REDEVELOPMENT

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 REASONS FOR REDEVELOPMENT
AGE & CONDITION OF BUILDING

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 DETERIORATION OF TERRACE &
WATER TANKS

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 BUILDING STRUCTURE
DILAPIDATED
 REPAIRS COULD BE
THE OPTION SOME
TIMES NOT ALWAYS

 BUT THE FAVOURITE

CHOICE REMAINS

 REDEVELOPMENT

 REDEVELOPMENT
&
 REDEVELOPMENT
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 REDEVELOPMENT

JOINT VENTURE SELF

DEVELOPMENT REDEVELOPMENT

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 MEANING OF REDEVELOPMENT
“REDEVELOPMENT” means Replacing it with a
demolition of the Old NEW STRUCTURE with new
Structure. dimensions and space.

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 Builders taking away people’s money without providing them
their said properties and other amenities .

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 When building /society goes for
redevelopment ,people’s expectation of
get big and better Home

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 REDEVELOPMENT GUIDELINES
• Revised Redevelopment Direction dated 4th July, 2019
issued u/s 79A of the MCS Act, 1960

• Old Directive Guidelines dated 3rd January, 2009 under

Section 79(A) of Maharashtra Co-operative Societies Act
1960 to all the Co-operative Housing Societies in the State
of Maharashtra

• Guidelines for SELF REdevelopment to give impetus

to the Self Re-Development of the registered co-
operative housing societies in the State dated 13th
Sept, 2019

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 ADVANTAGES OF REDEVELOPMENT
TO THE SOCIETIES / MEMBERS:
(a) Solution to extensive repairs for lack for
funds
(b) Additional area
(c) Members get option to choose to
purchase extra space.
(d) Corpus Fund
(e) Lifts in New Building structures
(f) Parking facilities
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 ADVANTAGES OF REDEVELOPMENT
TO THE SOCIETIES / MEMBERS:
(g) Modern amenities and electronic
gadgets
(h) Better building structures
(i) Modern amenities in the Redeveloped
Buildings/ Complex like
(j) Self Redevelopment Opportunity

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 ADVANTAGES OF REDEVELOPMENT
TO THE DEVELOPERS :

(a) Development opportunities in City

(b) Lower amount of initial investment
(c) Clear title
(d) Negligible cost of infrastructure
(e) Less Hassel to transfer the management
to the society

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 DISADVANTAGES/ RISKS OF
REDEVELOPMENT
TO THE SOCIETIES / MEMBERS:
(a) Risks of lacuna in development agreement
(b) Inconvenience during construction period
(c) Cultural issues between Old & New members
(d) Increase in Maintenance Cost
(e) Risk of non-receipt/procurement of OC by the
developer
(f) Water shortage

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 DISADVANTAGES/ RISKS OF
REDEVELOPMENT
TO THE SOCIETIES / MEMBERS:
(g) Extra cost for parking space
(h) Additional area purchased is at current
market value,
(i) Delay in delivery of project
(j) Risk of Non-payment of rent
(k) Diversion of funds by the Developer
(l) Serious irregularities in the process of
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Redevelopment
 DISADVANTAGES/ RISKS OF
REDEVELOPMENT
TO THE DEVELOPERS:
(a) All the members of the Society have to be
satisfied with all the plans proposed by the Builder
/ Developer even though their most of the
dealings are with the Managing Committee of
the Society.
(b) In case of any dissatisfaction arising between the
Members of the Society during the execution of
the Redevelopment project, it results into division
of Members and various opposite views make the
task even more difficult.

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 DISADVANTAGES/ RISKS OF
REDEVELOPMENT
TO THE DEVELOPERS:
(c) In the event, the redevelopment project is
delayed due to factors which are not in
the hands of the developer,
like approval delays, then it increases cost
of the project like payment of rent for
delayed period, increase in cost of
materials. With the advent of RERA, more
litigations.

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 TYPES OF REDEVELOPMENT
A. THE EXECUTION OF THE REDEVELOPMENT
PROJECT CAN BE BROADLY DIVIDED INTO
TWO TYPES:

1. Self development which is done by the

owner or the society themselves

2. Redevelopment through the developer

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 TYPES OF REDEVELOPMENT
1. Self development which is done by the
owner or the society themselves

a. Self Redevelopment with 100%

responsibility by the society:

b. Self Redevelopment under PACKAGE DEAL

c. BARTER OPTION (lock and key/ construction

contract agreement)

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 TYPES OF REDEVELOPMENT
2. Redevelopment through the developer
The redevelopment agreement with the
developer can be broadly categorized into
following three types :
a. AREA SHARING

b. REVENUE SHARING

c. COMBINATION OF BOTH

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 TYPES OF REDEVELOPMENT
B. BASED ON THE LANDHOLDING / TITLE OF THE
LAND AND THE OCCUPATION
1. The title of the land is freehold
2. Land is owned by MHADA/ Housing Board
3. Collector Land
4. BMC/CIDCO owned land
5. Private Leasehold lands
6. Private Tenant ( Pagri System)
7. Cess Buildings in Mumbai City
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 TYPES OF REDEVELOPMENT
C. REDEVELOPMENT BASED ON THE INCENTIVE
PROVISIONS FOF UTILIZING FSI & TDR

Based on Road width and other criteria as per

DCPR FSI and TDR can be worked out.

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 SELF REDEVELOPMENT AND
ITS ADVANTAGES & RISKS
1 MEANING OF SELF-REDEVELOPMENT
A prime question that arise right at the very
thought of redevelopment is whether the
society can itself undertake the activity. The
answer is affirmative, if the society is dominated
by members who can devote their time and
energy to oversee the redevelopment work.
Of course it is easier if the society has at least
one Civil Engineer or some members who
understand something about construction and
managing
30/4/2021 people.
ADVANTAGES & RISKS OF SELF-REDEVELOPMENT

In the case of Self Redevelopment, society itself

takes up to play the role of the Developer by
appointing the best Architect/Project
Management Consultants, who take the
responsibility of arranging the required finance
and the best contractors, it could yield the best
returns in the interest of all the Society
members.

The guidance in this respect also can be

availed from the expert.
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ADVANTAGES & RISKS OF SELF-REDEVELOPMENT

Documentation and paper work generation

without much hassle.
a. Employment of Professionals of the best
cadre.
b. Achieving quality construction and
amenities.
c. Easy possibility of procuring Conveyance,
OC & Approved Plan.
d. Own choice of Architecture and Design
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ADVANTAGES & RISKS OF SELF-REDEVELOPMENT

In case of self-redevelopment the society has

to appoint a Construction Company or a
Contractor for redevelopment. For this purpose
an agreement has to be executed. Such
agreement is known as the ‘CONSTRUCTION
Agreement’.

