Thursday, 17 May 2007

Redevelopment of properties in Mumbai

During our last general body meeting, our secretary proposed that we renovate our building because it was in a very bad shape. All our pipes needed replacement, the walls of the building were cracking up, there was lack of cleanliness and security and our building was in dire need of major repairs. The society did not have enough funds and there was no guarantee that there would be no more repairs for next five years after these major repairs.

Instead of repairs, somebody suggested redevelopment.

The subject of redevelopment has now assumed great significance because in Mumbai, majority of the buildings owned by co-operative societies are quite old and in a neglected state.

In case of redevelopment of old buildings, builders approach societies that either have some open plot of land or are willing to demolish the old structures to reconstruct new buildings.

Where such a development is possible, builders normally agree to pay some consideration to the society for its permission to construct a building on the open plot of land or to construct a new, bigger building using the Transferable Development Right (TDR), Floor space index (FSI) after demolishing the existing structure, and by providing alternate residential flats to members till the new building is constructed.

If we have to proceed with the process of redevelopment, it is important to take the advice of a lawyer who's well versed with the provisions of the Bombay Stamp Act 1958, the Maharashtra Co-operative Societies Act 1963 and the Income Tax Act 1961. In any process of redevelopment, we must be aware of documentations that are required and also we must understand the tax implications on redevelopment of immovable property.

One of the contracts, that there should be is 'development agreement' (which is merely authorizing developer to develop the land). While doing so we have to ensure that appropriate stamp duty is paid and that registration is done.
The builder approaches us, and we are the owners of the land and, instead of buying the land and paying a large amount towards the purchase; he enters into an agreement with us for permission to develop the land on our behalf for us.

In other words, in a case of development, the builder constructs the buildings at his cost, retains some flats for himself to be sold in the open market, and should also give a few flats to us plus pays us some monetary consideration. The developer will carry out this development work in the capacity of a constituted attorney that we, as owners, will appoint and not on his own behalf.

Later, these flats will be sold by the developer in the open market and from such sale, he makes a profit. He saves on stamp duty cost because the rate of stamp duty in respect of development agreement is much less than that payable on outright purchase. Later, when the building will actually be conveyed to a co-operative society or a company, we, as owners and builder become party to the conveyance deed on which the stamp duty is payable and the same is also registered.

It is important for a society to have a valid conveyance deed of land and building in its favor for it to be redeveloped and that includes acquiring marketable title, permission for reconstruction and construction of additional floors by use of TDR and FSI, or else, society may not get any approval of plan from Municipal Corporation.

But due to our ignorance, majority of builders fail to convey the title to a co-operative society after having constructed flats on a plot of land.
In fact, the greater majority of the co-operative housing societies, formed in Mumbai in the last twenty years, do not have the land conveyed in their favor. The outcome of this failure to grant conveyance deed is that the builder or the earlier owner still remains the owner of the property. This results in a situation where these societies have only possessor rights and not the ownership over the land, depriving them of the additional TDR FSI that is the main driving force for entering into such agreements.

Let us now understand the procedure and documentation required at the time of redevelopment of an immovable property. Before we agree to re-development plan, the following steps are required to be taken:-

The consent of the society members must be obtained during society meetings. On or before the execution of the agreement, the society should hand over to the developers, the copy of the conveyance deed in respect of the society’s property, along with certified copies of the property register card, index II, latest electricity bill, water bill, municipal tax bill, N.A. tax bill in respect of the society’s property and also, the copy of the registration certificate of society under the Maharashtra Cooperative Societies Act, 1960.

There should be a list of members with their choice of new flats and parking, area entitlement among others as agreed upon in the new building should be prepared.
A temporary alternate accommodation should be provided to the members during the construction period and should also be made clear in the agreement.

There will be complications which the society might face in case of redevelopment if following things were not considered.

They fail to assemble all members of the society at a single point of time during the meetings. (In my society, we have some stubborn members who just refuse to attend the meetings and then blow their top if any decisions that are taken are not in their favor.)

Sometimes the title may not be clear, i.e. conveyance deed of the land and structure is not executed in favor of the society.

There is anxiety in the minds of the members about possible delay in completion of the project after they have vacated their old flats.

The old documents of the members can not be traceable

There are some tax issues regarding redevelopment, which are not clear to the society.

