• Landlord is insisting to sign redevelopment MOU before giving NOC

We stay in cessed tenanted building, about 2 years back, our landlord sold building to Developer, We approached them about 1 years back for doing repairs since building is structurally weak and needs urgent repairs. Since 1 year has passed by they are not giving us the NOC for repairs and insisting to sign the MAHDA NOC for redevelopement and enter into MOU for redevelopment. Their view is since building is anyway going for redevelopment why spend on heavy repairs. All tenants have already spend good amount in appointing contractor and architect for doing the repairs and we are taking MHADA funds under reimbursement procedure to get the repairs done. The developers are saying they want to safeguard their interest and feel if they repairs are done then tenants will delay the redevelopment. Its well known fact that redevelopment is long and complex procedure and tenants dont have much confidence that developers have the capacity to undertake redevelopment. Tenants dont know much about the developers and where they have done projects, thus feel its risk to give MHADA NOC for redvelopment. We need legal advice. Is it safe to give MHADA NOC to developers, so they are convinced about our intentions. Can developers file eviction suit if we give NOC for re-development. Also what are options for doing the repairs if the Landlord is not co-operating by giving the NOC for repairs and not assisting tenants. If the tenants go ahead with repairs after obtaining consent from authorities, can they stop repairs work ? Please advice.
Asked 6 months ago in Property Law from Greater Mumbai, Maharashtra
Religion: Hindu
We need legal advice. Is it safe to give MHADA NOC to developers, so they are convinced about our intentions. Can developers file eviction suit if we give NOC for re-development. Also what are options for doing the repairs if the Landlord is not co-operating by giving the NOC for repairs and not assisting tenants. If the tenants go ahead with repairs after obtaining consent from authorities, can they stop repairs work ? Please advice.
 On the submission of the Report of the Sukhtankar Committee, the Govt. in the year 1999 amended the Development Control Regulation 33(7). The brief highlights of the amended Development Control Regulation 33(7) are as follows:

In case of redevelopment of 'A' category cessed buildings (constructed before 1940) undertaken by the landlord or Cooperative Housing societies of landlord or occupiers, the total FSI shall be 2.5 of the gross plot area, or the FSI required for rehabilitation of existing occupiers plus 50% incentive FSI, whichever is higher. Under the new policy the developer is assured of at least 50% FSI for free sale. Also the policy enables rehabilitation of all occupants on the same plot, reducing social dislocation.
Self contained flats of minimum 225 sq.ft. and maximum 753 sq.ft. carpet area are given to the old residential tenants/occupants. Shopkeepers are given an area equivalent to their old area.
In case of 'B' category cessed buildings permissible FSI shall be the FSI required for rehabilitation of existing occupiers plus 50% incentive FSI, and so.on.
Though some buildings may belong to 'C' category (may not belong to 'A' or B' categories), they may be so dilapidated and dangerous that their reconstruction is most urgently necessary to this end, the Government has granted additional incentive FSI as per Point No.1 above for redevelopment of buildings of any category declared as dangerous, prior to monsoon of 1997.
A large number of old properties can be better developed by clubbing them together instead of developing each property separately. This leads to lesser congestion and better infrastructure such as internal roads, open spaces, etc. 

The Maharashtra Housing and Area Development Authority (MHADA), in the past two months, cancelled the No-Objection Certificates (NOCs) of 18 redevelopment projects for undue delay in execution.

According to a report from Mumbai reported in a press column of a leading newpaper:
We found that the developers had not started any work, and in many cases, after getting NOCs they had not even visited the tenants of the buildings. Then, there were some cases where the redevelopment had not taken off due to differences between the NOC holder and the occupants of the buildings,” said a senior official from MHADA’s repair and reconstruction board.
Thus there are more chances for the developer to cheat you at a later stage and there are plenty of such incidences in the past.
Therefore without making proper enquiry about the builder/developer, you should not venture into NOC in a haste.

T Kalaiselvan
Advocate, Vellore
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1) under section 14 of mahrashtra rent act it is duty of landlord to carry out repairs . if landlord fails to do so you can issue 15 days notice to landlord to carry out the repairs 

2)in case landlord declines to do so tenant can carry out repairs 

3) dont issue NOC to developer for redevelopment 

4) landlord cannot stop the repair work as he has failed to carry out repairs inspite of notice to do so 
Ajay Sethi
Advocate, Mumbai
23151 Answers
1216 Consultations
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1) you can take search in sub regsitrar office and obtain copy of sale deed executed by old landlord  in favour of purchaser ie new landlord 

2) if structural repairs are to be carried out you would need BMC permission . 

3) you can move court and seek orders to permit tenants  to carry out repairs .make BMC and landlord party to the suit 

4) decision whether to give MHADA  NOC to builder has to be collective decision taken by tenants 
Ajay Sethi
Advocate, Mumbai
23151 Answers
1216 Consultations
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The new landlord or old landlord shall be decided on the basis of PR card only as far as the BMC is concerned.
You say that the developer has become the new landlord, do you have prof for that. 
The developer may be new landlord for practical purposes but he might not have registered the property in his name just to avoid paying stamp duties.  
Instead he might have entered into a contract with the landlord on his company's name and the arrangement shall be that the landlord shall ratify the sale done by the developer on the strength of power of attorney deed executed in his favor by the landlord.
Now you have to concentrate on your problem alone and not on the landlord's problem.
You issue legal  notice through your lawyer to the original landlord demanding your requirements, let him give a reply stating that he is not the landlord and inform you that whom he sold and who the present landlord is after which you can approach the new landlord with the same demand. 
 Let the new landlord refuse to comply with the demand made by you, after which you can approach the BMC or any other competent authority with your grievance for relief and remedy.
Finally if you dont get a satisfactory reply or your grievances are not addressed by anyone, you may approach court with a mandatory suit seeking relief and restrainment against the person who has aggrieved you.
T Kalaiselvan
Advocate, Vellore
13948 Answers
127 Consultations
5.0 on 5.0

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