Bye-law no. 77 which specifically states that

structural audit of the building is to be
conducted by the Architects from the panel of
the Municipal Corporation.
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2 PRE-REQUISITE FOR
SELF-REDEVELOPMENT
1. To be eligible for self-redevelopment, the society
should have conveyance in its name.

2. The members should be able to contribute certain

amount initially to get the plan approved for
redevelopment.

3. The management committee should take the full

responsibility to implement the project. 100%
members should agree for self redevelopment,
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 SELF REDEVELOPMENT AND
ITS ADVANTAGES & RISKS
3 CAPITAL REQUIREMENTS
1. The society need to contribute at least Rs.50
Lakhs to Rs. 2 crore depending on the size of
the plot of the society
2. Members involved to get the initial IOD
(Intimation of Disapproval) from the
planning Authority.
3. Normally banks can lend 85% of the cost of
the project and balance need to be raised
from the members by selling the extra area
to the existing members.
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CAPITAL REQUIREMENTS
4. The society also can explore to raise the
loan from the Non Banking Finance
Company (NBFC) or investors initially to pay
15% contribution of the cost of the project.

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 SELF REDEVELOPMENT AND
ITS ADVANTAGES & RISKS
4 PROJECT MANAGEMENT CONSULTANT

1. Since majority of the members are not having the

required knowledge and expertise in the various
provisions of the redevelopment, it is advisable to
appoint professionals to educate and implement
the redevelopment of the society. These
professionals are known as “Project Management
Consultants. (PMC)”
2. The Project Management Consultant prepares the
feasibility report and guides the members for
various aspects.
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4 APPOINTMENT OF
PROJECT MANAGEMENT CONSULTANT
of the society regarding the viability of the project.
The consultant also guides whether the society
should appoint a developer or proceed with the
self redevelopment.
3. PMC helps in preparing the tender and also publish
the tender, makes a comparative chart and then
facilitate the society in appointing the builder /
developer on the basis of bidding process.

4. In case the society decides to proceed with Self

redevelopment, a “Project Management
Consultant” (PMC) is appointed.

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4 APPOINTMENT OF
PROJECT MANAGEMENT CONSULTANT
who undertakes the total activity. In self-
redevelopment, the society undertakes the entire
activity by appointing Architect, advocate,
Chartered Accountant, Engineer, Finance
consultanactivities related to redevelopment.

5. The primary advantage is since there is no builder,

the society can retain the additional FSI and use it
for common amenities like- clubhouse, swimming
pool, society office, security cabin, guest house,
garden, etc.

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 SELF REDEVELOPMENT AND
ITS ADVANTAGES & RISKS
5 REDEVELOPMENT BY THE SOCIETY
1. Managing Committee to decide and get done
structural survey of building, as per bye law no. 77
and takes note of the repairs to be undertaken or
the building has to be redeveloped.
2. Managing Committee to decide and ask Project
Manager to survey the project plot / area / F.S.I. –
T.D.R. / B.M.C. – MHADA rules applicable / technical
and financial details including viability, comparison
of repairs vis-à-vis reconstruction.

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5 REDEVELOPMENT BY THE SOCIETY

3. Circulate the structural survey report &

feasibility reports to all member of society
and ask for written opinion.
4. To say YES or NO for new Constructions.
Call General Body Meeting.
(a) To decide to go ahead for Repairs /
Constructions.
(b) To start the paper work & procedure.
(c) To nominate few members as construction
Committee look into day to day business
/ affairs of development proceeding.
(d) To Appoint Architect / Structural Engineer
30/4/2021 / Solicitor.
5 REDEVELOPMENT BY THE SOCIETY

5. To go ahead for clearance all legal / property

matters. To get all necessary guidelines from
concerned department / Association / BMC /
MHADA, etc.

6. To ask all members & make details of requirements /

choices / demands of society members.

7. Project Manager to prepare guideline for maximum

benefit of society members (R.C.C. guidelines /
structural guidelines / internal- external amenities /
legal terms requirements / detail).

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5 REDEVELOPMENT BY THE SOCIETY

8. To invite different offers from contractors through

newspaper notice, according to guidelines.

9. To evaluate society standing on legal matters /

property matters, clearance / members matter
clearance / vis-à-vis contractor’s offers.

10. To evaluate & prepare comparison statement /

chart of contractor’s market position / compilation
of projects / Financial standing / management
standing / Convenience to members / Financial
management / offer, amenities & details.

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5 REDEVELOPMENT BY THE SOCIETY

11.To select 5 best offers for A.G.M. approval.

12.General body decides & selects any one
contractor
13.Consent letter of member to the society.
14.Society to issue letter of intent to contractor.
15.Detailed agreement between contractor &
society under Project Manager’s guidelines.
16.Project Manager to prepare and submit all
plans to BMC / MHADA / Other Authority
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5 REDEVELOPMENT BY THE SOCIETY

17. After Society approval, plan / proposal

moves to BMC for I.O.D.
18. Individual detailed agreement between
society & members / payment of
consideration.
19. Bank guarantee equal to project /
construction cost from contractor to
society as security.
20. Shifting of members to vacate the plot, if
required.
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5 REDEVELOPMENT BY THE SOCIETY

21. C.C. up to plinth.

22. Demolition of existing building.
Sub committee: - Management of construction.
i) Plan / drawing.
ii) Structural / Technical requirements.
iii) Member’s convenience.
iv) Shifting of members.
v) Demolition of Building.

23. Foundation work.

24. R.C.C. construction.
25. Civil and internal work.
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5 REDEVELOPMENT BY THE SOCIETY

26. Construction Completion Water & electric

connection / finishing of flats.
27. Occupation Certificate.
28. Members to shift to new flats.
29. To complete Construction in all respect
completion certificate.
30. Management of consideration amount / Corpus
Fund towards maintenance charges payable by
society.
25. A.G.M. to approve clearance to contractor.

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 SELF REDEVELOPMENT AND
ITS ADVANTAGES & RISKS
6) SELF-REDEVELOPMENT – MERITS & DEMERITS

a) ADVANTAGES OF SELF REDEVELOPMENT.

1. Corpus Fund could be achieved which

would take care of their share (original
members) of the maintenance cost of the
premises. Otherwise this amount could be
utilized for other purposes as per the
decision of each individual member.
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 a) ADVANTAGES OF SELF REDEVELOPMENT.

2. Apart from the additional 100 to 200 sq feet that on

would get as compensation from the developer. If
any of the family requires additional
accommodation in the same building, it can be
achieved by purchasing additional flat at a
discounted price.

3. The trend of building huge complexes and high rise

apartments or ‘towers’ as they are called have lifts
installed which not only carry the people from
bottom to the top, but in some cases there are lifts
that transport the vehicle owned by the rich and
famous to their houses situated on the upper floors.

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a) ADVANTAGES OF SELF REDEVELOPMENT.