Some members don’t wish to come back to the new building and ask for very high prices for sale of old flats or are more interested in purchasing a new flats at a discounted rate in new building.

Corpus amount has taken a long time to be fixed by the society.

As per old municipal laws, it was possible that the owner of building permitted TDR FSI to be loaded over the existing structure by way of additional floors for a consideration. This, however, is no longer permissible under the existing municipal laws.

We can, however, make some arrangements under which, a project involving the use of TDR FSI can be developed jointly.

We can allow our existing building to be demolished and the existing FSI can be developed for our use. The builder uses additional TDR FSI - the cost of which is to be borne by the developer alone and he constructs the new building.

When drafting a Development Agreement, some of the important points and clauses of a development agreement are:

The cooperative society, the developers and preferably all the members should be parties to this agreement.

There should be a brief history of how the conveyance deed was given to the society.
The registration number of the cooperative society under the Maharashtra Co-operative Societies Act, 1960, should be mentioned in the agreement.
There should be particulars of the existing flats with carpet area of the flats occupied by each of the member of the buildings.

The area of the plot as per the 'property register card' should be mentioned.
The total estimated FSI area that can be constructed by utilizing TDR on the plot should be mentioned.

The agreement should mention the carpet area, including the additional area, which will be made available to the members in the new building.

The schedule of payment of the total consideration should be specified in the development agreement.

There should be a mention of the tentative date for vacating the flats in the old building by the members, which shall be linked with the plans being approved by the concerned authority.

The number of open car parking space, stilt car parking and closed parking which will be given to the members in the new building should be mentioned in the development agreement.

Usually the developers obtain at their own costs the rights under the Development Right Certificate (DRC) in accordance with the provisions of the Development Control Regulations for Greater Bombay, 1991. Further, the developers get the building plans approved, obtain the commencement certificate and sanction of building plans from the MCGM and pay all the requisite deposits, fees and premiums to various authorities including the MCGM. It should be clarified in the development agreement that neither the Society nor the Members shall be expected to pay such types of expenses.

It must be clarified in the development agreement that each purchaser of a flat in the new building who intends to be a member of the society will be required to pay to the society the entrance fee and share allotment money as well as a sum as approved by the society towards the sinking fund of the society.

The time period for completion of the new building on the plot owned by the society shall be defined in the development agreement. In the event the developers fail to complete the entire work within the stipulated period, a penalty clause can be mentioned in the agreement.

It should be specified in the development agreement that from the date of taking complete vacant possession of the existing structure till the date of receipt of occupation certificate in respect of the new building and till such time that the builder intimates the members to take possession of their respective flats, the developers shall bear and pay all municipal rates, taxes and other payments required to be paid to the concerned authorities.

The agreement should also clarify that the society shall pay only the municipal rates, and other outgoing taxes till the vacant possession of the entire property is done (the plot and the existing structure) to the developers after receipt of full occupation certificate in respect of the new building.

The development agreement should list out the broad specifications and amenities to be provided for the flats in the new building on the plot owned by the society.
The development agreement should have a proper schedule of the property at the end of the agreement which should specify the location of the property along with the name of the suburb, final plot number, CTS number, area of the plot and municipal ward number.

Abovementioned are some of the important points relating to redevelopment of old buildings by cooperative societies. Since the laws on the subject of redevelopment are yet to be fully developed, any decision in this matter should be taken with great care or else it could lead to a possible dispute or litigation.

It is very important to understand the procedure properly before signing any papers. The building in my lane has a stay order due to some conflicts and misunderstanding between the society members and it stands in pitiful state since last five years. Till a proper agreement is not reached, the building can neither be redeveloped nor repaired and the members are forced to stay in these uncertain and unhealthy conditions for many, many years.

48 comments:

Abhijeet said...

thank you very much for sharing this important information about building redevelopment, i need to ask you as your mentioned that if society doesnt have the proper paper then how we can do the redevelopment. then how we can proceed.

please help me boss.

bye,

jeetu
jeet_10@hotmail.com

pushpa said...

In most cases, the developer negotiates the deal of restoring an old building with the managing committee of the society. "In which case, the onus is on the managing committee to ensure that the interests of the residents are protected and they need to take all the precautions," offers Pradhan.

