Garage Redevelopement in Co-op Hsg Soc
Sir / Madam,
1) I stay in Co-op Hsg Soc building in pune city (within municipal limits) which has 12 flats and 1 (detached/covered/ closed) private garage of approx. 200 sq ft built up area nearby in its premises. All the 12 flat owners are members of society.
2) Garage is owned by one of the flat owners, who is member of society as ‘flat owner’ and not nominal /full fledge member of society as 'garage owner'. The garage is kept locked and not used for vehicle parking / residential/ commercial purpose etc. The garage doesn't have separate power meter. There is temporary electrical wiring from flat owner's meter to his garage. There MAY not be any separate corporation property tax account for garage NOR a separate INDEX II for garage. Society does charge any maintenance for garage.
3) That flat owner cum garage owner's father owned the vacant plot on which the building and garage stand today. 30 years before, the then Developer gave his father three flats and one garage in lieu of vacant plot. It is mentioned in the agreement between them saying that garage and three flats are offered as consideration of land and as value transfer of development rights to then developer. Later, after death of his father, he sold two flats and retained another flat and garage with him.
4) We have a registered tri- party sale deed done by then developer with society and having consent of this flat owner cum garage owner's father . This sale deed is for complete plot on which flat and building stands today and is in favour of our society.
5) Now we are thinking of redevelopment of society building. In spite of repeated requests to be clear on garage compensation, the garage owner had not explicitly told the society what he wanted in lieu of garage. He just used to say that it’s his personal issue and he will settle it with selected developer. He kept his cards closed for almost last four years when we were discussing the redevelopment proposals. Society decided that garage compensation issue will be resolved mutually between garage owner and the selected developer, without any intervention or liability of society in the matter.
6) Selected developer for redevelopment has asked the flat owner cum garage owner to accept financial compensation in lieu garage. But he doesn't want financial compensation and wants compensation in terms of area. He wants the developer to add area equivalent of garage area in his redeveloped flat, in addition to free area offered by developer to him as a flat owner. Otherwise he is demanding a separate unit in lieu of garage in redeveloped building apart from his redeveloped flat. He wants this unit to be exactly of existing garage area + proportionate free area offer given to flat owners. He is not willing to pay for extra area, if this unit exceeds existing garage area + proportionate free area offer.
7) The selected Developer is not ready for above two demands of compensation at same location. He says it’s not possible because of architectural / designing issues in proposed layout. Maybe accepting this demand of garage owner is affecting his overall saleable area calculation to non society member / new customers.
8) The selected developer has one scheme currently under construction outside pune city (outside municipal limits). Selected developer is ready to give garage owner a complete 2 BHK flat with 800 sq ft salebale area with open parking in lieu of garage there. This scheme will be completed till June 2016. Our redeveloped building will be ready in 2 years from date of signing of agreement with developer. Selected developer asked the garage owner to pay amount of nominal amount (almost 2 lakhs) and stamp duty + registration fees (almost 1.5 lakhs) for flat in that scheme. Garage owner showed his willingness in this offer initially.
9) When stage of signing memorandum of understanding / development agreement with society was reached, garage owner all of a sudden rejected this offer saying that developer should not demand any amount from him and stamp duty + registration fees should also be paid by developer. He wants the flat completely free of cost and free of taxes from the developer in lieu of garage. He says that as there is difference of market rates at both locations. He claims orally that value of his garage is higher than price of that flat. He has nothing on paper about valuation of garage. He also highlights the fact that his existing garage (in our building premises) in is municipal limits and the flat being offered is outside municipal limits. Selected developer is not willing to accept his logic and says the flat price outside pune city already exceeds garage value as its area is almost four times bigger than the existing garage area. Selected developer says that he is offering a well planned decent flat in lieu of 30 year old garage structure (where the attached toilet is also accessible from outside the garage). Selected developer also says that the flat will be handed over to garage owner in near future, if development agreement is signed with society. So, in selected developer’s opinion, even before the building redevelopment starts, it will be a big financial advantage to garage owner.
10) The garage owner is reluctant to agree our requests to accept the selected developer’s offer . On the contrary he has asked the society to find some other developer for redevelopment. We have already invested last four years on deliberating the redevelopment issue and after evalution of all the proposals, reached this stage. There was an option of contributing the amount asked by developer to garage owner by other 11 members and resolve the issue. Many society members are against this type of resolution as the garage owner is financially well to do person. Unless garage owner gets what he is demanding, he will not sign the memorandum of understanding / development agreement in capacity of flat owner. The fact is any developer cannot build new building keeping the garage ‘as is where is’ because it proves to be obstruction to proposed layout plan. So even if all other 11 members are ready for redevelopment, the memorandum of understanding /development agreement cannot be signed with developer because of non cooperative stand of 'garage owner cum flat owner'. In short, for his own benefits, garage owner is stopping the complete process and affecting the future of other 11 members.
11.1) What are the standard / market norms for garage compensation if society decides to redevelop its building?
11.2) Is there any clear-cut mention in redevelopment guidelines about eligibility of compensation in lieu of garage or extent of compensation in lieu of garage in redevelopment guidelines issued by CO-operative department of Maharashtra?
11.3) Is it necessary for society to give nominal / full fledge membership to garage owner before redevelopment , so as to accommodate garage owner’s small unit in proposed building?
11.4) Can the garage owner claim small unit in proposed building without having ‘ change of user’ process for converting the garage identity from ‘ vehicle parking use to residential / commercial use?’
11.5) Under MOFA or any other act, is it legal and compulsory to accommodate the separate unit in lieu of garage/ add equivalent area of garage to garage owners proposed flat in proposed building?
11.6) Is there any legal mechanism under MOFA or any other act to overcome this roadblock made by garage owner by applying 75% majority rule, when garage owner not member of society?
11.7) should the garage owner do valuation of garage from a recognised ‘ govt. approved valuer’?
What should be the legal course of action for society, developer to make garage owner cum flat owner understand the importance of ‘co-operation’ in co-operative housing society? Kindly advice what stand should be taken by society.