve the Terms and Conditions along with the scope of the work to be carried out by the eligible Architect / PMC who can be selected from the Panel of Govt./ Local Authority for the Building Redevelopment work.

(b) To submit proposal of Building Redevelopment Project.

5) TO CIRCULATE MINUTE OF THE MEETING TO ALL THE MEMBERS.

The Hon. Secretary of the society should prepare the minutes of the SGM and circulate it to all the members within 10 days. The acknowledgement against receipt of the copy of minutes taken from the members should be kept on record. Further, one copy of the minutes should be sent to the office of the Registrar.

6) TO ISSUE LETTER OF APPOINTMENT TO THE ARCHITECT / PMC

The Hon. Secretary of the society as per the decision taken in the Special General Body shall issue Letter of Appointment to the Architect / PMC selected by the SGM within 15 days of the meeting. Further the committee will sign the Agreement containing Terms and conditions passed in the SGM, with the Architect / PMC.

7) THE INITIAL WORK TO BE CARRIED OUT BY THE ARCHITECT / PMC.

a) To carry out survey of the Land and Building.

b) To seek information regarding the conveyance of the society’s land.

c) To seek information about available F.S.I. and T.D.R. for the building and land considering Rules of the MHADA / S.R.A. / Municipal Corporations, as applicable from time to time, according to ownership of the land and current provisions of the Government.

d) To prepare a feasible project report considering suggestions, references and recommendations made by the society members about the redevelopment taking into account the residential area, commercial area, open spaces, Garden, Parking, the specification of construction etc.

e) The Project Report shall be prepared and submitted to the committee by the Architect / PMC within 2 months from the date of their appointment.

8) BUSINESS AFTER RECEIPT OF THE REDEVELOPMENT PROJECT REPORT

a) After receipt of the Redevelopment Project Report and considering the suggestions presented by society members, the Hon. Secretary of the society will call a joint meeting of committee members and Architect / PMC to obtain approval from majority towards the submitted Project Report. A proper Notice mentioning the day, date, time, place etc. of the meeting will be displayed on the Notice Board of the society. The Notice will also inform that the copy of the Project Report is available to the members for the inspection. Also the members will be informed that they can submit their suggestions, before 8 days of the Committee Meeting. This Notice about members suggestions shall be given to every member and their acknowledgement, shall be kept in the records of the society.

b) The Hon. Secretary shall send all the suggestions received from the members to the Architect / PMC for their consideration, 7 days before the Jt. Meeting.

c) The said Jt. Meeting will consider the suggestions, recommendations received from members along with the opinion expressed by the Architect / PMC, and after detailed discussion on all the related matters and after incorporating the required corrections, the Project Report will be approved by the meeting. The provisional draft of the Tender will also be prepared and day, date and venue will be finalized for the next joint meeting for discussing and finalising the draft of the Tender document. The Architect / PMC will prepare the draft Tender for inviting competitive offers, where in the one of the primary requirements (Unchangeable) carpet area or corpus fund will be decided and considering the other technical aspects tenders will be invited. This will help to receive competitive Tenders from well known, expert and experienced Developers. The members of the society can forward this information to their choice of renowned and experienced Developers.

9) TO PUBLISH LIST OF TENDERS RECEIVED

(a) The Hon. Secretary of the society will prepare list of the Tenders received till the last day of receipt and publish it on the Notice Board of the society.

(b) Within 15 days of the last date of the receipt of the Tenders, the Hon. Secretary of the society will call the Special Meeting of the Managing Committee. The meting will be attended by the official representatives of the Developers where interested members of the society can attend as observers. All the received Tenders will be opened in the presence of all the people participating in the meeting. The Architect / PMC will conduct scrutiny of all the Tenders and prepare a comparative chart. The expertise, status, experience and competitive rates offered etc. will be examined by the Architect / PMC and a selection of minimum 5 Tenders and in case of less than 5 Tenders received, list of all of them shall be prepared to be placed before the SGM. The concerned Tenderers shall also be immediately informed accordingly.

10) SELECTION OF A DEVELOPER

a) The office of Registrar to appoint an Authorised Officer for the SGM.

With the help of the appointed Architect / PMC, selection of the developer to be carried out from those selected tenders, wherein the selection of one developer on the basis of experience, caliber, financial status, technical expertise and competitive rates is to be carried out in the Special General Body Meeting, where the committee will make an application, attached with the members list, within a period of 8 days, to the Registrar, C.S. to appoint an Authorised Officer to attend a Special General Meeting which is called to select one Developer from amongst the Tenderers selected by the Consultants. The Registrar will take decision on the application and appoint Authorised Officer.

b) To call SGM to finalise the Tender.

The Hon. Secretary of the society, for appointing the developer, shall within one month of the appointment of the Authorised Officer and with his prior permission fix day, date, time and venue of the SGM. The Notice of the said SGM will be issued 14 days before the date of the SGM which shall be hand delivered as well as sent to every member by Registered A.D. Post and the acknowledgements will be kept in the Society’s Records. Similarly the Representative of the Registrar’s Office will ensure the presence of the Official Representative of the Tenderers, whose Tenders shall be considered at the SGM. The Arrangement for Video Shooting of the SGM, at the expenses of the society, shall also be made. Only bonafide member of the society shall be eligible to attend the SGM. Members would require to carry their individual identification papers to attend the meeting. While submitting Redevelopment proposal for approval to the concerned competent Authority it is necessary that, the complete business of selection of Developer and allied matters are carried out in presence of the Authorised Officer.

c) If there is no quorum for SGM.

The quorum for the SGM shall be 3/4th of the total number of members of the society. If the quorum is not attained, the SGM shall be adjourned for 8 days. In case of no quorum for the said adjourned meeting, the meeting will be dissolved considering that the members have no interest in the Redevelopment of the society building. The subject cannot be brought before the any SGM for its approval for further one year.

d) The business in the SGM for selection of the Developer.

Authorised Officer from the office of the Registrar will attend the SGM to observe the business of the meeting. On the designated day, date and time of the meeting, only in the presence of the required representative and Authorised Officer and with the presence of sufficient 3/4th quorum as mentioned, the meeting will undertake the following business.

1. To give comparative information about the selected Tenders to be considered. (With regards to Redevelopment work).

2. To present Tenderers in serial order. (Tender Presentation)

3. To select one Developer, with Terms and Conditions, for the Redevelopment of the building and finalise the Tender.

4. To get approval from the selected Developer.

5. To give information about the further work.
For appointment of Developer, 3/4th majority of the present members shall give in writing their approval. The selected developers or their representatives who do not register their presence for the S G M will be considered as having given their consent for the Redevelopment proposal and further process will be carried.

11) DEVELOPMENT AGREEMENT

The Managing Committee as per the Terms & Conditions passed in the S G M in consultation with the appointed Architect / P M C and seeking their guidance, shall make an Agreement with the Developer within one month.
The Agreement as per the suggestions of the appointed Architect / P M C along with other important issues should also include the following points.

1. The completion period of Redevelopment shall be of not more than two years and in special cases not more than 3 years in case of any exigencies.

2. The Developer will give Bank Guarantee of 20% price of Redevelopment Project.

3. The Developer will try to give alternate accommodation to the members in the same area till the Redevelopment Project is complete. Otherwise he will pay monthly rent and Deposit agreeable to members or make available Transit Camps.

4. The Agreement will be registered under Registration Act 1908.

5. All the new members shall be admitted in the society after completion of the Redevelopment Project and after approval of General Body Meeting of the society only.

6. The Agreement shall have specific mention of the agreed Carpet Area.

7. The Development rights given to the Developer will be non transferable.

8. The flat owners will vacate their flats only after receipt of all the legal permissions for the Redevelopment work.

9. Those in possession of their flats will not loose their rights.

10. Agreement between contractor, Architect and society shall have a condition that disputes, if any, on the Redevelopment work shall be settled u/s Rule No. 91 of the Rules.

11. After receipt of the Occupation Certificate for the Redeveloped building the distribution of the flats should be preferably made in accordance to the prevailing arrangement of present floors. In case when the Allotment of flats is required to be made by lots, only after completion of the building the Developer should make available the lottery system after completion of the Redevelopment Project. The developer should arrange for draw of lots for the distribution of flats in presence of Registrar’s representative and video shooting of the complete process will be made.

12. No member of the Committee or Office bearer shall be a Developer or his relative.

13. The Building Plans which are approved by the Municipal Corporation / Competent Authority shall be again placed before the General Body Meeting for information. A member wishing to have a copy of the approved Documents can get the same on his written application. The Committee is bound to issue the information on charging a reasonable fee.