"It's advisable to discuss the agreement in detail at the general body meeting so as to arrive at a consensus, about the terms and conditions, in order to avoid later hassles," he maintains. As with any property dealing, when it comes to a redevelopment contract, it's of utmost importance to ensure that the developer has a sound reputation. "If possible, the members of the managing committee must visit the site of some of his previous projects, so that they get a first-hand information about the developer," says the CHS secretary.

Considering that the property of so many residents is at stake, it makes sense to seek the help of professionals in getting a clear picture about the dealing that the society is entering into. "Sound advice from professionals such as lawyers, architects, engineers, before signing on the dotted line is sure to help the society make a responsible decision," offers High Court advocate, Prem Sood, as he goes on to add that it is reasonable to hire the services of a technical supervisor who can keep a check on the work done by the developer.

In order to ensure the smooth implementation of such a contract, the respective obligations of the developer and the CHS members and the consequences of the breach, if any, need to be put down in writing clearly in the agreement. "For instance, the time of completion of the project and the consequences of non-completion in the stipulated time must be specified in the contract so that the developer doesn't drag on the work," says Sood.

Source: http://www.mumbaimirror.com/index.aspx?page=article&sectid=83&contentid=20080922200809221557228094120f4ea&sectxslt=section&pageno=1

Anonymous said...

hey can anyone guide me please??
i live in a old building which needs to go for redevelopment, however the original land is on lease and there is a lease aggreement between landlord and society for a period of 99years. so is conveyance deed required??

john said...

Do the members of the building going for redevelopment have any right to stilt parking space in the new building or does it belong only to the builder who can sell it only to the new members who come in.Any law or section supporting this.

pushpa said...

Members do have right to stlt parking space and it should be mentioned in the development agreement...always read the agreement carefully before confirming a deal......

Anonymous said...

Dear Pushpa,

After reading the other posts we are inclined to get your opinion.

Our society has entered into a Development Agreement with the builders through our Managing committee. There are three wings in our society (A,B & C). There are 5 shops in the A wing.
Our(shop owners + 2 flat owners) Tri-party agreement is still pending due the following reasons :-
1. We have not been provided the approved plans from BMC for our property (there is also some dispute regarding the area). The plan the builder has approved from building proposal shows our shop's as stilt area.

2. We are not sure whether the agreement being given to us has any legal value without the approved plans.

3. The Development agreement (registered with BMC) has not been signed by all the society members.

Please let us know the proper procedure for going into an agreement with the builders.

Shanker Patel

pushpa said...

First thing first. Is this a commercial area or a residential area? Are the shops legal?

If they are legal then they cannot be redeveloped as stilt area without the approval of the owners and the society. The agreement has to be made separately with the owners, defining the extra space and the commercial value (which is higher than residential) that will be offered to the owners. The builder cannot show the area as stilt area. Do not sign on any dotted line till you get BMC’s approval.

The development plan should b signed by all the society members.

The proper procedure for approval of the plan has already been discussed in my earlier post.

Anonymous said...

Dear Pushpa
Can you tell me how to decide developer's offer is best possible as per prevailing market.
Is there any source who can evaluate his offer for additionl area,corpus etc., he is offering

Bharati

pushpa said...

The extra perks that you get from builder varies, it depends on the popularity of the builder and his accomplishments. What you can do is to compare notes with other people and decide what is best for you.

Anonymous said...

A wing has about 12 residential flats + 5 shops on the ground floor and we are in occupation since 1984.

1 more question please, can the water connection of the society be disconnected even if the shop owners and 2 flat members are in occupation of their premises?

Anonymous said...

How the advice from professionals such as architects, engineers,will help the society before signing papers and for the period of construction?

Anonymous said...

Thank you ver much for sharing information regarding redevelopment, Our society wants to go for a self redevelopment, That is all society meembers will fund the project & a new structure with extra sq.ft area will be equally distributed...... can you please help us about the procudure...

regards

pushpa said...

Before taking the project of self-redeveloping of your building on your own, you should be aware that you must have enough funds to start this project, which may involve borrowing money from bank, and they will need securities before it can finance you, also there should be a reliable contractor who is ready to take the responsibility of providing good material for building a strong structure, and you need to have a unity and trust within your society members.

Normally, every building has at least one black sheep, who will create hurdles even if it is for a good cause.

Go ahead with your eyes wide open.

ps: to ur earlier quest...You cannot cut off electricity and water connection of any member if they are occupying the premises. It is illegal.

Nilesh said...