4. Finally self-redevelopment yields the best

returns in the interest of all the society
members like-
a) Documentation and paper work could
be generated without much hassle.
b) Professionals of the best cadre could be
employed.
c) A through quality control could be
achieved.
d) Procuring Conveyance, OC &
Approved Plan would be more easily
possible.
e) Your choice of architecture and design.
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a) ADVANTAGES OF SELF REDEVELOPMENT.

There could be many more advantages

and benefits that one can derive from self-
redevelopment like-

• Bigger room sizes;

• Larger toilets;
• Attached bathroom in bedrooms;
• Concealed plumbing and electrical lines;
• Better planned and designed flats;
• Proper decorative entrance lobby;
• Proper playing ground for children;
• Availability of elevators / modern elevators;
• Earthquake-resistant structure.
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b) DISADVANTAGES/ RISKS OF SELF
REDEVELOPMENT.

• The Development Agreement that forms the

basis of a “Redevelopment Project” is
required to be drafted by a professional
keeping in mind the safety and security of all
the members. Any lacuna in the preparation
of this deed would result in a great loss for
the members who are eligible to many perks
in consideration of giving the permission for
this project.
• For a considerable period of time you are
required to hunt for accommodation which
disrupt your age old routine
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 b) DISADVANTAGES/ RISKS OF SELF
REDEVELOPMENT.

• Residential Complexes if converted into

Commercial Complex are seldom preferred
for housing purposes and family dwelling.
• Additional new members would take a
longer time to gel with the original members,
resulting in disputes on various issues.
• Additional members will require extra
consumption of water creating scarcity or
shortage of available water supply.
• Additional vehicles need extra space.
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 b) DISADVANTAGES/ RISKS OF SELF
REDEVELOPMENT.

• New constructions loaded with all kinds of modern

amenities, which in turn increase the cost of
maintenance to be paid to the society.
• The tax burden is high and in case the Occupation
Certificate (OC) is not procured, then the BMC
Charges and Water Charges are very high.
• Increase in property tax.
• Additional area purchased is at current market
value, which attracts Stamp duty and Registration
charges.

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 In respect of the concession to
be given in view of to give
impetus to the Self Re-
Development of the registered
co-operative housing societies
in the State

GOVERNMENT OF MAHARASHTRA
HOUSING DEPARTMENT
GOVERNMENT RESOLUTION NO. MISC. 2019/Case
No. 10/Du Va Pu-1
Mantralaya, Mumbai – 400 032.
Date : 13th September, 2019.
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 READ:–

Government Resolution, Housing Department No.

: Misc. 2019/ Case No.10/Du Va Pu–1 Date – 08th
March, 2019.

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 INTRODUCTION
A Developer is appointed by the concerned Co-
operative Housing Societies according to the present
prevalent procedure for making re-development of the
old and dilapidated buildings in the State. The re-
development of the of the Co-operative Housing
Societies is made according to the provisions in the
Development Control Rules prepared by the
concerned Planning Authority/ Municipal
Corporation/Local Self Government. Since the benefit
of the increasing F.S.I. is prominently gets to the
Developer, the members of the concerned Co-
operative Housing Society cannot get much benefit.
Similarly, since the

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 INTRODUCTION
participation of the members of the Housing Societies in
the process of re-development is very less, the entire
project is implemented on the pleasure of the
Developer and consequently, it came to the notice
that many projects are lying in incomplete state.
Likewise, since the purchasers who have invested by
taking loan for the sale flat in the said project, are
facing financial difficulties since not getting possession
of the flat within prescribed period. In such situation, if
members of the concerned co-operative housing
societies by coming together made self re-
development, then entire control on the re-
development project shall

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 INTRODUCTION
be of the concerned co-operative society. Similarly,
the benefit of the increased F.S.I. can be get to the
members of the said co-operative society. Incidental
to that, in view of to give incentive for making self re-
development of all registered co-operative housing
societies on government/semi government/private land
in the state, the decision to give concessions has been
taken in the meeting of the state cabinet held on
dated 08/03/2019.

Incidental to the decisions taken in the said meeting,

high power committee under the

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 INTRODUCTION
Chairmanship of the Additional Chief Secretary
(Housing) was formed by the Government Resolution
dt. 08/03/2019 of the department for making
recommendations to the Government regarding in
which proportion and nature of the concession to be
given to the registered co-operative housing societies
for giving them incentive for making self re-
development of their buildings. The report of the said
committee is received to the Government and the
Government has accepted the report of the
committee. Incidental to the recommendations in this
report,

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 INTRODUCTION
the matter to give concessions to all registered
co-operative housing societies on the
government /semi government/private land in
the state for making self re-development of
their buildings was under consideration of the
government.

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 GOVERNMENT RESOLUTION
In view of to give incentive to all registered co-
operative housing societies on the
government/ semi government/private land in
the State for making self re-development of
their buildings, the high power committee in this
regard has made following recommendations-

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 1. ELIGIBILITY FOR MAKING SELF RE-
DEVELOPMENT

Those buildings in the co-operative housing

societies in the State which are 30 years or more
old that buildings are eligible for the self re-
development.

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 2. ONE WINDOW SCHEME
Various types of permissions are required from
government/semi government scheme for the
self-redevelopment of the co-operative
housing societies in the State. For getting all
these permissions, follow up is made separately
to the various departments, thereby more time
consumed for the said process. If the said
permissions are get in the prescribed period
and in one office, then, the process of the re-
development become fast and the
concerned scheme is completed earlier.
Therefore for getting various permissions for the
self re-development of the co-operative
housing societies in the State at one place,
one window scheme should be started.
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 3. TIME LIMIT FOR GIVING SANCTION TO
THE SCHEME
It should be made binding to complete all
permissions through the one window scheme
within 6 months from the date of receiving the
proposal of the self re-development scheme of
the co-operative housing societies.

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4. FLOOR SPACE INDEX/INCENTIVE SPACE

Those Co-operative Housing Societies having

more than 30 years old in the State, who will
adopt the self re-development, to such
societies, 10% more floor space than the floor
space index/incentive space due for the
redevelopment according to the concerned
Local Development Control Rules should be
made admissible. Similarly, if the Rehab Area
for the residents in those buildings is more than
the admissible F.S.I then in such situation, 10%
more F.S.I should be made admissible than the
Rehab Area. Similarly, in respect of the
30/4/2021
4. FLOOR SPACE INDEX/INCENTIVE SPACE

buildings on the road having less than 9.00

meter width, these buildings should be given 0.4
FSI without premium instead of the present due
0.2 FSI (with premium).

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 5. IN RESPECT OF THE ROADS NECESSARY
FOR THE RE-DEVELOPMENT
Those co-operative societies who are wishing to
do collective self re-development, for them by
relaxing the condition of having two roads, the
permission for re-development of the buildings
on the 9.00 meter wide road in the populous
area and the buildings on road of 12.00 meter
wide in the less populous area should be given.
Similarly, the concerned co-operative should be
made available the necessary land required for
becoming 9.00 meter wide road and
accordingly the concession should be given in
that proportion in the Front Margin of the
building.
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 6. TRANSFERABLE DEVELOPMENT RIGHTS
(TDR)
Those Co-operative housing societies in the
state who will adopt the Self Re-development, if
such societies wants to buy the TDR, the society
should take TDR at the concessional rate of 50%
of the Ready Reckoner Rate from the
concerned Planning Authority.

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 7. CONCESSION IN THE PREMIUM RATE

While making re-development, various types of

the premium are being charged from the
concerned Planning Authority. The total
expenses are increased due to the said
premium rate in case of redevelopment.
Therefore to encourage the self re-development
of the registered Housing Societies in the State it
is necessary to give concessions in the rate of
the said premium. Incidental to that
concessions should be given in the rate of
various premium charged by the Planning
Authority.
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8. IN RESPECT OF TO DECIDE THE STAGES FOR
MAKING PAYMENT OF THE PREMIUM
It is inevitable to make payment of the various premium
while sanctioning the plans by the concerned Planning
Authority in the Re-development process. If the amount
of the said premium is paid lump sum then its pressure
falls on the project cost simultaneously. Thereby it may
cause paucity of fund with the concerned Housing
Society. Therefore to overcome on it, the concerned
Planning Authority should stipulated stages for the
payment of that amount by not taking lump sum
amount of various types of taxes/premiums from the
concerned necessary for the self re-development.

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9 . REGARDING VARIOUS TAXES/CHARGES TO
THE REGISTERED HOUSING SOCIETIES
ADOPTING SELF RE-DEVELOPMENT –
A) Land under Construction Assessment Tax
(LUC Tax) -
If the registered housing societies going to re-
development have completed self re-
development in the prescribed period then
such societies should be given exemption from
the LUC Tax. However, those societies, who do
not complete the self re-development within
the prescribed period, from such societies, the
LUC Tax should be recovered at present
prevailing rate.
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9 . REGARDING VARIOUS TAXES/CHARGES TO
THE REGISTERED HOUSING SOCIETIES
ADOPTING SELF RE-DEVELOPMENT –
B) Stamp Duty –
Since there is no third beneficiary other than the
existent co-operative housing society in the self
re-development project, there is no need of
executing any agreement. Thereby since the
proposed flats to the existing tenements are
available through self re-development, the
stamp duty should be charged like that the
stamp duty of Rs. 1000/- be charged from the
beneficiaries in the project implemented under
the Prime Minister Awas Yojna.
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9 . REGARDING VARIOUS TAXES/CHARGES TO
THE REGISTERED HOUSING SOCIETIES
ADOPTING SELF RE-DEVELOPMENT –
However, the stamp duty should be charged at
the prevailing rate on the agreement of the
tenements to be available for sale in the open
market other than the flats of the original
members in the new building to be ready after
self re-development.

C) Goods and Service Tax (GST) –

The concession should be given in the Goods
and Service Taxes to be paid by the registered
housing societies going for self re-development
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9 . REGARDING VARIOUS TAXES/CHARGES TO
THE REGISTERED HOUSING SOCIETIES
ADOPTING SELF RE-DEVELOPMENT –
D) Open Space Deficiency Development
Charges –

The registered housing societies adopting self re-

development should be given concession in the
Open Space Deficiency Development Charges.

30/4/2021
 10. NODAL AGENCY
It is necessary to have Nodal Agency for
providing finance, guidelines to the registered
co-operative housing societies adopting self re-
development in the state similarly to encourage
from time to time for implementing the said
scheme etc. In view of that, the State Co-
operative Bank, which is federal bank in the co-
operative sector, shall work as a nodal agency
through the District Central Co-operative Bank
in the respective District for the self re-
development of the co-operative housing
societies in the State.
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 10. NODAL AGENCY

The said nodal agency through the various

publicity media should publish detailed
information about entire procedure, process
regarding self re-development for giving
impetus to the self re-development of the co-
operative housing societies.

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11. PERIOD FOR COMPLETION OF THE SELF
RE-DEVELOPMENT SCHEME
Those registered housing societies in the State
who will adopt the self re-development, that
societies after sanctioning of the scheme from
the concerned Authority, should have to
complete the entire re-development within 3
years. It is binding on them.

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12 . CONCESSION IN THE RATE OF INTEREST
OF LOAN
A subsidy in the rate of interest of bank loan
should be given to the housing societies
adopting self re-development. Accordingly the
subsidy of 4% in the rate of interest should be
given from the Government.

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13. AUTHORITY FOR SELF RE-DEVELOPMENT

The Authority, giving approval for re-

development of housing societies at present in
the State, shall work as Planning Authority for the
self re-development of the co-operative
housing societies.

30/4/2021
 14. TRIPARTITE AGREEMENT
It shall be binding to execute Tri-partite
Agreement with necessary terms and conditions
regarding self re-development between the
finance providing institution to the co-operative
housing societies going for self re-development,
concerned co-operative housing society and
the contractor appointed by that society.

30/4/2021
15. SELF RE-DEVELOPMENT OF THE SOCIETY
UNDER THE PRADHANMANTRI AWAS
YOJNA
Pursuant to the guidelines in the Pradhan Mantri
Awas Yojna, if the concerned registered co-
operative housing societies are ready to built
35% flats in the sale unit for the beneficiaries in
the Economical Weaker Section/Lower Income
Group then like the Prime Minister Awas Yojna
the registered co-operative housing society will
get 2.5 F.S.I., subsidy of Rs. 2,50,000/- to the
eligible beneficiary and similar incidental
benefits will be given.
30/4/2021
 16. VIGILANCE COMMITTEE
It is necessary that the self re-development of
the co-operative housing societies is to be
completed within prescribed period. Similarly it
is necessary that the standard of the
construction should be of good quality. In view
of that, the concerned co-operative housing
society should have to form a vigilance
committee for controlling and supervising the
self re-development work comprising minimum
two representatives from the concerned society

30/4/2021
 16. VIGILANCE COMMITTEE
and minimum one representative from the
finance institution providing financial assistance
to the self re-development. It is binding on the
vigilance committee to submit progress report
to the concerned co-operative housing society
and similarly to the concerned planning
authority by giving site visit in every three
months at the site of the construction work of
new building.

30/4/2021
 17. GRIEVIANCE REDRESSAL COMMITTEE
The possibility of arising various types of
difficulties /complaints/objections while making
self re-development to the registered co-
operative housing societies in the state could
not be denied. Incidental to that there shall be
one Grieviance Redressal Committee on every
district level for solving the said difficulties.
Following officers/ office bearers shall be
included in the said committee:-

1) District Dy. Registrar in the concerned

district or representative Nominated by him.
30/4/2021
 17. GRIEVIANCE REDRESSAL COMMITTEE
2) Officer authorized from the Planning
Authority in the concerned District.

Those co-operative housing societies’

complaints regarding the self re-development
received to the committee, the committee
while redressing that complaints it is binding to
call the members in the vigilance committee for
controlling the working of the self re-
development and similarly minimum two
representatives from the concerned registered
co-operative housing society for hearing.
30/4/2021
18. CRITERION AND REGISTRATION OF THE
CONTRACTOR
The criterion of the contractors to be appointed
for the self re-development of the co-operative
housing society should be determined by the
concerned Planning Authority according to the
local situation /necessity. Similarly it shall be
binding to register with the concerned Planning
Authority by such contractors.

30/4/2021
19. APPOINTMENT OF THE CONTRACTOR FOR
SELF RE-DEVELOPMENT
The concerned society is appointed contractor
for the self re-development of the co-operative
housing society. Therefore it is necessary to
appoint proper and competent contractor. For
this the concerned co-operative housing
society should appoint a competent contractor
after seeing last three years financial balance
sheet of the contractor who is competent
technically/financially.

30/4/2021
 20) ACTION AGAINST THE CONTRACTOR
APPOINTED FOR SELF RE-DEVELOPMENT –
The vigilance committee shall put control on the
progress of the construction work and similarly
on the quality of the construction work after
receiving the construction work proposal to the
co-operative housing society regarding the
stages of the construction of the building /plan
of the construction of the new building from the
contractor for self re-development. Accordingly
if the progress of the work is not satisfactory
according to the report submitted to the co-
operative housing society by the vigilance
30/4/2021
 20) ACTION AGAINST THE CONTRACTOR
APPOINTED FOR SELF RE-DEVELOPMENT –
committee and if there is delay in completion of
the project, then the concerned co-operative
housing society can appoint new contractor by
removing the guilty contractor. Similarly the
concerned Planning Authority should put the
name of such guilty contractor in the black list
and new project should not be sanctioned to
such guilty contractor.

30/4/2021
 2. The said Government Resolution is
available on www.maharashtra.gov.in website
and its code number is 201909131802099409.

30/4/2021
 Let us be Partner in Nation Building

CA DILIP AGRAWAL_BNK

30/4/2021
 Let each one of us get empowered by sharing
knowledge. Let us Innovate, Get involved & Solve
issues collectively within four corners of Law.

Thank you for Getting involved in

the participation/discussion!

30/4/2021
30/4/2021
RERDA- 2016

Chapter I • Preliminary - Sec. 1 & 2

• Registration Of Real Estate Project

Chapter II And Registration Of Real Estate
Agents – Sec. 3 to 10

• Functions And Duties Of Promoter

Chapter III – Sec 11 to 18

• Rights And Duties Of Allottees - Sec

Chapter IV 19
30/4/2021
RERDA- 2016

Chapter V • The Real Estate Regulatory

Authority- Sec 20-40

• Central Advisory Council - Sec 41

Chapter VI : and 42

• The Real Estate Appellate Tribunal

Chapter VII : Sec 43 to 58

• Offences, Penalties And

Chapter VIII Adjudication: 59 to 72

• Finance, Accounts, Audits And

Chapter IX Reports: 73 to 78

Chapter X • Miscellaneous : Sec 79 to 92

30/4/2021
 PARTIES ACCOUNTABLE UNDER RERA

LAND DEVELOPER Competent

OWNER Authority

Real Estate
Architect Agent

Engineer/
Contractor CA
Allottees

30/4/2021
 • RESTRICTION ON PROMOTER TO ADVERTISE, MARKET,
BOOK, SELL OR OFFER FOR SALE, OR INVITE PERSONS TO
PURCHASE.

• REGISTRATION OF REAL ESTATE PROJECT

• EXTENSION OF REGISTRATION

• REVOCATION OF REGISTRATION – ON DEFAULT

• OBLIGATION CONSEQUENT TO LAPSE OF OR ON

REVOCATION OF REGISTRATION.

30/4/2021
 • Important Definitions under RERA
• Agreement for Sale Rule 10
• Rights & Duties of Allottees
• Obligation of Allottee :
- to make necessary payments and
- payment of interest in case of any delay
• The Authority to act as the nodal agency :
- To co-ordinate efforts in development of the sector
- To render advice to the appropriate Government to
ensure the growth and promotion of a transparent,
efficient
and competitive real estate sector;
- To establish dispute resolution mechanisms for settling
30/4/2021 disputes between promoters and allottees.
 Right of Builder against defaulter Allottee:-

Any breach of conditions of the Agreement be cause

of termination of agreement by the Promoter and
forfieture of Earnest Money.

30/4/2021
• FUNCTIONS & DUTIES OF PROMOTER
• Restrictions on Promoter regarding
veracity of advertisement or prospectus.
• Promoter not to accept deposit or advance
without first entering into agreement for
sale beyond 10%

30/4/2021
• Obligations of Promoters :
- Register the project with the authority before sale.
- Adhere to approved plans & project specifications,
- Publish complete details of projects on website.
- deposit 70% of funds in a separate bank account, to be used
for that real estate project only after certifying by
CA, Engineer and Architect.
- to refund moneys in cases of default;
- Update website with quarterly information on sale and progress
- Get the accounts Audited by CA within 6 months.
- Register the Agreement on receipt of 10% of amount.

30/4/2021
 • Promoters to adhere to sanctioned plans
and project specifications.
• Obligations of promoter in case of
Transfer of a real estate project to a third
party.
• Obligations of promoter regarding
insurance of real estate project.
• Transfer of title.
• Return of amount and compensation.

30/4/2021
 OBLIGATION OF THE PROMOTER WITH ALOTTEES

Contractual Obligations Statutory Obligations

1. Register Ageement on Receipt of Advan

1. Enter into Agreement 2. Complete the Building in all respect
2. Registration of Agreement 3. Provide O.C., BCC.
3. Receive the Flat Consideration 4. Provide Common Facilities
4. Hand over the Possession 5. Water Connection
of flat as agreed 6. Electric connection
7. Disclose the information
8. Provide all Documents
9. Registration of Society / Legal Body
10. Providing Conveyance
30/4/2021
 MOTHER OF REAL ESTATE
DEVELOPMENT LAW
Real Estate (Regulation & Development) Act, 2016

Concerned
Related to
Applicable with Flats, Building,
Owning / acquiring
All Over India Development, Plots
Rights
Commercial, Resiential

Implemented through all

the connected Freehold Rights Leasehold Rights
Central & State
Law applicable

30/4/2021
 • Representatives from consumers and
builders for Conciliation Proceeding
• Adjudication Proceedings
• Order by Regulatory Authority

30/4/2021
 PARTIES ON WHOM OBLIGATIONS
ARE MADE APPLICABLE under RERA

RE Agents, Professionals
1.Promoter Contractors and 3.Allotees
other Agencies Connected (Flat Buyer/s )
with RE Projects

Builder /
Land Owner Single Group
Developer

1. Individual, 2. Firm. 3. Company, 4. Assn of Persons,

5. Govt., 6. Semi Govt. 8. Local Authority 9. Trust
10. Society – u/SRA, 11. Co-operative Society u/ MCS,
12. LLP or any other person or group of persons.

30/4/2021
 Objects of the RERA

Regulation & Transparency Protecting

Development and Efficiency Consumer
Interest

30/4/2021
• Dispute resolution mechanisms:
- Adjudicating officer to assess damages
- Regulatory Authority to settle any disputes
- Real Estate Appellate Tribunal to hear appeals
- Jurisdiction of Civil Courts barred
- Consumer Courts to continue.
• Penal provisions :
- To ensure compliance of Provisions of Act
- To comply with orders of the Adjudicating
Officer, Authority and Tribunal
30/4/2021
 REAL ESTATE Regulatory Authority :
Not a separate Approval Authority

2
Screening Authority 3
Promoters: between Promoter & Flat Purchasers
To get approval from Purchasers and Consumer to
Competent 1Authority: Collect all the
Information,
transact with
Planning and local
Approval, Documents Promoters.
Authority like PMC,
& persons involved in
MCGM etc. the execution of RE
Project & Grant
Registration &
Redress Disputes
30/4/2021
U/S. 3 COMPULSORY REGISTRATION OF REAL ESTATE PROJECT

FOR DEVELOPMENT
OF
ANY IMMOVABLE PROPERTY
REGISTRATION
IN PHASES OR OTHERWISE
And EXEMPTED
All Pending Projects where
OC is not received within 3 months
And New Project before offer for sale.

AREA DOES RENOVATION

NOT All Completed OR REPAIRS
EXCEED 500 Projects Where WHICH DOES
SQ.Mtr or OC is Granted. NOT INVOLVE
Less than 8 Units REALLOTMENT
& MARKETING
30/4/2021
 U/S. 4 DISCLOSURE OF INFORMATION BY THE PROMOTER

By Registration of the Project for development of immovable property in

specified form by paying prescribed fees and by submitting information.

Proposed
No & Size of Approvals Declaration by
Project &
Layout, phases for each phase Promoter
facilities

He has Title &

Project to be Project to be 70% of Realized
land is free from
completed completed amt to be deposited
Encumbrances &
as per Terms within the period in a separate a/c
Specimen of
of Registration of sanction by In Sch. Bank
Agreement for sale
And schedule of Competent For meeting cost
Conveyance deed
completion Authority of project
Allotment letter etc
30/4/2021
 Bombay HC order dated 14th October
2019
In the case of….

Goregaon Pearl CHSL ....Appellant

vs
Dr.Seema Mahadev Paryekar & Ors.
...Respondents

30/4/2021
 Judgment
➢ This appeal order against an order passed by Bombay City Civil Court
at Dindoshi, Mumbai, the Appellant Society which had restrained the
society from alienating, or creating any third party interest in, the suit
flat.
➢ where the parties- developer & flay purchasers had already gone right
up to the Supreme Court.
➢ The controversy in the present matter concerns redevelopment of a
property owned by the Society, who is a cooperative housing society
of about 60 members, who have already handed over possession of
their respective fats for redevelopment and are currently said to be
roofless .The redevelopment was entrusted by the Appellant society
30/4/2021
 to the developer under a development agreement. Under this
agreement, the developer was duty bound to complete the
project within 22 months from the date of receipt of
commencement certificate with a 3 months grace period. The
project involved construction of two wings of the new building,
Wings A and B. Both wings were to partly accommodate the
members of the Appellant society and partly third party
purchasers of the free sale component of the project. In
pursuance of the agreement, all members of the Appellant
society vacated their respective fats by handing over
possession to the developer.

30/4/2021
 Developer had executed a bank guarantee in favor of the society
for Rs.5 crores for fulfilling his commitment under the agreement.
On 17 June 2008, CC for construction of the new building was
issued by the ‘MCGM’ to the developer. Though construction was
undertaken in pursuance thereof, it was nowhere near
completion even as late as by August 2016, that is to say, even
after passage of 8 years from issuance of the commencement
certificate. By issuing notice dated 16 August 2016, the Appellant
society revoked the Power of Attorney given by it to the
developer for development of the suit property.

30/4/2021
 This was followed by an arbitration petition under Section 9 of the
Arbitration and Conciliation Act, 1996 by the Appellant society
seeking inter alia appointment of a court receiver for taking over the
redevelopment project and completing it. Various breaches on the
part of the developer were alleged in the arbitration petition. These
included non-completion of the project within the stipulated period of
25 months, change of plans without the society’s consent and
unauthorized construction of two additional floors for which stop-
work notice was issued by MCGM. In the meantime, the bank
guarantee of Rs.5 crores was invoked and encashed by the
Appellant society. After various interim orders passed by this court
on that arbitration petition, finally, on 7 July 2017, the parties
entered into consent terms.
30/4/2021
Under these consent terms, the total liability of the developer was
fixed at about Rs.7.62 crores. It was agreed that Rs.2.5 crores would
be adjusted, from out of the bank guarantee amount of Rs.5 crores,
towards arrears of rent and balance Rs.2.5 crores towards share of
profits of the Appellant society. The consent terms provided for
completion of Wing A with part OC on or before 31 December 2017
with a grace period of three months and completion of Wing B with
part OC on or before 30 June 2018. The consent terms had a
termination clause in the event of breach, if any, on the part of the
developer. Post-dated cheques were issued by the developer in
pursuance of the consent terms.

30/4/2021
 The developer committed breaches of the consent terms. Not only
was construction of A and B Wings not completed within the
respective stipulated periods, but even the cheques issued in
pursuance of the consent terms were dishonoured. This resulted
into the Appellant society filing a contempt petition against the
developer . This court passed an order in that contempt petition
requiring the developer to pay a sum of Rs.5.42 crores in
installments.
➢ Since even this order was breached by the developer, by their
notice dated 9 June 2018, the development agreement and
power of attorney were terminated by the Appellant society.

30/4/2021
Appellant society seek various injunctive reliefs against the developer.
Finally, by order dated 17 September 2018 passed and allowed the
Appellant society to appoint a new developer or contractor for completion
of the project.

30/4/2021
 ➢ the developer was directed to handover possession of the
suit property to these private receivers.
➢ Decision taken by the General Body of the Appellant society,
which required all its members to be accommodated in Wing
B, which was at a much more advanced stage of completion.