By Order and in the name of the Governor

(Dr. Sudhir Kumar Goyal)
Principal Secretary
Textile & Co-operation

C.C. : 1) Commissioner for Co-operation and Registrar of Co-op. Societies, M.S., Pune.
2) Divisional Jt. Registrar, C.S. (All)
3) District Dy. Registrar, C.S. (All)
4) inavaD nastI (14 sa )

Note: Above circular is the liberal translation of the original Marathi Circular

REDEVELOPMENT
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?

Ans : 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?

Ans : 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?

Ans : 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?

Ans : 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?

Ans : 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?

Ans : 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?

Ans : 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?

Ans : 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?

Ans : It is not necessary as a second opinion is always acceptable.

10. What happens in a situation where two contradictory Reports are received?

Ans : The General Body will decide which Reports needs to be accepted & send to BMC.

11. Which is preferable – Restoration or Redevelopment?

Ans : 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.

12. 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?

Ans : 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?

Ans : 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?

Ans : 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?

Ans : 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?

Ans : 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?

Ans : 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?

Ans : 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.

21. Can one or two members hold the Society to ransom on flimsy grounds?

Ans : 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?

Ans : 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?

Ans : 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?

Ans : 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?

Ans : 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?

Ans : 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?

1. The offer received from the Developer should commensurate with the potential of the Plot taken for redevelopment as per Architect’s report.

2. 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.

3. The Tenders received should be objectively evaluated by an able Architect appointed by the Society.

4. All the members of the Society should give their Consents to avoid disputes.

5. 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.

6. 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.

7. All Agreements / Documents should be got scrutinised by a competent Advocate appointed by the Society to ensure that there is no lacuna.

8. Bank Guarantee for the total cost of the Redevelopment Project should be obtained from the Developer covering the full period of construction.

9. Penalty Clause should be inserted in the Redevelopment Agreement to ensure proper implementation of the Project by the Developer.

10. 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?

Ans : 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.

Ans : 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?

Ans : 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?

Ans : 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.

Ans : 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

Ans : 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?

Ans 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.

Ans : 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.

41. Can the member sell the flat to the builder and if yes what should be the rate able value.

Ans : 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

Ans : 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.

Ans : 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

Ans : 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?

Ans : 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.

Ans : 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.

Ans : 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.

Ans : 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.

Ans : 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.

Ans : 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.

Ans : 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

61. Can the associate members vote in such meetings, will their opinion be considered ?

Ans : Yes, as are authorised to speak on behalf of the original member.

62. Selection of P M C , is it mandatory ?

Ans : Yes, It is advised since he plays a major role in the procedure.

63. Is it O K if we choose a P M C, Architect, Legal Consultant or an Advocate without advertising in the newspaper?

Ans : No It is necessary that you give advertisements before finalizing these professionals

64. Is it mandatory to issue an ad in the newspaper to announce our decision of going in for Redevelopment?

Ans : Not exactly.

65. Who guides us to formulate the Tender Forms ?

Ans : The P M C

66. Can we finalise the Tender Form with available quorum ?

Ans : Yes only if you have acquired the written opinion on this regard from all your members.

67. In a 50 – 50% situation, how does one go about with the finalization of a Tender ?

Ans : The G B is the final deciding authority

68. Who has the powers for selection or rejection of the Tenders ?

Ans : The G B

69. What is the procedure to accept or reject a Tender ?

Ans : a comparison Chart to be prepared. Call for suggestions and remarks from each member. Then a detailed discussion on the available feedback. The decision on any selection or rejection of a Tender is to be taken in a democratic fashion only.

70. If the G B is not in agreement with the selection or rejection of a Tender, what is the process to resolve such a situation ?

Ans : G B is the supreme authority for decision making.

71. If any member is unsatisfied with the process and procedure for selecting or rejecting a Tender, what is the recourse for him/her ?

Ans : He or she needs to start a dialogue with the concerned representatives and try to sort out his queries and questions. One should avoid the litigation path as it only leads to loss of time, money and energy, not forgetting the loss of long standing relations.

72. Can a member from the society participate in the bidding process ?
Ans : No

73. Can a member residing in the society apply for seeking the post of the Architect, Solicitor or Legal Consultant ?

Ans : Yes, with the consent of the G B

74. Can a member insist on detaching from the Redevelopment process, and instead demand a compensation to forgo his rights ?

Ans : By all means, as he needs to sort out his requirements with the developer.

75. Can members insist on particular Building Plan, Design, and amenities ?

Ans : Not really

76. Can the society demand both Bank Guarantee and Corpus Fund ?

Ans : Yes, since Bank Guarantee is considered as a Performance Guarantee and Corpus fund is Financial Security.