Dear Pushpa,

Our building is planning to for redevelopment. However, the conveyance of the building is not done. This is a 31 yrs. old building and the builder is not traceble. In this case how can we get the conveyance done? Alternatively, is there any other way we can go ahead? The electricity and water bills of the society are still on the builder's name. Please advice.

Many thanks & best regards,

Nilesh

pushpee said...

Nilesh

Here are the solution problems for conveyance deed @

http://www.accommodationtimes.com/legal/society/solutions-to-conveyance-problems/

Building conveyance requests are often required when buying and selling a house. You can make a request here…http://www.actpla.act.gov.au/topics/property_purchases/sales/building_conveyancing

Anonymous said...

Dear Pushpa
can u guide me on following, AGM & related issues
- is it valid AGM that is conducted after 14 nov.i.e extra permissible time after 14 august and what are necessary steps as per bye laws for it
- can any member be eligible for election for new managing cometee who is not present in AGM (but proposed by members)

bharati

Anonymous said...

Dear pushpa,

ur articles are very informative. kindly clarify - old bldg 1970 const. consisting of 23 member - 17 flat owner, 4 shops and 2 room measuring total 8791 carpet area. Area of plot is 944.3 sq.mts. What will be FSI? if FSI is shared bet members equally what will be the carper area for each member.

thank u

pushpee said...

@Bharati…A copy of bye-laws is available to every society and it should be kept in the office for members to know about the laws…I suggest you read the copy to know the new bye-laws, you might find the details there….

@Anon…Thanks for the visit…normally the ratio of FSI varies from 1.62 to 2 per room because it also depends upon the builder and also the location of your building…every member may not get the equal share. .commercial areas and shop owners might ask more…

Anonymous said...

500 carpet area new flat in 7 storied building in Borivali is costing around 50 lakh. if construction cost is Rs.1000/ to 1200 p.s.f. mening cost is not more than 7 lakh what for we Rs.42 Lakh? so what is land cost for 500 carpet area flat? + profit = Rs.42 Lakh.If on our land we can reconstruct a building with say 7 Lakh loan where is the need for high building and bringing another 20/50 members who r super rich & existing members r lower or lower middle class.As we constructed the original building with loan then with Rs.50000/- can we not do the same thing with 5 to 7 lakh today?
By doing this we can have open space garden parking etc & same social fabric can be retained

All these towering infarnos business is for benifit of Politicians/developers & builders wher D& B are agents for P

your comments please

pushpee said...

annoymous: it is the matter of choice that the owner of the land makes, nobody can force them to sell their land to the builder and bring in 20/50 new more members.. If the builder is selling the flat of 500 psf at 50 lakhs, then he will be offering a lumpsome amount to the owner too which can be in crores.....a builder is there to make money (ofcourse) but he does give a handsome amount to the land owner too......actually everybody benefits from redevelopment...:)

Anonymous said...

Dear Pushpa,
I need yr valuable advise / consent on this ....Our is a very old rented building ( abt 40 yrs) consisting of 20 tenants...about six years back all the tenants were forced to leave the building as it was detorating and the health of the building constructions was getting bad to worse day on day...The Tenants had often approach the landlord to redevelop...but he refused ..reason best know to him...seeing the dipilated building lying untouched the BMC approached the landlord to redevelop the same. The landlord readily accepted and started demolishing the structure without any Tenants consent...Is it legal ...Can he do this w/o Tenants consent or Notice...Can the Tenants stop this demolition...If yes What is the procedure...pls help ASAP...

Rdgs

Anonymous said...

Pushpa,

In continuation to the above, Can we prevent the landlord from redevelopment or construction of a new building...can we as Tenants exercise our rights and put claim for our flats in the new construction...pls help/advise

pushpee said...

As a tenant,your rights are generally greatly reduced. They generally depend upon what you have agreed with your landlord.
visit the site @ http://www.thesite.org/homelawandmoney/home/tenancyrights/yourrightsasatenant
to know abt ur rights.
:)

Anonymous said...

Hi Pushpa, Thanks for your all those valuable advices.... thank you.

Pusha can you please clarify on Existing FSI availibale in Suburb Mumbai & we heard that extra fsi WILL BE GIVEN TO green Building.... can you pleasse

Anonymous said...

