• Redevelopment

I absence of Conveyance by the owners/developer of the land on which our buildings stand, is the Managing Committe right to call for several Special General Meetings of General Body to - 

a. appoint PMC and make first payment to such appointed PMC?
b. ask PMC to prepare Project Fesibility Report
c. appoint Builder
d. ask PMC to Prepare Tender document?
Asked 4 years ago in Property Law
Religion: Christian

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12 Answers

1. society is entitled to appoint PMC regardless of pending conveyance

2. all members are entitled to see and review the PFR upon payment of photocopy charges

3. no conveyance in favour of society is not a bar against taking steps for redevelopment of society property

4. the proposed builder can be obligated to obtain conveyance by filing necessary application to competent authority for grant of deemed conveyance and to pay for the incidental costs

Yusuf Rampurawala
Advocate, Mumbai
6882 Answers
79 Consultations

5.0 on 5.0

society can call for special general meeting to appoint PMC to prepare feasibility report etc

2) society can go in for deemed conveyance

Ajay Sethi
Advocate, Mumbai
87973 Answers
6207 Consultations

5.0 on 5.0

a. Yes the society can appoint a PMC and pay remuneration to PMC.

b. Yes the report can be made and the builder can be appointed.

c. Further there can be application of deemed conveyance with the competent authority in absence of conveyance.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

society pays for xerox costs

2) project feasibility report should be circulated to all members

Ajay Sethi
Advocate, Mumbai
87973 Answers
6207 Consultations

5.0 on 5.0

Yes the society can take consent of all the members and further the documents can be circulated to the members on the cost of members.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

1. The Managing Committee can of course call for the meeting of its members for discuyssing any matter pertaining to the interest of the members.

2. The decision taken by the said Committee after holding the meeting can be challenged before the Court if it is found to be illegal.

Krishna Kishore Ganguly
Advocate, Kolkata
26614 Answers
726 Consultations

5.0 on 5.0

1. It is a decision taken by the managing committee to send the said report to all the members which is well with in its jurisdiction.

2. The expenditure for making photocopies of the said report will be borne by the said Committe from the amount made available to them for the said purpose.

Krishna Kishore Ganguly
Advocate, Kolkata
26614 Answers
726 Consultations

5.0 on 5.0

Hello,

Yes the MC has the right to call special GM, for preparation of the feasibility report by appointing a PMC.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

The committee shall pay for the cost of the xerox, as the committee is sending the said report.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

Dear Sir,

Without the consent of owners, developer no such meetings can be conveyed which is illegal. The relevant procedure for redevelopment which may be useful is as follows:

Things you need to know about property redevelopment

With limited availability of open land parcels in Mumbai, major developers are now looking at venturing into the redevelopment space.

Dilapidated buildings on the verge of collapse are a grim reality for thousands of housing societies across Mumbai. Developers, as an incentive to owners of older buildings, offer additional area, money, and the promise of a new flat with a better amenities .

But owners should keep a few things in mind before opting for redevelopment.

What is redevelopment and why is it needed?

Housing redevelopment refers to the process of reconstruction of a residential premise by demolition of the existing structure and construction of a new one as per approvals from the Municipal Corporation of Greater Mumbai (MCGM). It ideally works best when a society is in dire need of extensive repairs but is starved of the necessary funds for it.

Developers, on their part, are also on the lookout for properties with unused development rights where they can build a new and higher structure where the additional storeys can be sold for a tidy profit.

As per the terms of the agreement between the developer and the society in question, existing members of the society receive new flats in the reconstructed building of an area equal to or more than the area of their existing flats. But redevelopment can only take place if 75 percent of the members tender their consent.

Over 20,000 housing societies, 17,000 cessed buildings and over 3,000 Mhada (Maharashtra Housing and Area Development Authority) structures are waiting for redevelopment proposals.

The advantages of redevelopment over repair

According to Redevelop Mumbai, a project management consultant that has handled over 45 redevelopment housing societies in Mumbai, the repair work of a building which is already 25 years old will only increase the life of the building by three to four years. "Structural repair is not economically feasible to take care of seepage, weak walls and foundations, leaking water pipes, etc," Dilip Shah, Senior Counselor and Analyst for Redevelopment of Housing Societies, told Firstpost

With redevelopment, the members get a new building, more space and monetary benefits without spending any money from their own pockets. Shah says the developer can offer extra amenities like a gymnasium, a generous car park, and high-end security systems, among other things.

Disadvantages

However, while redevelopment may be the latest buzz, citizens argue that developers often tear down old colonial mansions to build luxury towers for the rich. And more often than not, it is often haphazard and done without the consent of society members.

Any building that is over 25 years old can go for redevelopment once it is declared dilapidated by an architect. Under the provisions of Development Control Rules it has become easy for developers to get buildings declared dilapidated even when they are not really so. Given the strong politician-builder nexus in the city, it is not difficult to get a building declared dilapidated by a government architect.

The redevelopment process also causes inconvenience to the residents as they will have to look for alternative places to stay in while the builder demolishes the old building and constructs a new one. It usually takes the builder at least 18 to 24 months to complete a project with an extended grace period of six months in case of any adverse eventuality.

Follow the ground rules

1. Redevelopment is usually burdened with bitterness and complaints of high-handedness and corruption against the Managing Committee of the society, which is why society members should always appoint a lawyer before signing a contract with the builder."Builder should be transparent, reliable and trustworthy. The most recommended way to choose a builder is to go by the tendering system," said Shah.

The society should prepare a comparative chart and, after checking the merit, reputation, technical capability, experience, financial status, quality of construction and successful completion of projects, it should select the builder.

2. The contract should clearly mention the obligations of the builder and the society members and the penalty or consequences of any breach of the contract by either of the parties. Once the agreement is accepted in terms of area and corpus fund, it cannot be revised.

"If the carpet area, as documented in the agreement, is not given by the builder, the owner can claim appropriate compensation through a consumer court by filing a complaint against the builder under the counts of Breach of Trust, Cheating, Unfair Trade Practice and Deficiency in Service," Shah said.

3. The housing society should insist on a bank guarantee, which would take care of monetary compensation to ensure the project is not delayed or stopped midway. "The successful bidder has to give a bank guarantee equivalent to 20 percent of the total project cost," according to redevelopmumbai.com.

Netravathi Kalaskar
Advocate, Bengaluru
4952 Answers
27 Consultations

4.8 on 5.0

1. If that was the agreed condition, the PMC can receive.

All such things can be resolved by organisation as general meeting wherein a resolution can be passed to this effect.

T Kalaiselvan
Advocate, Vellore
78131 Answers
1543 Consultations

5.0 on 5.0

Is it correct to request the Society to send the Project Feasibility Report and the Tender Document to all members for review/comments? Who pays for the xerox costs

The interested members can request for such documents and can get the photocopies at their own costs, the society is obliged to supply them the copies.

T Kalaiselvan
Advocate, Vellore
78131 Answers
1543 Consultations

5.0 on 5.0

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