77. Does the society have the prerogative to decide the relocation plan ?

Ans : Yes before it is finalized.

78. Do the members have a right to demand frontage flats or shops instead of the prevailing position of their respective premises ?

Ans : Depends on your negotiating Skills.

79. Do the members enjoy first rights on the sale of additional area to be built by the builder ?

Ans : Not really

80. Can members select the quality of construction material to be used ?

Ans : Yes

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 ?

Ans : Yes

82. Who is responsible for procuring Electric, Water, Sewage and other mandatory requirements, as also the R C C ? B C C certificate ?

Ans : The Developer / Builder

83. Does M S W A help in sorting out a redevelopment project ?

Ans : Yes

84. Can M S W A provide legal assistance and other support ?

Ans : Yes
85. Can MSWA arbitrate for any unwanted situation through a redevelopment project?

Ans : Yes

86. Can tenants redevelop the property without the owner ?

Ans : 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 favourable order, the tenants can proceed with the Redevelopment.

87. Society accounts are not properly maintained. Who should be made accountable?

Ans : 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?

Ans : 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 favourable order.

89. Society doesn’t go for open tender but they opt closed tender. Is it legally valid?
2) Can society ask for security deposit in escorts A/c instead of Bank guarantee

Ans : 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.

90. Can we go for redevelopment without taking conveyance & agreement

Ans : 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 Consultnat 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.

91. 1) Can society opt for reconstruction instead of redevelopment
2) Why there is lottery system when members get a new flat & why there is no choice

Ans : 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).

92. 1) Is there a law about control in redevelopment
2) What are the general problems for delaying redevelopment?

Ans : There was no provision or guidelines earlier in the process of Redevelopment. Now

93. 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?

Ans: 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.

94. 1) What is FSI and How much FSI is available in different areas of Mumbai
2) What is the FSI for slum related projects
3) 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.

95. 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.

96. Is 100% consent necessary for redevelopment or 75% ?

Ans: The Government of Maharashtra has issued an order u/s 79A of the Maharashtra Co-operative Societies Act, 1960 on 3rd January, 2009 regarding the redevelopment of the building by the Co-operative Housing Societies. As per this Order, the Special General Body meeting in which builder has to be appointed has to be attended by 75% members and minimum 75% of the members present should select a particular developer. Thus for the redevelopment and appointment of the developer, may be with 56% of the total members will be sufficient( i.e 75% of 75%). However, at the time of vacating the premises, all the members have to given consent and vacate the premises as per the resolution passed in the General body meeting. In case, some member do not give the consent or vacate the premises, the society or the developer may move before the competent Court/ Authority and get the dissenting member vacated from his premises to implement the decision of the majority. There are many court rulings which has held that the minority cannot stall or create hurdle in the process of redevelopment. Therefore, it is advisable for the societies to compulsorily follow the guidelines , procedure and the system given in the above circular, which will facilitate the redevelopment very smoothly.

97. 1) Is Sec 79A of MCS Act justified? Why cannot the condition be imposed in intimation of disapproval
2) How many builders have complied & completed the project as per development agreement under order of sec 79A MCS Act

Ans: The Government of Maharashtra has been given under section 79A of the Maharashtra Co-operative Societies Act, 1960 to bring out any notification for the smooth functioning of the society. Since there was not standard practice adopted, transparency was lacking, confusion and litigation in the redevelopment has compelled the government to bring out the notification. This is very much justified and all the societies should adopt the same. I understand the Government has directed BMC to verify before issuing the IOD whether the society has appointed the developer as per the Govt Order and whether necessary approval has been given by the Deputy Registrar for appointment of the Builder. IOD cannot have this condition because, the IOD is given to the society based on the proposal submitted by the appointed builder. In case such order is not followed, the aggrieved members should complain to the Deputy Registrar and also to the Building Proposal Department, not to issue IOD till all the procedures laid down under the above order is complied with.

I do not have exact numbers but majority of the societies who have initiated redevelopment after 2009 have started to undertake redevelopment as per the guidelines given in the above circular.

98. 1) PMC appointed by society but fees paid by builder – pmc loyal to whom?
2) Developer to accept pmc as his architect –out of compulsion
3) Pmc fees-% project- too much for issuing members when the builder is going to get profit

Ans: Project Management consultants are appointed by the Society much before the selection of the builder and the developer. The terms and conditions of the appointment letter to PMC should mention that the amount will be paid by the society. The society should collect the amount from the Developer in its name and than pay to the PMC. The society should not all the PMC to receive the payment directly from the builder. If PMC receives the direct payment from the builder, the PMC may not be loyal to society. The builder may ask PMC to relax certain conditions/norms before releasing the payment. Therefore PMC cost should be recovered by the society in advance from the developer and pay to PMC in stages, if the PMC does the work according to the satisfaction of the society and as per the terms and conditions agreed upon. In such cases, PMC will be under direct control of the society.