We are into process of redevelopment of our building and what are the steps that needs are to be followed for making smooth process for redevelopment with full consideration of secutiry of our flats. is there any book available on redevelopment? please advise

ADIT KOTAK said...

i want to know the exact and real meaning of corpus fund,
is it a compensation towards the increase in maintainance costs of the flats due to construction of a new building in lieu of the old one...??
is it paid on the old carpet area or the new carpet area...??
i feel,as, since it is a compensation towards an increase in maintainance costs due to increase in carpet area of the new building, therefore it is to be calculated on the new carpet area and not on the old one..??
pls. correct me if my interpretation is wrong...
thank u

pushpee said...

Corpus fund is also known as maintenance fund.

The term “Corpus” literally means main part or organ of body. It is also known as capital of organization. Normally corpus fund or maintenance fund denotes a permanent fund kept for the basic expenditure needed for survival of organization. Corpus fund is generally not allowed to be utilized for the attainment of the purpose but interest or dividend on such fund can be utilized.
Normally a corpus fund denotes a permanent fund kept for the basic expenditures needed for the administration and survival of the organization. These Funds can be placed in Bonds and Equity that are gilt edge and for the interest to be used for the different projects where we have a funding need


Yes, it is is it a compensation towards the increase in maintainance costs of the flats due to construction of a new building in lieu of the old one

It is paid on the old carpet area

pushpee said...

@Anonymous
all your queries have already been discussed in my earlier posts, kindly go through them and do share your knowledge with us if you have anything new.
thank you...
:)
P

ADIT KOTAK said...

since a corpus fund is a compensation towards the increase in maintainance costs of the flats due to construction of a new building in lieu of the old one,
then why is it paid on the old carpet area and not on the old one...??

twentysixtyseven said...

I live in khar west near the station. In our building we have 12 flats; it’s a two storey building. The society wants to redevelop the building by themselves by demolishing the old flats. They have asked each member to pay 10 lakhs and after completion each member will get double the area of their flat. What precaution should I take regarding the same and what should I get after paying 10 lakhs?

V S said...

It is a very bold initiative taken by members of your society to redevelop on your own. Upto the early 70's, members used to get together to form a society ,buy a piece of land and construct tenements for themselves. The next 2 decades have seen builders grow in strength at the cost of people.
In self development ,you are able to get the max. for the land members own collectively which is very valuable in a city like Mumbai and that is why at a low cost of 10 lakhs you get an additional area equal to our flat.
If you wish to succeed, have a good reliable architect, a good reliable contractor ,a good indpendant supervisory agency who monitors progress ,draft your agreements properly,monitor cashflows and keep tab on each stage of process of redevelopment, and you will be an envious owner of a new flat of double area .
If you need help , we give professional help exclusively in self development of properties
lakshmanan
vsolveproblems@gmail.com
9820980018

rely said...

Hi , I seek your opinion on this:
I along with 65 members signed and agreement with the builder and society for redevelopment of the society.This was about six months back.8 members have not yet signed.They are not agreeing to the terms and conditions.Builder has paid corpus fund to all 65 members who signed this agreement.Now the managing committee without consent of other members has floated a letter providing these 7 members lucrative option.Out of which one member has agreed and collected corpus fund and signed the agreement.Now they have again floated other lucrative letter to remaining 7 members to accept this.
This is a hush hush deal and not informed to other members ,most of them had already shifted and moved.Now I am not agreeable to this I was very convincingly told that society will not dole out anything to them and committee will move court to evict them.To me this is a breach of contract and felt cheated by committee members.I am ready to return corpus fund and asked clarification from committee for which they have not replied.
Can I cancel the agreement and refund the money to society?This agreement has not yet been registered at stamp duty/registrar office.Anyways, my understanding is that the society cant have different agreement for different members.Its a residential society.
Brigadier Salve

pushpee said...

@Twentysixseven…Before u go for this kind of deal and investing 10 lakhs for redevelopment, u should be aware of all the procedures and the paper work involved so that u are not misguided into losing that money that u had…I am not scaring you, but every member should have a proper knowledge if they have to want to do the whole thing on their own…..

@Rely : No you cannot cancel the agreement and refund the money to society once you have signed the dotted line…
Please read the earlier post and comments where these problems have already been discussed.

@V.S.I would appreciate if you could share your knowledge with us and guide us if our information is not correct.
Thank you

rely said...

