• Redevelopment of a housing society

Our 30 years old society is located at Malad (w) Mumbai 400064 consisting of 61 members 48 flat and 13 shops. Recently our society received a redevelopment proposal from a developer without inviting tenders. Resolution was passed in Annual General Body Meeting held on 18th September 2016 by majority vote to accept the proposal. Society has neither valid conveyance nor they have appointed Project Management Consultant which is mandatory as per directives issued U/S 79 (A) MCS Act 1960 dated 3rd January 2009. 

Majority of members have given their written consent but it is not drafted as it should be, it is just one line i.e. I give my consent for redevelopment- Yes/No therefore it is no more valid. 

As per directives u/s 79 A MCS Act 1960 consent letter should be well drafted and irrevocable.  

In SGM held on 19th February 2017 society has given letter of intent to the developer which is totally false, unilateral and developer friendly in fact it is a letter of appointment. 

As per directives u/s 79 A MCS Act 1960 there is no provision to give letter of intent or letter of appointment to the developer. 

Now the developer has asked for copies of chain of agreements and share certificate of all members to proceeding further i. e. Power of attorney and development agreement etc. 

Unless society becomes legal owner of the land / property how can they give POA or sign development agreement with the developer?        

In fact managing committee is misleading members and showing rozy pictures.I have escalated this issue and brought illegalities which will certainly land all of us in trouble to the notice of all society members but unfortunately most of the members want everything for free and do not bother about illegalities of the matter. Some members are illiterate and ignorant about law. Most of the members privately acknowledge that the secretary and other managing committee members are not trustworthy. There is simmering discontent among the members but they could not gather courage to express their views openly and prefer to sit as a spectator in society meetings rather than challenging autocratic and illegal way of functioning of the managing committee.

I have reported this matter to Hon’ble Deputy Registrar P ward Mumbai but could not get satisfactory outcome as redevelopment is not within their jurisdiction.  They advised me to approach Honourable Court.  

My questions are:

1) What are the immediate options available to restrict / stop illegalities and manipulation in redevelopment process before it is too late?

2) In case the society give Power of attorney to the developer and the society and the developer entered in to development agreement and if we do not know in which sub registrar office these documents are registered how or from where can we obtain a certified copy of these documents under RTI? 

3) Shall I wait to initiate legal proceedings till society and the developer sign the development agreement? 

4) In case I file Civil / Criminal law suit against managing committee and the developer what shall I pray? 

5) Can we use General Body Meeting’s minutes as evidence in court of law?
Asked 7 years ago in Property Law
Religion: Muslim

First answer received in 10 minutes.

Lawyers are available now to answer your questions.

4 Answers

1) you should apply for stay of revelopment proceess . seek an injunction restraining society from proceeding with redevelopment without following procedure laid down under MCS act

2) development agreements are generally not regsitered . you should issue notice to society and seek inspection of development agreement

3) wait for action to be taken on your complaint by dy registrar P north ward

4) you can use general body meeting as evidence in court of law

Ajay Sethi
Advocate, Mumbai
95215 Answers
7611 Consultations

5.0 on 5.0

1) take search with sub registrar office in goregoan (w) as to whether any such development agreement has been regsitered

2) society is bound to issue notice to all members for attending SGM and forward minutes of meeting to all members

Ajay Sethi
Advocate, Mumbai
95215 Answers
7611 Consultations

5.0 on 5.0

1) What are the immediate options available to restrict / stop illegalities and manipulation in redevelopment process before it is too late?

If you are a member of this society, you may gather like minded embers to agitate this program which is not with the consent of all the members and also it is not within the legal framework.

You may protest and object to the proposal of the society to proceed with the redevelopment program and record the same in writing.

After this you can initiate legal process by filing an injunction suit agaisnt the society and the builder restraining them from proceeding with the redevelopment of the house properties.

In case the society give Power of attorney to the developer and the society and the developer entered in to development agreement and if we do not know in which sub registrar office these documents are registered how or from where can we obtain a certified copy of these documents under RTI?

You have to make a search in the registrar office which is within the territorial jurisdiction of the society. No application under RTI act will be entertained by private parties.

3) Shall I wait to initiate legal proceedings till society and the developer sign the development agreement?

Yes that will be right time to initiate legal process for obtaining stay against their intended redevelopment

4) In case I file Civil / Criminal law suit against managing committee and the developer what shall I pray?

You can contact a local advocate who will be able to guide you properly about what to do and not.

5) Can we use General Body Meeting’s minutes as evidence in court of law?

Yes, this also can be an evidence.

T Kalaiselvan
Advocate, Vellore
85416 Answers
2239 Consultations

5.0 on 5.0

As per directives u/s 79(A) MCS Act 1960 it is mandatory to pay stamp duty and registered the development agreement under registration act 1908.

Any document to be registered has to be paid with the applicable stamp duty

Society will not co-operate me. They do not send meeting notice and minutes to me deliberately.

If you when the meeting takes place you can very well go and attend, you have rights to participate in the meeting.

T Kalaiselvan
Advocate, Vellore
85416 Answers
2239 Consultations

5.0 on 5.0

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer