Sunday, October 16, 2011

redevelopment related queries

Follow the government notification

Ours is a Society in Bandra (W) consisting of 48 members. The building was started in 1970 and completed in 1974. Due to the fact that we are opposite the sea there is tremendous damage leading to corrosion of the steel in the columns. Also, our building is a RCC structure, chunks have started falling down. More than 60% of the flats are experiencing leakage problems. We have been repairing the building but the leakages have not stopped. The MC got a very high quotation for comprehensive repairs but there is no guarantee the leakages will stop as mentioned by the structural consultant. Some members are of the opinion to look at the possibility of redevelopment / self development but say that we need to call a SGM to discuss anything with redevelopment or even to get a feasibility report. What would be the procedure to appoint a consultant to give us a comparative feasibility report on repairs and redevelopment/self development?

The government has given the notification under section 79A of the MCS Act, 1960 on 3.1.2009 for the societies, which are planning to go for redevelopment. However, in order to explore the possibilities of repair or redevelopment, if the society wants to appoint a consultant, the same can be done in the Annual General Body meeting or in the SGM. However, before you invite the offers from the developer or initiate any redevelopment proposal, it is compulsory that you follow the government directions given under section 79A of the MCS Act, 1960 related to redevelopment.

My parents are residents of Chembur for 35 years. They have been tenants in the same building for 35 years. Now the owner is considering redevelopment. As tenants what are they entitled for in the new building, can they claim any corpus fund, can they get car parking?

There is a difference between the cess building tenants rights in south Mumbai and tenants of the other land owner buildings. In case of the tenanted buildings in western or eastern suburbs, the tenants will be entitled to get the same area of the flats, which they are presently occupying with 5% plus or minus. In case the land owner wants, he can continue your tenancy. During the construction period, you will be entitled to get the rent for temporary alternative accommodation. You cannot claim corpus fund or ownership of the flats in the new redeveloped building or the car parking facilities. Even the land owner can revise the rent considering the present situation. There is not much scope for the tenants in the suburbs. Therefore, it is very important that the tenanted buildings should have their own tenants welfare association and then form a common forum to bring some policy changes for the tenanted buildings in suburbs.

Can an associate member become the chairman of the cooperative housing society who can become an associate member as per the rules? And does the associate member who is the chairman of the society have the right to start the redevelopment process or only original member can become chairman and members of the managing committee?

Associate member as per the model bye-laws means a person who holds the shares jointly with the first member. Thus, when the flats are purchased in joint names, the other owner can become the associate member by making an application and paying the entrance fees. However, in the model bye-laws it is provided that any person who wants to become the associate member along with the first member should make an application in form No. 7 duly consented by the first member and pay entrance fees of Rs.100. Once such applications are received, the committee or the general body may admit such applicant as the associate member. Once any person is admitted as the associate member, such associate member by taking a no objection letter in form No. 10A prescribed in the model bye-laws can contest the election. On getting elected as the committee member he can become the chairman and also initiate the redevelopment procedures as per the Govt Directions given under section 79A of the MCS Act, 1960.

Our Society is 50 years old and is situated exactly Opposite Byculla Station. As per the BMC records the land on which our building stands belongs to the BMC from which Mr. Gupta had taken it on lease in the year 1943. Further on he gave it to the builder to construct the building in the year 1960. On verifying with the Corporation under the R.T.I Act and as per their records till date the Agreement to lease has not been executed in favour of Mr. Gupta. However the Property Card appears in his name and others as per the collector's records. We would like to know if without his approval, can the society directly enter into an agreement with the corporation, prepare the Deed of Assignment and get the conveyance done in its favour? Secondly what is the procedure to be adopted to go in for the deemed conveyance and what legal advice should we seek to get this conveyance issue settled at the earliest?

Ans: As per your statement, the property card is in the name of Mr. Gupta. We have to find out from the City Survey Office, on what basis, his name is entered in the property Card. Without proper documents, normally, city survey office does not enter any person's name as the owner of the property. You will have to produce the relevant documents available with you to a consultant who can guide you to proceed in the matters of deemed conveyance. Normally to obtain the deemed conveyance, you need the complete details of the land, the name of the owner, agreement executed with each of the flat purchasers and then the building details. It is possible for your society to obtain the deemed conveyance.

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