30/4/2021
 ➢ Dissatisfied, the developer carried the matter in a Special Leave
Petition (‘SLP’) before the Supreme Court. The Supreme Court,
by its order dated 21 January 2019, rejected the SLP.
➢ some of the fat purchasers under the developer developer had
also challenged the order of the arbitrator passed, by a separate
order dated 21 January 2019 rejecting the SLP of these fat
purchasers observed and found no ground to interfere as the SLP
of the developer against the very same order had been
dismissed, the third party purchasers were given liberty to
approach the arbitral tribunal and seek appropriate remedies

30/4/2021
➢ The fat purchasers thereafter approached the arbitrator by an
application seeking modification of his order dated 17 September 2019.
The arbitrator, after hearing the parties at length, by his order dated 27
February 2019, rejected the application
➢ It is in the backdrop of these facts that on or about 30 March 2019,
puchasers herein filed her own suit for specific performance of her
agreement for sale with the developer (agreement dated 8 June 2015)
before the City Civil Court at Dindoshi. On her ad-interim application,
the City Civil Court passed a temporary injunction, restraining the
Appellant herein from alienating or creating third party interest in the fat
allotted to the purchaser by the developer in B Wing .

30/4/2021
 ➢ The project, after all, has been judicially formulated and has
stood judicial scrutiny right up to the Supreme Court; it cannot
be allowed to be jeopardized in this manner. Balancing of
equities demands that it would rather be in the interest of
justice that the project be allowed to go through with all fats for
members of the society being provided in Wing B

30/4/2021
➢ protective reliefs be extended to the developer and all third parties
claiming under him including the buyer herein by injuncting the
society from creating third party rights in the whole of Wing A.
➢ the impugned order of the trial court was quashed and set aside.
➢ Clause (zk) of Section 2 thereof, learned Counsel submits that the
Appellant society is one, who has caused to be constructed a
building consisting of apartments for the purpose of selling
apartments to other persons and as much as the developer
developer, it must be treated as a promoter of the project under
the provisions of RERA.

30/4/2021
➢ This court, in its judgment delivered in the case of Vaidehi Akash
Housing Pvt.Ltd. vs. New D.N. Nagar Co-op. Housing Society Union
Ltd.1 , has considered a more or less similarly worded definition of
“promoter” in Maharashtra Ownership Flats (Regulation of the
Promotion of Construction, Sale, Management and Transfer) Act,
1963 (“MOFA”) in the context of a similar development agreement,
where the landowner society had terminated the agreement on
account of breaches of the developer and third party purchasers
claiming under the developer had claimed that the society should be
treated as a promoter and be asked to complete the project. This
court held that there was no privity of contract in such a case as
between the society and third party purchasers claiming through the
developer.
30/4/2021
➢ If, for any justifiable reason, the development agreement is terminated
by the society and the developer is unable to obtain specific
performance of the development agreement as against the society, no
third party purchaser claiming under the developer can likewise seek
specific performance against the society. This Court, in Vaidehi Akash,
observed as follows:
➢ definition of “promoter” contained in Section 2(c) of MOFA.
“promoter” means a person and includes a partnership firm or a
body or association of persons, whether registered or not who constructs
or causes to be constructed a block or building of fats, or apartments for
the purpose of selling some or all of them to other persons, or to a
company, cooperative society or other association of persons, and
includes his assignees; and where the person who builds and the person
who sells are diferent persons, the term includes both.”
30/4/2021
 ➢ The Society is the owner of the property and has entered
into an agreement with the developers, i.e. Vaidehi, for
redevelopment of its property
➢ The owners of lands entering into agreements for sale or
development agreements with promoters/developers would
be held as being subject all liabilities of a promoter, such as
liability of disclosure of plans and specifications, outgoings
etc. under Section 3 of MOFA, entering into agreements in
accordance with Section 4, giving possession of flats and
suffering the consequences of Section 8, forming co-
operative societies of fat purchasers under Section 10, and
so on.

30/4/2021
 ➢ Referring Vaidehi Akash case, Counsel argued very
interesting points:-
➢ the case of Ramniklal Tulsidas Kotak Vs. Varsha Builders , was
not pointed out to this court when it delivered its judgment in
Vaidehi Akash
➢ the law stated by this court in Vaidehi Akash case in the context of
MOFA does not hold good under the provisions of RERA.
➢ construing the expression ‘title of the promoter’ used in Section
3(2)(b) of MOFA

30/4/2021
➢ The court said:- Promoter must fall in either of the
four categories:
➢ (1) owner of freehold land or
➢ (2) lessee of the land with authorization to construct fats
and sell the same on ownership basis or
➢ (3) Agreement purchaser of the land to be developed
under an agreement (not terminable) from a lawful owner
thereof, who, in turn, must have a valid title to the land or
(4) agent of the owner or lessee entitled to construct and
dispose of fats on ownership basis.

30/4/2021
➢ The provisions of RERA do not make any diference either.
RERA has been introduced to establish a regulatory authority
for regulation and promotion of the real estate sector and to
ensure sales in the sector in an efficient and transparent
manner and to protect consumers of the sector. The definition
of ‘promoter’ in RERA, for our purposes, is on similar lines as
MOFA. Section 18 of RERA, on which strong reliance is placed by
learned Counsel for buyer, requires promoters to discharge their
obligations and provides remedies for the purchasers, without
prejudice to the purchasers’ other rights, in the event of the
promoters’ failure to discharge the obligations. Section 19, which
follows, entitles the allottee to obtain possession of the fat or
apartment. Any grievance
30/4/2021
 ➢ of the purchaser under RERA is redressed by the regulatory
authority.
➢ None of these provisions either make the owner of the freehold or
leasehold interest in the land, who enters into a development
agreement with a developer (who, in turn, enters into fat
purchase agreements with third parties on the basis of such
development agreement), liable for complying with the obligations
of the developer under RERA. In fact, if at all there is any doubt in
respect of the position of landowners vis-a-vis development
projects registered under RERA, particularly where such
landowners are entitled to a share in the total revenue generated
from sale of apartments, the same has now been clarified by

30/4/2021
➢ Maharashtra Real Estate Regulatory Authority that only such
individuals/organizations would fall within the definition of
‘promoter’ in RERA, on account of being landowners, as would
be specified as such at the time of on-line registration with the
Authority. It is nobody’s case that the Appellant society is such
specified promoter in the on-line registration. Besides,
grievance, if any, in this behalf must be addressed to the
regulatory authority thereunder, and not to a civil court.
➢ The impugned city civil order is, accordingly, quashed and
set aside

30/4/2021
 ➢ the interest of buyer has been adequately protected for
the time being and no further protection, which will
have the effect of disturbing what has been ordered by
the arbitrator and sustained by the Supreme Court, is
called for at all. The application for stay is,
accordingly, rejected.

30/4/2021
 Bombay HC order dated
25th February, 2021
In the case of……..

Bhavna Rajesh Doshi & ors. … Applicants /Interveners

In the matter of
SBI Staff Dream Co-operative Housing Society Ltd. … Petitioner
Vs
Surya – Landmark Developers Private Limited ... Respondent

30/4/2021
 ➢ Interim Application is filed seeking to recall or set aside the
order dated 6th March 2020 passed in the above Contempt
Petition in Commercial Arbitration Petition.
➢ the Applicants had purchased, for valuable consideration,
certain flats in the free-sale component of a building
belonging “SBI Staff Dream Cooperative Housing Society
Ltd.” (say, “the Society”), and which was to be developed by
the developer.

