Cluster redevelopment under 33(9)
Querist :
Anonymous
(Querist) 30 August 2024
This query is : Resolved
I have a restaurant business for the past 30 years and the members of the society have opted for redevelopment. The builder has presented his offer letter. What do I need to keep in mind while agreeing for redevelopment espcially for a running business?
T. Kalaiselvan, Advocate
(Expert) 30 August 2024
Always appoint a lawyer before signing any contract with a builder. A comparative chart is usually prepared for the selection of a builder, which contains elements like technical capability, experience, financial status, quality of construction and successful completion of projects. The best way to go about this is by a tendering system. Once drawn up and looked over by a competent attorney, the contract should mention the obligations of the builder and the society and appropriate penalties in case of a breach of contract.
It is crucial that the project is covered under the Real Estate (Regulation and Development) Act, 2016 (RERA). Ensure that the project timelines and details are updated on the RERA website promptly and accurately.
Builders often violate the rules of the Floor Space Index (FSI) by unlawful planning and constructing additional areas beyond their entitlement and authority.
The developer is obligated to give a security deposit to the members of the society equaling the entire cost of redevelopment. Ensure that the point is mentioned and agreed upon and duly documented.
Remember that the developer is responsible for giving alternative accommodation to the society members, usually in the same area. Members can also seek the cost of shifting from the developer.
