• Redevelopment - private invitation for tender process

I live in a society of 36 members. 34 members including myself want the redevelopment to happen. Our society started the process and decided not issue the tender publicly but by private invitation.
All members were asked to submit the list of builders who should be invited.

Now I have observed the following :

1.They have not sent the tender invite to the developers, who I had suggested.
2. They showed me a final tender but the actual Tender floated has 4 points which are different and favors the developer.
3. A list of amenities was mentioned in the tender after confirming with the PMC that it can be made on our plot, now they are not giving us some of these amenities.

Now they are going on passing all the resolutions because they have the majority.

Please let me know :

1. I feel they have committed a fraud by showing me a tender and sending something else, What are my legal options for the fraud behavior?

2. Is there any legal option I have since they have not sent the invite to my recommended developer.

3. If a tender mentions certain amenities, the PMC had confirmed they can be made and there is no issue from the BMC or approvals to make these amenities , Is the builder bound to deliver these or with the majority he can violate this point of the tender?
Asked 4 months ago in Property Law
Religion: Hindu

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5 Answers

builder is bound to provide amenities mentioned in tender duly accepted by him 

 

2) you can draw attention of members that invite has been sent to only limited builders . further applications should be invited   from other builders before decision is taken 

Ajay Sethi
Advocate, Mumbai
96561 Answers
7784 Consultations

Dear Client,

1. As a party to the tender, if you felt that the process was fraudulent, then there are several things you can do legally. First, you may approach the Registrar of Cooperative Societies with a complaint focusing on the differences between the tender that was made available to you and the one published. Besides, you can write to the managing committee via a legal notice and demand that they explain why these irregularities exist and come clean over them. Another course of action is to approach the court and seek a legal remedy in the form of bringing an action against the society and the managing committee for fraud and misrepresentation. Another thing you can demand is a temporary stop to redeveloping by the court until the problem is solved.

2. As for your chosen developers, you can legally do something in this case. One can still add this problem to the list of concerns for the Registrar of Cooperative Societies and point out that the identified tendering process is not transparent and might be biassed. You can also state this matter in the legal notice you served them regarding their failure to invite your recommended developers. Also, you may request a court to extend the tender process to the developers you recommended, particularly if you can prove the unfairness of the selection process.

3. Tenders often come with specific written specifications, and where the tender has stipulated specific amenities and can legally offer them or there is no legal bar to the builder offering them, then legal obligations compel the builder to offer these amenities. In this situation, if the builder is reluctant to provide these amenities, you may approach the Consumer Forum by stating that the builder has committed a deficiency in service. You may also sue to have the terms of the tender complied with or apply to the court for a specific performance order to compel the builder to tender in accordance with the set-down requirements.

Anik Miu
Advocate, Bangalore
10031 Answers
119 Consultations

1. Has the decision about the tender process been recorded?

 

2. If yes, you can simply lodge your objection to the Society under copy to the Registrar seeking correction in the process.

 

3. In case it is not corrected, you can file a Dispute Case before the Registrar of Societies.

Krishna Kishore Ganguly
Advocate, Kolkata
27354 Answers
726 Consultations

If the conditions in the tender are not followed by the developer or if the society is in hand and gloves with the developer favoring the developer then you may bring the lacuna to the  notice of the society in writing by sending a letter of protest in this regard stating that such deviations or illegal acts should not be encouraged especially if it violates the PMC conditions for providing the amenities. 

If the society ignores the genuine reasons stated by you and decides to proceed as per their plan you an approach the registrar with a similar complaint and request for intervention or approach the cooperative court with an injunction petition seeking to restrain the society from granting permission to this developer without inviting tenders from various other developers offering a better scheme for the redevelopment.   

This developer is bound to abide by the rules and conditions as set out by PMC or BMC

T Kalaiselvan
Advocate, Vellore
86760 Answers
2318 Consultations

- As per law, Society by law and resolutions must be limited to the mandate of governing the society’s affairs and nothing more.

- Further, every resolution of a housing co-operative Society shall be passed at its general meeting by a majority of total members with right of/vote or two-thirds of members present and voting whichever is less.

- Further, as per rules of redevelopment of society, the managing committee should convene a special meeting of the members to discuss the redevelopment project.

- Further, the bye-laws state that 75% of the total number of members should be in agreement with the redevelopment project before it can be officially undertaken.

1. If the society has not followed the rules and not taken consent from 1/3rd members , then you can challenge the decision , and can lodge a complaint before the management and if no positive responses then approach the registrar.

2. Reply No.1

3. Yes, the builder is bound to provide all the amenities before handing over the possession , and if violate then a complaint can be filed against the said builder. 

Mohammed Shahzad
Advocate, Delhi
14316 Answers
219 Consultations

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