Thanks for your response.
While going through all these came to know about different agreements being signed with different members.I will reproduce below a court ruling.

" Minority members of co-operative housing society cannot obstruct a redevelopment project:Jun 28, 2010."

"The Bombay high court has once again ruled that members of a co-operative housing society who are in minority cannot obstruct a redevelopment project and must abide by the majority decision of the society, unless they show that here is some prejudice caused to them or a fraud has been committed."

Yes prejudice has been caused here to all 65 members.MC is not a separate independent entity, they have to work within frame work (AGM)and as per rules laid down.THEY HAVE ACTED UNILATERALLY without taking consent from other members.Copy of AGM (abstracts) attached to my agreement says that all 72 members will be given 410 square feet.

It is prejudice,discriminatory, breach of confidence and a fraud committed by MC.
Thats why I was seeking a legal opinion.

pushpee said...

Knowing our legal situation in India, be aware of what you will go through, for eg: one building in my neighborhood is under stay order since last eight years....and members are emotionally hickacked, neither they can sell, nor they can make any changes...hope u understand the situation....b4 you take any drastic decisions..try to make some compromise with the builder instead...(sorry, this is the way things work here)

BTW when you signed the agreement, did it have an 'Exit clause?'

rely said...

No there is no exit clause.

There is a one sided clause ie favoring society and builder.

It says that member will not go court against the society/ builder after signing this contract.Actually it carries no meaning.

Agreement is actually a Pandora's box .If you open skeletons will come out.One of the clauses says that building is in dilapidated condition and declared structurally unfit.Actually it is not.Structurally it is fit.No checking was done by structural engineer and there is no certificate as such from str engg.

I had asked from MC they have not replied so far.

I have heard but NOT confirmed that 5 MC members are getting 30 percent extra area.This is mentioned in their agreement which they have NOT kept in the society for records.

Rest all agreements are there except these 6 committee members.

One cant close eyes and overlook.

No member has handed over keys to society/builder but barring 8 rest all have shifted.

It is still with them BUT they are not aware about it becoz of their education background and little knowledge about redevelopment.

And all those who are knowledgeable had NOT signed agreement and asking for bigger pie and rest who are in MC signed after getting their pie.
"Bandar baant is going on".As if it is their personal fiefdom.

I trusted MC as a gentlemen and because of my background.

Thats why legal option sought.You cant let crooks make mockery of the whole system.

Parth joshi said...

Hi,
My society has entered a redevelopment.
Do you know whether the plan of new building is attached to the commencement certificate?
Regard,
Parth

giri said...

Hellow
One of resident of old building which badly need in reconstruction; will please guide me how to go about it.

Ravindra said...

We are a very BIG society of lots of members, and tenants, and tenant shop keepers, looking for re-developing the society property.

All the commercial and residential tenants are occupying the said premises from almost the establishment of our society in 70's, All our Buildings, where members stay are self developed. Tenants stay in chawls in the same premises, where are buildings are placed. Now our building needs immidate re-developement as we are almost 50 years now...

We are in the process to call for tenders, etc as per GR 2009.

Everything is fine till this point, but i have to ask you certain doubts, i hope u will be able to answer them.

1. The residential tenants, to become the society members, and to get ownership flats in the new buildings, what is the procedure. I want to know is there any minimum area they should get, or will they get only what they occupy currently, secondly, will they have to pay to society any amount for getting the ownership flat. If yes how much. Or is it that the society have to provide them a minimum of 300 sqft free of cost, and enrol them as our legal members.


2. Same as point 1, for the shop keepers, are the rules same for the shop keepers, since they will get commercial shops which are very high in rates.


Suggest a win win proposal in such scenario, so that we can negotiate with all tenants, and get the re-development done smootly.....

As per the Bombay rent Act, old and new act, do the tenants have any right to become a member of the society after redevelopment, or will they remain as tenant if they dont wish to pay for getting membership at the time of redevelpopment.

As per the act, is there any such act that says that after development a society will be binded to give the tenants a ownership flat, please specify exact sections, clauses for above two things.

Please reply back asap, as we have the agreements to be done soon, and we are on the verge of finalisation. your inputs can save any disputes to arise, and by having technical details, we can avoid such disputes.

radhika said...

i would like to purchase a commecial premise from an owner in a newly redeveloped building. however the builder has not yet handed over the possession of the building to the society. wat are the things that need to be checked before the purchase?

