In 1989 Society had RCC garage meant for society office. Society officially sold garage in SGM (with the permission of Registrar) in order to raise funds for repairs. NOC received from society for using it commercially. BMC approval taken. The garage is attached with flat & included in share cert of flat. Stamp duty is paid for the said deed and duly registered. Now the society says Garage is a Garage and not entitled to any kind of compensation while redevelopment. They say even if the society has sold it in SGM with resolution signed by members at that time, it is not binding now and wont allow any benefits to garages if they do not accept the builder offer as it is (which is less than half of actual market value). They will go ahead with the redevelopment as there is approval by 70% members. (there are 24 members of which 2 are garage owners and 1 more member if of the same family) 5-6 years back the redevelopers had offered to add the area of the garage in the new flat alongwith benefits. The latest builder that has come with the offer has offered to give 50% area with benefits which is far less than offered by others earlier as well as as compared to market value of the garage. Some members are against giving anything to garage owners (even when it is owned by a member - flat owner) stating garage has zero value as per law now as well as some court rulings. While redevelopment of soc what is position for compensation or adding area in flat with benefits as per current laws. Another important point is that till now the offers were received and analysed through society appointed PMC. For this offer they have by passed the PMC, as they need redevelopment to be processed urgently since building condition is deteriorating as it is more than 40 years old. (Even Builder do not want any PMC)
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1) refuse to accept builder offer
2) builder can in lieu of garage allot addition area in flat to garage owners who are members of society
3) 50 per cent area of garage offered by builder is too low
4) compensation to be offered by builder depends upon your negotiating skills
Thank you for quick reply Can society refuse to abide by the SGM resolution passed at the time of selling the garage and say garage is not commercial. What is the course of action available if society decides to go ahead with the redevelopment proposal since there is nod of 70% members. Not taking along garage owners and members who are also garage owners. Where can we meet you personally if needed for further discussion. Do you have any direct number.
1. under law, a garage is not an independent unit or a flat.
2. it is an attachment to an existing flat
3. so the member owning a flat with a garage attached cannot demand extra carpet area on the basis that he is also entitled to the garage alongwith the flat
4. however a garage is a set of premises which is covered on 4 sides ie has a roof and 3 walls. Obviously for constructing the roof and 3 walls, FSI must have been used. So the contention of some members that a garage has no value is not correct
5. as you cannot demand extra carpet area for the new flat on the basis that you also own the garage, what you can certainly demand is a monetary compensation for the garage
6. also keep in mind that if the members who are holding garages as well demand extra carpet area for the new flats, then the builder will have to specifically plan for such few flats in the building plans. this results in planning constraints for the builder and may not be practically viable. a builder would proceed on the basis that to compensate the members in lieu of their old existing flats he will have to construct new flats having carpet area comprising of old carpet area of old flats plus agreed extra carpet area. so he would uniformly build such new flats for all the members. if he is asked to build few flats having extra carpet area due to demand by certain members for extra area in new flats on basis of them holding the garages, then it will be very difficult for the builder to plan that out architecturally
7. yes off course a society may not have all the flats having same carpet area. for instance a society may have 3 types of flats of different carpet areas say 1RK, 1BHK and 2BHK. The builder would accordingly plan the new building in such a way that he would be able to compensate the society members by allotting new flats of 3 different carpet areas corresponding to the existing flats' carpet area. Now if within these 3 categories, if one more category is added due to say few 2BHK flats also having garages attached to them, then, this would result in planning anomaly for the builder.
8. So you must demand compensation in lieu of your garage whether in the form of extra corpus or separate consideration against the garage.
9. Even if the society proceeds for the redevelopment without addressing the garage issue, you can always challenge the same in court. you can submit that you are not against the redevelopment and are not at all obstructing the same but you must be compensated against the garage and the builder ought to pay you for the same.
10. if society has appointed a PMC, and it bypasses the PMC, then you can challenge such decisions. Why was PMC appointed in the first place when society was not to consult it for any redevelopment issue? This is the question you need to ask to the society
SGM resolution is binding upon society
2) you can seek phone consultation through the website
The developer constructs the garage for parking vehicles and sells these to members. Members could convert the garage for commercial use without taking proper permission or following the due process of law. Therefore, when the co-operative housing society decides to go for redevelopment, garage owners who use these for commercial purposes often demand a commercial unit for the garage area. However, if there is a garage available in the approved plan, the member can demand the garage area and the developer will either provide parking in the stilt, podium or basement or offer additional area to be included in the new flat or offer a consideration to the member. However, the member will not get any-commercial unit in the redevelopment. If the garage is not available in the approved plan then the member will not get any benefits of the garage and it will be up to the developer whether to provide the garage area or not.
There is no cap laid down under any law on the additional area which may be demanded by the owner or given by the builder in the event of redevelopment.
Try to negotiate with the builder , the area which you can get depend on the negotiation with him.There is no specific rule to follow , so put forward your demand and bargain on that.
Can society refuse to abide by the SGM resolution passed at the time of selling the garage and say garage is not commercial.
The managing committee with the help of redevelopment committee has to appoint a Project Management Consultant (PMC), who will guide the development committee in appointing a proper and efficient developer, who will be financially stable and has goodwill in the market. Therefore, many such societies that are going in for redevelopment, appoint a redevelopment committee by passing the resolution at a special General Body Meeting.
The decision taken in the SGM shall ordinarily be binding on all.
What is the course of action available if society decides to go ahead with the redevelopment proposal since there is nod of 70% members. Not taking along garage owners and members who are also garage owners.
when the co-operative housing society decides to go for redevelopment, garage owners who use these for commercial purposes often demand a commercial unit for the garage area. However, if there is a garage available in the approved plan, the member can demand the garage area and the developer will either provide parking in the stilt, podium or basement or offer additional area to be included in the new flat or offer a consideration to the member. However, the member will not get any-commercial unit in the redevelopment. If the garage is not available in the approved plan then the member will not get any benefits of the garage and it will be up to the developer whether to provide the garage area or not.