Tuesday, December 14, 2010

CAN MORE AREA BE GIVEN IN REDEVELOPMENT AFTER SIGNING AGREEMENT?

CAN MORE AREA BE GIVEN IN REDEVELOPMENT AFTER SIGNING AGREEMENT?
Our building is in the process of redevelopment since December 2008 and the builder has given us 225 sft CA as per the agreement signed by him with existing tenants. But during the construction, the builder has offered extra area by including some area near window of the kitchen and living room in exchange of huge amount. Is it legal to include such area without any new agreement or can I include such area after the possession?
–Name withheld on request

The builder and the members will have to strictly adhere to the building plan sanctioned by the local authority i.e. Municipal Corporation Greater Mumbai and inclusion of any extra area within the constructed area in contravention of such plan would amount to unauthorized construction liable to be demolished by the Municipal Corporation. 
Therefore, neither the builder nor you can include such an area within the sanctioned built-up area, without having the revised building plan approved by the Municipal Corporation.



CAN A SOCIETY AUGMENT INCOME WITHOUT NOC FROM PLOT OWNERS?

Our society building is on a lease-hold plot for a term of 99 years with automatic renewal clause for another term of 99 years. But since last over 14 years the owners of the plot have not executed the Lease Agreement, though the draft has already been approved in the AGM of the society. Please let us know whether a lease for a term of 99 + 99 years, after execution of lease deed, is as good as full and free ownership of the land by the society. Whether the society can augment its dwindling financial resources by putting up hoardings, ATMs etc. within the compound in the absence of lease agreement and NOC from the plot owners.
–U.K.Hitesh

A lease-hold land shall always remain lease-hold irrespective of the term, unless it is converted into a free-hold and, therefore, the plot of your society shall remain as a lease-hold plot on the execution of the lease for a term of 99 years, with the automatic renewal clause for another term of 99 years. The society shall be bound by all the terms and conditions of the lease and breach of any term or condition may give rise to the cancellation of the lease and the right of re-entry to the plot owners. If there is a condition of prior permission of the owner of the land in the lease for putting up the hoarding or ATM in the open compound, NOC from the land owner will be necessary, in addition to the previous permission of the local authority, if provided in the rules. After obtaining all these permissions, hoarding or the ATM etc. may be permitted by the society with the approval of the general body and on the terms and conditions, as may be decided in the general body meeting of the society.

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