Maharashtra Co-operative Housing Society Act Bye law queries and answers on Redevelopment

IS OWNERS CONSENT ESSENTIAL FOR REDEVELOPMENT?
Can tenants redevelop the property without the owner?
–Umang Patel, Ghatkopar (E)
Redevelopment can be done with the consent of the owners only. If the owner is not available and the building is in a dilapidated condition, a petition can be filed before the competent court against the land owner who is neglecting the repairs the builder or does not take any step towards redevelopment. In case the court gives a favourable order, the tenants can proceed with the redevelopment.

WHO IS RESPONSIBLE FOR MAINTAINING SOCIETY ACCOUNTS?
Society accounts are not properly maintained. Who should be made accountable?
–Anita L, Bandra (E)
It is the responsibility of the Managing Committee to maintain the accounts properly. In case the same is not maintained, the complaint can be filed before the Deputy Registrar who will conduct the enquiry and fix the responsibility. In case any fraud is noticed, each and every committee member will be jointly and severally responsible to make good the loss. Therefore, all committee members are required to sign the Indemnity Bond in form M-20 on a stamp paper of Rs.100.

SUPREME COURT DECISION ON PRIVATE FOREST LAND IS STILL PENDING
Our society is under private forest land & we are waiting for Supreme Court judgment. If verdict is delayed what should be done?
–Satish Sharma, Mulund
No action will be taken by any Authority till the matter is decided by the Supreme Court. Therefore, you have to represent before the Supreme Court properly and get the favourable order.

CAN A SOCIETY AVOID THE OPEN TENDER PROCESS AND GO FOR CLOSE TENDER?
Our society doesn't go in for an open tender but they opted for closed tender instead. Is it legally valid? Can society ask for security deposit in escrow account instead of Bank guarantee?
–P. R. Sugathan,
Nerul Navi Mumbai
Open tender means the tenders are invited by giving proper public notice and any person who fulfills certain conditions mentioned in the tender is allowed to file the Tender. When the Tenders are invited they have to be closed and sealed. The same will be opened in the presence of the members of the society, Project Management consultants. In case you mean to say that the tenders should be accepted by the society in open form and any member is allowed see and evaluate before receipt of all the tenders is not a proper system. In case you mean to say that the society has opted for closed tender means within the closed circle or from the selected developers, that system is wrong. It has to be called through public notice only. The society can definitely ask for the deposit in the Escrow account. It is the terms and conditions mentioned in the tender documents, which are most important.

IS IT POSSIBLE TO do REDEVELOPMENT WITHOUT GETTING CONVEYANCE?
Can we go for redevelopment without taking conveyance and agreement?
–Naresh, Vashi Naka
As per the Government Notification dated 3rd January, 2009, the appointment of developer or builder can be done only after obtaining the Conveyance of land and building in favour of the society. However, you can appoint a Project Management Consultant to procure the Conveyance of land and building and thereafter the same Project Management Consultant can proceed to prepare a feasibility report, Tender and invite the tenders etc. Before conveyance appointing a developer is not only bad in law but also invite unnecessary disputes with the old land owner, old builder, new builder etc.

IS THE LOTTERY ALLOTMENT SYSTEM NECESSARY IN REDEVELOPMENT?
Can society opt for reconstruction instead of redevelopment? Why there is lottery system when members get a new flat and why is there no choice?
–Harish Thalker, Santacruz (E)
There is no difference between Redevelopment or Reconstruction. The Redevelopment or reconstruction can be done by the society themselves which is know as Self Redevelopment/ Self Reconstruction and if the same is given to the Developer or the Builder the same is known as Redevelopment through the Builder. The allotment of the flat in the new building can be done by various methods. One of the methods is by lottery system. Depending on the number of members and the issues involved, the allotment of the flats can be decided in the General Body meeting of the society as per the majority decision in consultation with Project Management Consultants (PMC).

WHY DOES REDEVELOPMENT PROCESS TYPICALLY GET DELAYED?
Is there a law about control in redevelopment? What are the general problems for delaying redevelopment?
–P. T. Mathew, Kalina
There was no provision or guidelines earlier in the process of Redevelopment. Now, the Government has issued a notification u/s 79A of the Maharashtra Co-operative Societies Act, 1960 laying down the procedure to carryout the redevelopment of the society. This circular is mandatory in nature and is the law of the land. All the housing societies have to follow the same, otherwise, the committee members will be personally held responsible for any loss that incurs to the society for not following the procedures. There are many reasons for delay in redevelopment work. The major problem is the consent from the members and then not following up the proper laid down procedures. Certain developers also take undue advantage of the ignorance of the society members and agree to undertake the Redevelopment if the conveyance is not available, the approved plans of the old building not available etc.