I recommend that the PMC should have an architect whom the society has appointed to submit the plan and his name will be recorded in the BMC record as the society Architect. The builder should be given a free hand to conceive the idea, let his Architect give the inputs, prepare the plan but the same will be approved and signed by the Architect Appointed by the society. This gives a good control on the modification of the Plan. Once the architect is appointed by the society, before the plan is modified, he will have to take the approval from the society. This also acts as a good control on unscrupulous builder who influence the architect and construct some illegal construction and getting the OC become difficult.

One has to understand the scope of the PMC. The fees is based on the services availed. PMC service is not like a standard product like TV or electronic goods of certain brand which is available in the market with MRP. This is tailor made. The skill, experience and the quality of the services and the scope of the work offered as PMC is different and is based on the requirement of the society. Therefore it is advisable to get the details. Some PMC charge on lump sum basis and some charge on project cost and some charge on square foot basis. Some also charge on the different services and stage wise like preparing feasibility report, obtaining the documents like Property Card, City Survey Plan, Development Plan Remark, Aviation NOC etc. Survey Report, Measurement, Preparing the tender, tax planning, supervision, structural verification, approved plan verification, vetting of various documents, preparing documents etc.

99. Renovation done at heavy Exp… Can builder pay me ..?

Ans: In a society, members carry out different types of renovations in the flat and also many do the fixed furniture which cannot be dismantled. Every member has different circumstances and claims made during the redevelopment. Since the builder/ developer takes up the redevelopment based on the area of the land, FSI and TDR allowed, the same is being distributed amongst the members of the society based on the FSI purchased by them at the time of construction of the building. The society or the builder may not accept your claim of refund of renovation expenses. The builder or the society is not bound to give any extra benefits since you have done the renovation recently.

100. what is the law on about percentage (% ) required of members consent

Ans: As per the Government notification dated 3/1/2009, 75% members should attend the special general body meeting in which redevelopment decision is taken and the developer is appointed. In said meeting with majority of 75% of present members decision can be taken and is binding all all the members of the society.
Thus in effect 75% of the present members of the 75% of total members need to agree and approve the resolution for proceeding with redevelopment and appointment of the developer. This means even 56.25% of the total members are sufficient to carry out the resolutions for redevelopment.

However, 100% members should vacate the flats before the commencement certificate is issued by the BMC for construction of the new building. However, the BMC gives the IOD ( approval of the plan with certain conditions before demolition of the building on execution of the development agreement and appointment of the builder ).

If the members do not voluntarily vacate and give the consent, the due process of law will be initiated by the society and the member may be forced to vacate the flat not to become hurdle in the process of redevelopment. This has been upheld by number of high court judgments. Minority cannot stall the process of redevelopment . Thus voluntary consent or the forced consent by due process of law will be taken during the redevelopment .

101. one flat is used as community Hall

Ans: Since the community hall is given as a common asset by the builder to the society, the benefits thereof,if any will also be shared equally be all the members. It is better to get the community hall in turn in the name of the society to be used by all the members in future.

102. Flat area varies … actual to society Record

Ans: The construction of the building is done as per the Development control Rules as applicable. BMC grants the building construction as per the FSI allowed on such land based on its area. Therefore, the area to be considered is based on approved plan as per the original building constructed. If the same is not available as per the assessment tax collected by the BMC. If both are not available as per the society record/ agreement executed with the builder or as per their respective agreement.
The general body can deliberate on this and take an unanimous decision in the interest of all.

103. Redevelopment in phases..??

Ans: It depends on Developer’s planning .. if he decides to have more Buildings on the plot Society can discuss phased wise program but on small plot such phase wise program not feasible or economical. The same may be informed to the builder can if feasible, that may be worked out in due course.

104. Approved list of PMC

Ans : NO… there is none so far exist ven though it has been mentioned in Govt. order of 3rd Jan 2009 Society has to use its experience or take help of some consultant as PMC consist many duties and experts from many fields are needed. The professionals forming the part of the PMC must be registered with the respective professional bodies like CA with institute of Chartered Accountants, Architect with Council of Architure, Structural Engineer with BMC, Advocate with Bar Association and so on.

