Our society went into redevelopment in 2011. For the last one year upto 2017 did not give rent. In Sept. 2017 the builder completed one bldg and gave keys to all 40 members to complete furniture work. Since the builder was not giving rent ,most of the members occupied their flat and are staying from last 2 years.some members wanted to rent their. But the builder issued a letter stating that one should give it for rent on their own risk and any damages will be born by the owner. Meanwhile the society is asking INDEMINITY bond to be submitted to them for the letter issued by the builder or else the society will not allow the flat to be rented out. Please advice.
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It is responsibility of builder to obtain OC
2) why should flat owners give indemnity bond when builder has failed to obtain OC
3) file complaint against builder before consumer forum and seek orders to direct builder to obtain OC
4) pay compensation for mental torture undergone by you
5) then give flat on rent
This is certain that if members are putting their flats on rent, they only will be responsible for any risk. Members can only claim rent from builder if it was agreed in redevelopment agreement.
No other option except to give indemnity bond and even if bond not given, risk shall be borne by members only. And if construction is complete than for construction related risk, builder only will be responsible even after submitting IB.
- Occupancy Certificate evidences the completion of the building as per the approved plan and compliance of local laws.
- If the builder is unable to obtain the occupancy certificate, it means that the builder has violated building law or deviated from Construction Plan, and further it is illegal to occupy in a building or apartment that doesn’t have an occupancy certificate.
- Further, It is illegal to occupy in a building or apartment that doesn’t have an occupancy certificate. Buildings without OCs are not given a water connection and are charged a higher property tax.
- Hence, before renting the property , you should approach the builder for getting OC , and if builder fails , then approach the Consumer Court .
You can move against the said Society before consumer court and seek interim relief of letting you rent. Otherwise you can file writ petition before HC for the same for urgent relief
1. The owner alone is lawful author to deal with the property as per his own accord.
2. So no laws pr bye laws least by the society can restrain the owner to lease ut his property to oters.
3. Since the damage is any is caused by the tenant is to be borne by the tenant or the landlord, there is no requirement for signing any indemnity bond either.
1. In Mumbai, more than 50% buildings are presently without OC and yet Flats are being Sold /Leased /Rented /Mortgaged /whatever.... without any restrictions from any authorities.
2. AS it is Society or Builder have no legal jurisdiction to restrain /restrict the Flat Owners from leasing /renting out their Flats to whosoever they may wish.
3. For broader understanding in such cases, you may prefer to visit this link:
Housing Society has no legal right to refuse any Bachelor Tenants /Paying Guests. IF Society refuses THEN it is doing a Criminal offence:
https://chshelpforum.com/bachelor-tenants
We do not have any kind of Act, Rules and bylaws wherein any members of Society is supposed to give any kind of bond to Society for ranting out flat in underdeveloped conditions of redevelopment of Society from 2011 to 2017 and till as of today.
You Please ask the Society under which provisions of Law they are authorized to take bond from you to rent out your flat in redevelopment scheme of the Society.
How are people residing in the buildings when the OC is not received. Please refer to the Development Agreement entered into with the developer for giving rent to the members. If the DA says the developer has to pay rent to the members, then it is binding upon him to do so.
Dear Sir,
There is no harm in renting the flats or giving the indemnity bond because it is just a process. But, you should clearly specify the things enabling you to be free out of all the hassles.
society is justified in asking for the indemnity since the members are residing in the building without an OC!
Form an association for the purpose
Issue a legal notice to builder, if he still doesnt give possession with OC, then file a complaint with RERA or Before Consumer Forum.
Yes you have to do that.
1. Owner can give indemnity Bond to society because society wants to safeguard themselves from any damage caused by tenant.
2. The owners can mention in rent agreement about recovery of damage if any caused during stay of tenant in the premises.
These are the local issues which may not find a place in the law or the rules meant for this.
Since the OC has not been obtained, if the damages are caused by the tenant then the owner has to undertake the liability for all such issues.
Sometimes the owners may not cooperate in this regard in future, hence to be in an abundant caution, the society may mandate from its members to furnish an indemnity bond to this effect.
There is no legal infirmity in furnishing an indemnity bond.