30/4/2021
 ➢ the Applicants submitted that the aforesaid order ought to be set
aside as their rights are vitally affected and no notice was given to
the Applicants before passing the aforesaid order. The learned
counsel submitted that the order passed on 6th March 2020,
and more particularly paragraphs 15 and 16 thereof, seriously
affect the rights of the Applicants, and hence these paragraphs
ought to be modified.
➢ This order was passed in a Contempt Petition which has been filed
by the Society against the developer. In this detailed order, this
Court has held that it saw no reason why the Development
Agreement should not be terminated as a necessary
consequence and as an alternative to a jail sentence and fine
being imposed.
30/4/2021
➢ It was on this basis that the Advocate for the developer, on instructions
from the developer, accepted the termination by the Society of the
Development Agreement. In such a situation, the grievance, if any, of
the Applicants cannot be against the Society. The Applicants have no
right vis-a-vis the Society and they certainly have no privity with
the Society. This being the case, they certainly have no locus to
contend that the Society is not entitled to terminate the
Development Agreement entered into with the developer. Their
grievance, if at all, would be against the developer from whom they
have purchased their flats in the free-sale component.

30/4/2021
➢ Applicants herein, purchasing flats in the building to be redeveloped by
the developer, do not get any rights against the Society, as there is no
privity between the Applicants and the Society
➢ Applicants are at liberty to raise all their contentions against the
developer but no injunction on any part of the property that belongs to
the Society or is to be developed for the Society’s benefit can be
granted in a Suit for specific performance of the agreement between
the Applicants and the developer.
➢ Interim Application is without any merit and is accordingly
dismissed

REDEVELOPMENT & RERA Impact by CA

30/4/2021 DILIP AGRAWAL-
9323344556/rera.dilip@gmail.com
 Bombay HC order dated
12th March 2021

ORIGINAL CIVIL JURISDICTION

ARBITRATION PETITION
In the case of:-
•Chirag Infra Projects Pvt Ltd …Petitioner
Versus
•Vijay Jwala Coop. Hsg Soc Ltd & Anr …Respondent

30/4/2021
 ORAL JUDGEMENT
➢ Usual story of a solitary member of a society obstructing the
redevelopment of the society building.
➢ It does not matter to this member that the building is in a
dilapidated condition unfit for human habitation.
➢ It does not matter to him that the building has been declared as
such by the Planning Authority and categorized as
a‘C1’building.
➢ It does not matter to that dissenting member that the building
now poses a risk to all occupants— including the dissenting
himself— and ,in addition , others in the vicinity .

30/4/2021
➢ It also does not seem to matter to this Member that this
actions come at the very real cost of other member of
the society, all 19 of whom have vacated their premises
as far back as in November 2018
➢ 2nd Respondent’s persistent obstruction for the last 6
years are beyond shocking . It is only he who can tell
right from wrong , that it is only he who knows what is
good for all
➢ That he has never assailed the Society’s resolution
regarding re-development or the redevelopment
agreement itself,

30/4/2021
➢ Narrative ,this property being on MHADA land, it required a no
objection certificate from MHADA. This came on 2nd August 2019,
but it was just a year after a structural audit by the Municipal
Corporation of Greater Mumbai on 16th june2018 declaring the
Building in the ‘C1’ category ,i.e, as unsafe and unfit for human
habitation.
➢ Urged is that the building was meant for persons from the lower
income group and, therefore, permission of or from the Social
Welfare Department was essential and was a requirement
➢ It is not demonstrated any where how the SWD has the power or
authority in law overdevelopment projects.

30/4/2021
➢ MHADA passed an order under Section 95A of the MHADA Acton17th
October 2018 against Kondvilkar.
➢ Building ,after obtaining the written consent of not less than 70 percent. Of
the total occupiers of that building and a No Objection Certificate for such
reconstruction of the building is issued by the Board
➢ Occupiers, It would be competent for the Board, not withstanding anything
contained in Chapters VI and VII of this Act ,to effect summary eviction of
such occupiers.
➢ Any person who refuses to vacate such premises or obstructs such
eviction shall , on conviction , be punishable with imprisonment for a
term which may extend to one year or with fine which may extend to five
thousand rupees , or with both.

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 ➢ Developer has obtained transit accommodation and fully paid
up the license fee in respect thereof.
➢ The Society’s general body resolution is a foundational
document.
➢ Decisions taken by a majority bind all.
➢ Member loses his individual identity upon becoming a
member, and his identity is subsumed with in the society
of which he is a member.
➢ A person can not both claim the benefits of membership
and yet deny the authority of the general body of the
society to bind that member by a decision taken by
majority in a properly convened meeting.

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 ➢ the Court said: It is to be noted that once the person becomes a
member of the Co-operative Society he loses his individuality
with the Society and has no independent rights except which is
given to him by the statute and bye-laws.
➢ Out of 18 members, 13 members already handed over vacant
and peaceful possession of the flats to the petitioner to carry out
redevelopment.

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 ➢ (a).The occupant will be given time until 30th April 2021 to vacate
Flat No.145 by himself , his spouse and all their belongings .
Possession will be delivered to the society , which in turn will
deliver possession to the developer. Before taking possession ,
the Petitioner will deposit with the Court Receiver all amount of
transfer charges, corpus , etc as already paid to other members
,excepting transit rent, for which I have made separate provision
below . If amounts have not paid to other members, then no
deposit is required.
➢ The occupant will be afforded all the benefits and incidents
available to all other members of the society including transit rent
from the date of handing over of possession(not from any earlier
date),the transit accommodation ,shifting and corpus charges.
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➢ If the Occupant:2nd Respondent has not vacated by 30th April 2021, the
Court Receiver, High Court ,Bombay will proceed to forcibly take
possession from the occupant 2nd Respondent with the
assistance of the police authorities from Goregaon Police Station.
The Court Receiver is at liberty to break open the locks of the said
premises.
➢ Any attempt by the occupant 2nd Respondent to obstruct the Court
Receiver’s department from taking possession, either by filing
complaints or otherwise, will be treated as an act of Contempt of
Court and will be dealt with as such.

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 ➢ The police authorities at the Goregaon Police
Station will not take cognizance of any complaint
or allegation that the Occupant makes against
any officer of this Court including the Court
Receiver or the Court Receiver’s duly authorise
representative.

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Disclaimer

All the efforts are made to cover the important

provisions of the law. The material contained herein is
not exhaustive, and contains certain generalizations.
The latest Provisions and Notifications must be viewed.
The presenter is not responsible for any loss incurred on
the actions taken based on the material presented.

CA Dilip Agrawal

30/4/2021 rera.dilip@gmail.com