105. Plot area.. FSI 1 to 2.. How calculated..?

Ans: Area on Property card will be the base.

106. When allotment is to be decided… ? while executing agreement or procession?

Ans: Once the plans are prepared and approved by the BMC as per the area to be allotted to each persons, the architect and the builder will request the society to initiate the allotment process. Once the flats are allotted by the general body of the society with whatever method is adopted, the builder will execute the Agreement for Permanet Alternative Accommdation in the new building, the same will be stamped and registered and then the persons have to vacate the old flats and hand over the v acant possession to the builder for demolition and redevelopment.
107. Do the redevelopment committee has to make/sign any legal Bond.

Ans: There is no provision for making any Redevelopment Committee as per the latest Government Circular dated 3rd Jan, 2009 regarding the Redevelopment of the society building. Further, there is no provision in the MCS Act, 1960 or the MCS Rules, 1961 or in t he Bye-laws of the society. However, many societies do constitute Redevelopment committee who work under the guidance and the direction given by the Managing Committee or the General Body meeting. Since, Redevelopment committee is not responsible and accountable for any decision in the working of the society, they are also not make accountable and responsible under the MCS Act. It is only the Managing Committee who are responsible and accountable, therefore only Managing Committee members have to sign the bonds and there is no requirement of the Redevelopment committee members to sign the bonds.

108. What are the rights and liabilities of the redevelopment committee.

Ans. As can be fixed by the Society… it is not mandatory… changes from Society to Society..

109. What action can a society take, if during the general meetings, any member breaks the decorum , repeatedly.

Ans: The Chairman of the meeting has the supreme power. The chairman of the meeting can expel him from the meeting and also later on initiate proper legal action against such member as provided in the bye-laws for breach of bye-laws of the society and the decorum of the meeting. The member can also be expelled and later evicted from the flat by taking due process of law. No member of the society can man handle him or start using abuse language with such member. If a particular member is aggrieved of such member behaviour, the same should be reported to the chairman, who has to take the decision by recording the reasons and passing appropriate resolution in the meeting

110. Do the Redevelopment Committee has to make/sign any legal Bond ?

Ans: There is no provision for making any Redevelopment Committee as per the latest Government Circular dated 3rd Jan, 2009 regarding the Redevelopment of the society building. Further, there is no provision in the MCS Act, 1960 or the MCS Rules, 1961 or in t he Bye-laws of the society. However, many societies do constitute Redevelopment committee who work under the guidance and the direction given by the Managing Committee or the General Body meeting. Since, Redevelopment committee is not responsible and accountable for any decision in the working of the society, they are also not make accountable and responsible under the MCS Act. It is only the Managing Committee who are responsible and accountable, therefore only Managing Committee members have to sign the bonds and there is no requirement of the Redevelopment committee members to sign the bonds.

111. Is the parking of 20feet/40feet truck/lorry permissible in a residential co-op. hsg .society ?

Ans: The parking rules are made by the society in the General Body meeting of the society. The society in its General Body meeting may decided and make the rules as to which type of vehicles will be allowed to be parked in the society, where it will be parked, what will be the system of allotment of the parking, parking charges, who is entitle for parking, who can apply for parking etc. There is no guidelines given in MCS Act, 1960 or the MCS Rules, 1961 or any other law except the General body of the society and the Bye-laws of the society which regulates the parking.

It is not possible for me to give any legal answer to this question except the same to be decided in the General body of the society.

112. Is this true that General Body Meeting (GBM) should follow the guidelines prescribed in the Law or the GBM has the right to manipulate the Law ?

Ans: Bye –law No. 111 states as under: “ Subject to the provisions of the Act, the Rules and the Bye-laws of the society, the final Authority of the society shall vest in its general body meeting, summoned in such manner as is specified in these bye-laws” Thus General body is not above the law. No body is above the law. Within the general provisions of the law, the general body can take the decision in the interest of the society.

113. What are the rights and liabilities of the redevelopment committee ?

Ans: No where in any of the Act, Rules , Bye-laws and the government notification, the mention of the redevelopment committee is made. Therefore, if any society wants to constitute the Redevelopment committee, the rights, privileges, powers and the functioning including the election has to be prepared, approved in the General Body meeting and then the same should be constituted. Many societies constitute redevelopment committee without any proper guidelines and get into a major disputes. It is the managing Committee which is responsible and accountable as per the provisions of law.