Rights of Redevelopment

(i) Open Plot Societies

The Title To The Land Vests In The Society, The Development Rights Also Belong To The Society And The Consideration For Transfer Of Redevelopment Rights Belong To The Society. Hence, The Unutilized FSI Belong To The Society And Not To The Members. [Ref. Ramesh H Shah V. Hasmukh J.Joshi – Air 1975 S. C.1470]

(ii) Flat Owners Societies

The Purchaser Of Flats Get A Title To The Flats And Undivided Interest Proportionate To The Area Of Their Flat In The Land Form The Builder And Continues To Hold Such Ownership Rights Even After Formation Of The Society. The Position Of Society In Such An Arrangement Is That Of A Trustee Holding Property For The Benefit Of Members In Accordance With The Provisions Of The Act Rules And The Bye-Laws. The Redevelopment Rights Lie With The Members Collectively And Are To Be Executed Through The Managing Committee Within The Frame Work Of The Act, Rules And Bye-Laws Of The Society And The Directives Of The Government.

(iii) Tenant Societies

There Are Two Views:

(a)     The Society Is The Owner Of Both Land And Building And, Therefore, It Alone Has Power To Grant Redevelopment Rights And To Receive Consideration Thereof.

(b)    The Members Are the Owners of the Land and Building’s as the Society Is Only a Compendium of Its Members. The Redevelopment Rights Lie With The Members Collectively And Are To Be Executed Through The Managing Committee Within The Frame Work Of The Act, Rules And Bye-Laws Of The Society.

(iv) Housing Board Societies:

The Land Originally Belongs To The Board Which Has Given It On Lease To The Society Hence The Society Can Redevelop Its Building During The Period Of The Lease.

In Any Case, In All Types Of Housing Societies The Members Have To Act Collectively Through Their Managing Committees Within The Frame Work Of Act, Rules And Bye-Laws Of The Societies And As Per The Directive Of The Government. There Will Be Some Difference Regarding Taxation Which We Will Examine At A Later Stage.