Anonymous said...

I live in old Cess building built around 65 years ago ,my building is under DP plan ,does builder get any extra fsi for DP plan building ,cluster development ,is there any way to find out if landlord has sold our building to some builder, and what FSI can be obtained so we can get reasonable offer ,as per rule how much area should we get ? ,how can i find out CTS nos ? ,somebody told me you can find out at building proposal office of BMC at Dadar
Thanks

pushpee said...

Under DCR 33(9), Cluster development is possible for mix of structures with minimum plot area of 4,000 sq mt. Applicable FSI is 4 (or) required FSI plus incentive FSI of 50-75%, depending on size of the plot.

To find out about the details on CTS nos, please visit http://mumbaisuburban.gov.in/html/land_records.htm

Anonymous said...

Hi Pushpa,
Ours is a tenanted bldg, declared dilapidated by BMC.Tenants in court and court directed landlords to re-construct the bldg and tenants were instructed to live-out at their own expense.Now, the landlords are going to re-develop the property and looking to apply"Standard Rent" which would say increase our rent from Rs. 500/- to almost Rs. 25000/-Will any court allow this, do we have an option.Thanks

Anonymous said...

Hi Pushpee,

Ours is the small(1200 sq floor area - 3 floors) old building built before 1940's in south Bombay - leasehold. Now the developer has bought the building and become landlord. they purchased 60% tenants properties. now only 3 tenants are left. we are one of them. They are asking us to leave but offering very low price in which it is impossible to get similar house in south mumbai or even central mumbai. where as if they redevelop we are eligible to get more space. Please advice how do we deal with this situation? What can we get?
Please reply at the earliest.

pushpee said...

Were I in your place, I would take their offer to take the house with more space after re-development. Do read the agreement carefully and find an alternate accomodation. The building is old and re-development is the wise option.

ud-bombay said...

Pusphaaji ...ours is a 25 years plus old bldg, the secy wants repairs to be done for which he is asking Rs.1,00,000 from each for overall repairs, we hve 32 members..hve checked with someother builders, they say the rate is too high, might be the committee members want to eat into the money, we suggested for redevelopment for which he says its not possible as the land is leased from BMC, also the society was formed by BMC who were from SC/ST/OBC community..

but there are lot of non-bmc people have bought the flat. some not fully transfered inspite of paying transfer to the society.
Pls suggest a way the non-bmc people can become member and also what are the changes for redevelopment.thanks uday

vishwagyan said...

Dear Pushpa,

It was not only very informative but also a pleasant surprise to read your blog, particularly the succinct replies / suggestions you have given promptly.

I have certain queries - we have co-parcenary tenant’s society where the founder members purchased the land from the government in 1964 or so. The construction work was completed in 1970. The cost of the land was equally shared by all the members, but the cost of construction and common amenities, like roads was paid on the basis of plinth area.

There are 3 different types of flats with different carpet areas - 540 / 740 / 1080 sq. feet.

Now we are going for redevelopment of our society. The contention of some members is that the corpus amount should be equally distributed among all members and not on the basis of carpet area. What should be the legally correct distribution of the corpus amount? I would reiterate that we are co-parcener tenants.

Also, can IT be saved by using a different terminology for corpus or a part of it is received towards nuisance / disturbance allowance. Since we have additional open land where the Developer can first construct the new buildings and completion of all buildings required to accommodate the existing members then the old buildings can be demolished.

I would really appreciate a detailed reply to my queries.

Thanks and regards,

positiveyou

Rahul said...

Hi Pushpa,

Compliments for your very informative blog...

I would request if you can provide your guidance on redevelopment of privately owned cessed building category "A" (pre 1940). Our owner has sold the development rights to the builder. There are total 25 flats in our building out of which 4 are commercial, 4 flats owned by owner and rest 17 are tenants. Currently we are negotiating the agreement clauses with the developer but would need clarity on the below points :
1) The additional area which developer agrees to give which needs to be mentioned in agreement should be in carpet or built up
2) Can tenant get parking space in the new building (is there any GR for reference)
3) What charges should the tenants pay for the new flat?
4) How much time should be given to developer to register a society and conveyance deed?
5) Can the developer construct additional floors incase of any amendment in the FSI rules during the construction or after completion of the new building?

Your kind revert will be appreciated.

Thanks and regards
Rahul
Mumbai

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