Redevelopment query
SSK_2019_DEV
(Querist) 19 December 2019
This query is : Resolved
Hi,
Our building is considering to go in for Redevelopment, but members are not willing to folllow 79A process and are trying to bring their own developers. Many of these developers who are coming are unregistered, we could not find their entries on searching for registered companies on Ministry of Corporate Affairs website. I wanted to know 2 things
1. Is it a must that 79A process should be followed for redevelopment
2. What is the risk of going with an unregistered company for redevelopment
Thank you
SHIRISH PAWAR, 7738990900
(Expert) 19 December 2019
Dear sir,
These are new directives issued and you have to comply with it. And it is always better to appoint builder with good credentials.
Regards,
Sb Karma
(Expert) 19 December 2019
1) Yes it i...and you can also see there RERA registration...it will be there.
2) Risk is unlimited......... anything can happen,may be they stop build......and left work,,,may be fund shortage...etc.
Raj Kumar Makkad
(Expert) 19 December 2019
Registration of the developer with Ministry of Corporate Affairs is not necessary rather its registration under RERA is mandatory. Once it is ensured by way of getting his certificate verified from the issuing authority, you future risk gets minimized.
There can;t be any limit of risks. Otherwise also we reply here against the prevailing problem and can;t presume future problem and accordingly never waste our limited time for presumptions.
Sankaranarayanan
(Expert) 20 December 2019
If members are not willing to follow the procedures the all face the consequences in futures
Hemant Agarwal
(Expert) 20 December 2019
1. Directives issued u/s 79A, by the Coop. Dept., are not mandatory, as upheld by Bombay HC. Hence following this Directives is optional, BUT definitely prudent for the Society members.
2. However Builders /Developers should be appointed ONLY on due recommendations of a Society appointed Project Management Consultant (PMC) (a registered architect), after inviting quotations from minimum Three Builders /Developers.
3. The entire project carries a risk of failure or say lying dormant for years together, on appointment of Fly-by-Night type Builders /Developers, by Society members who are myopically apathetic & chronically greedy penny-pinchers. There are many such incidences in Mumbai district.
Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com
T. Kalaiselvan, Advocate
(Expert) 28 December 2019
Redevelopment of housing societies is usually burdened with bitterness and complaints of high-handedness and corruption against the Managing Committee. Hence, with a view to ensure transparency in societies seeking to undertake redevelopment projects, the state co-operative department has, for the first time, issued guidelines for societies to follow under section 79 (A) of the Maharashtra Co-operatives act, 1960.
The guidelines are issued by a committee comprising the co-operatives commissioner and Cidco chairman pursuant to a deep study of complaints by members of Housing Societies undertaking the redevelopment of their property. According to an important feature in the guidelines, a redevelopment scheme has to be approved by the general body only if three-fourths of the society members are present at the meeting.
The special general body has to approve the bid of the successful bidder in a meeting attended by the registrar. The entire proceedings have to be video-recorded. Once the agreement is accepted in terms of area and corpus fund, it cannot be revised. The successful bidder has to give a bank guarantee equivalent to 20% of the total project cost to show his financial strength, and proof that he will not throw away the project midway.
The Developer has to complete the redevelopment project in two years, or a maximum of three years. The development agreement must be signed on carpet-area basis. Most importantly, if, for some reason, the successful Developer is unable to complete the project, he cannot sell his agreement to another Developer.
Dr J C Vashista
(Expert) 30 December 2019
The author has not posted what type of building is there for redevelopment, i.e., whether it is a cooperative society, apartment, private building to find out the law applicable.
Where is the subject property located as local laws apply, which can not be presumed under Section 79A (which Act) law ?
Presumption of facts can not lead to form an opinion and advise.
You should consult and engage a local prudent lawyer to appreciate facts, advise professionally and proceed.
