• Stay redevelopment

For our society redevelopment, we have a commercial premises on ground floor and builder has made a very discrimatory and unacceptable offer as under :
- he has refused to give us the fungible and despite our written indication of bearing any extra cost or accepting additional space on floor above, he refuses. 
- builder has offered a rent far below existing market rate . 
- builder has not given any bank guarantee and given a lien on developed flats in same building to be redveloped. this olffers no guarantee of he fails to complete project.

other members have been offered very lucrative deals and have signed and proceeded to get IOD .]

what can we do to stop builder and society from proceeding.
Asked 3 days ago in Property Law
Religion: Hindu

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13 Answers

If majority of members are in favour of redevelopment court would not grant any stay 

 

it is well settled law that few members cannot hold the redevelopment of building to ransom by refusing to vacate the premises 

 

3) It's crucial to include a clause in the redevelopment agreement that specifies the developer's obligation to provide a bank guarantee before construction begins 

 

4) The GR dated July 4, 2019, for redevelopment of cooperative housing societies issued by the Maharashtra government, provides for the points to be included in the development agreement (DA). Clause 18(2) provides that the developer shall give 20%of the total cost of the redevelopment project as bank guarantee (BG) to the society. Your society should insist on getting a BG as mandated

Ajay Sethi
Advocate, Mumbai
98109 Answers
7970 Consultations

The  Government of Maharashtra  has issued several Government Resolutions under Section 79A Maharashtra  Cooperative Societies Act governing redevelopment of cooperative housing societies. The  latest directives provide that..

  1. At least 51 per cent members must give written consent to initiate redevelopment process.
  2. 75 per cent member approval is required to finalize and execute the redevelopment agreement.
  3. PMC must be appointed only through transparent selection process.
  4. Developer should be selected only through tender.
  5. The developer must provide a detailed financial feasibility report before finalizing agreement.
  6. You can seek direction for, State Government to the developer against the  irregularities he is committing.
  7. You can also complaint to Deputy Registrar of approach High Court.
  8. If any injustice is done by use of majority, you can approach State Government, Deputy Registrar, HC against the brut majority. 

Ravi Shinde
Advocate, Hyderabad
4766 Answers
42 Consultations

You can approach court for necessary reliefs if no bank guarantee is being given by builder 

 

why are you being discriminated against by the builder 

Ajay Sethi
Advocate, Mumbai
98109 Answers
7970 Consultations

Has society accepted the offer ? 

has development agreement been signed with builder?

 

has 79 A procedure been completed ?

Ajay Sethi
Advocate, Mumbai
98109 Answers
7970 Consultations

1. Your Society must have entered in to an agreement with the builder and before that they might have called for a AGM and passed a resolution to that effect  when you should have recorded your objection.

 

2. If yes, then what is the outcome of your said objection?

 

3. You can file a petition before the Registrar of the Society praying for his intervention by appointing an Arbitrator for hearing the matter.

 

4. In case, you do not get favourable order, you can file an appeal  before the High Court against the said Order.

Krishna Kishore Ganguly
Advocate, Kolkata
27561 Answers
726 Consultations

1. If you also have legalised your encroachments like others then you have a genuine claim to be dealt equally with others.

 

2. You can raise your grievances/objections before the Registrar of Societies as suggested in my last post. 

Krishna Kishore Ganguly
Advocate, Kolkata
27561 Answers
726 Consultations

1. If you have also same area like others, you deserve the same treatment financially.

 

2. If not, the your claim becomes weak.

Krishna Kishore Ganguly
Advocate, Kolkata
27561 Answers
726 Consultations

What You Can Do to Stop Redevelopment:

  1. File Complaint with MahaRERA

    • Claim discrimination, unfair rent, no bank guarantee.

    • RERA can stay the project or order fair terms.

  2. Approach Bombay High Court or Cooperative Court

    • File for stay/injunction against builder & society for unequal treatment.

  3. Complain to Deputy Registrar of Cooperative Societies

    • Society cannot impose unfair majority decisions.

    • Ask for investigation and stay on process.

  4. Legal Grounds

    • Discrimination: Others got 35–39% extra area, you only 15%.

    • Risk: No bank guarantee, only lien = unsafe.

    • Illegal favoritism: Encroachments legalized for others, unfair offer to you.

📌 Next Step:

  • Send a legal notice to builder and society.

  • Consult a redevelopment lawyer in Mumbai.



Shubham Goyal
Advocate, Delhi
906 Answers
4 Consultations

In Acknur Constructions Pvt Limited Vs. Fardoon Apartment Cooperative Housing Society (Bombay High Court)

In a path-breaking judgment, the Bombay high court has held that even a single dissenting member of a cooperative housing society cannot be thrown out by a builder based on a mere development agreement with the society and a majority of the flat owners in it for redevelopment of the building. Expressing serious concern at the “disturbing trend of developers approaching the court and seeking eviction and dispossession of non-cooperating members of housing societies’’, Justice S C Dharmadhikari held that any redevelopment activity “should not compromise the rights of the members and must safeguard the existence of the society.

However please note that if the society has passed resolution approving the contract to the developer with the conditions therein by passing a resolution with two third majority, then your proposal to initiate legal action or obtain stay may not be entertained. 

If the builder is not considering the FSI as per the regulations of the redevelopment then you can fight for your rights through sub registrar or cooperative court. 

Confirm if the developer has not furnished bank guarantee and is not willing to pay rent to you at par with other members then you  have a case against the developer before the cooperative court.

T Kalaiselvan
Advocate, Vellore
88311 Answers
2388 Consultations

The fungible FSI shouldn't be more than 35% of the floor area in residential buildings and 20% of the floor area in developments for businesses and industry. Any additional space that is purchased is illegal, and the builder may be subject to harsh penalties, project demolition, or even jail time.

You may demand 20% of the FSI since yours is a commercial premises. 

If the developer is showing discrimination and doing injustice to yo particularly then you can drag the developer to court of law seeking justice.

T Kalaiselvan
Advocate, Vellore
88311 Answers
2388 Consultations

During redevelopment in Mumbai, the rental amount payable for commercial premises and residential flats is typically negotiated between the housing society and the developer, and is not fixed by law

The rental amount is influenced by factors like:

 The prevailing rental rates for similar properties in the area. 


 The size of the commercial premises or residential flat. 

The expected length of the redevelopment project. 


 The specific terms and conditions agreed upon by the housing society and the developer. 

Developers are required to follow certain financial protocols as per RERA guidelines, and refusal to provide a bank guarantee could be considered a violation. 

T Kalaiselvan
Advocate, Vellore
88311 Answers
2388 Consultations

Any decision taken by majority that causes injustice to minority is liable to be corrected by Court. You will get relief for High Court. 

Ravi Shinde
Advocate, Hyderabad
4766 Answers
42 Consultations

You can challenge same under writ petition 

Prashant Nayak
Advocate, Mumbai
33295 Answers
219 Consultations

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