Friday, December 30, 2011
Monday, December 19, 2011
What Is Importance Of Indemnity Bond
Bond required to be executed by the members of the Managing Committee of the Co-operative Housing Societies within 45 days from the date of their assuming the office whichever is earlier, under the Maharashtra Co-operative Societies Act 1960.
The provision is important because if the bond is not executed within 45 days from the date of their assuming the office whichever is earlier or if the member fails to execute the bond he shall be deemed to have vacated his office as a member of the Managing Committee.
Now what happens to many housing societies, where Managing Committees are unaware, ignorant or have simply ignored or not bothered about the bond? In such cases, according to Registrar’s office “we offer to disband the committee and call for fresh elections”
The member who fails to execute such a bond within the specified period shall be deemed to have vacated his office as a member of the committee. Bombay High Court too has upheld this provision of MCS Act.
Attention is also invited to the Bye-law no 136 of the old Model bye-laws and bye-law no 138 of the new Model bye-laws which lay down as under:
"The members of the Committee shall be jointly and severally liable for making good any loss which the society may suffer on account of their negligence or omission to perform any of the duties and functions cast on them under the Act, Rules and Bye-laws of the Society."
In addition to the above bye-laws, an amendment was inserted by Mah. 41 of 2000, S. 3 of the amending Act (w.e.f. 23-8-2000) to Section 73 by introducing Section (1AB) to the Maharashtra Co-operative Societies Act 1960. Similarly Rule 58-A was inserted by G.N. of 18-2-2002 in the Maharashtra Co-operative Societies Rules, 1961 and Form M-20 was also inserted by G.N. of 18-2-2002.
Section 73(1AB) of the Maharashtra Co-operative Societies Act 1960 is reproduced below:
"The Members of the Committee shall be jointly and severally responsible for all the decisions taken by the committee during its term relating to the business of the society. The members of the committee shall be jointly and severally responsible for all the acts and omissions detrimental to the interest of the society. Every such member shall execute a bond to that effect within fifteen days of his assuming the office, in the form as specified by the State Government by general or special order.
The member, who fails to execute such bond within the specified period i.e. within fifteen days from joining the Managing Committee member, shall be deemed to have vacated his office as a member of the committee."
Further, the power to decide whether the losses incurred by the society are due to act or omissions of members of the committee is given to the Registrar
"Provided that, before fixing any responsibility mentioned above, the Registrar shall inspect the records of the society and decide as to whether the losses incurred by the society are on account of acts or omissions on the part of the members of the committee or on account of any natural calamities, accident or any circumstances beyond the control of such members."
Rule 58-A of the Maharashtra Co-operative Societies Rules 1961 is reproduced below:
"Every elected member of the Managing Committee shall execute a bond in Form M-20 within fifteen days of his assuming the office. Such bond shall be executed on the stamp paper as provided under the Bombay Stamp Act 1958. The expenditure on stamp paper shall be borne by the society. The Chief Executive Officer / secretary of the society shall receive such bonds and keep them on record of the society and accordingly inform the Registrar within Fifteen days from the formation of the Committee."
It is clear from above that the bond must be executed within fifteen days of assuming of office by each member of the Managing Committee in Form M-20 on a stamp paper. Failure will invite penal consequences.
Indemnity bond m20 format
Indemnity bond m20 format
I, Shri. ....................................... age xxx resident of ....................
has been elected on the Managing Committee of ''''''''' Co-Op. Hsg. Society Ltd,
......................................................... for the period .
I have assumed office from
I declare today i.e. ............... that I shall be jointly and severally responsible for
all the decisions taken by the committee during its term relating to the business of theSociety and shall be jointly and severally responsible for the acts and omissions
detrimental to the interest of the Society, as provided in section 73(1AB) of the Act.
( Signature)
Managing Committee Member
Date:
Place:
Signature of witness :
Hon. Chairman/Hon.Secretary
Friday, December 16, 2011
Advantages Of Tendering
ADVANTAGES OF TENDERING
v As advertisement is given in 3 prominent newspapers society will get good offers from reputed developers.
v As offers are invited in a sealed tender form, there is a severe competition among the bidders.
v As all the specifications and terms and conditions are same for all the bidders, it becomes easy for comparison and evaluation.
v Earnest Money Deposit in the form of PAY ORDER payable to the society is taken from each and every bidder so that unwanted or non interested parties do not bid for the work
v Mode of measurement of carpet area and person who will certify the same is clearly defined.
v Entire redevelopment proposal to be done in society’s name making it safer for society in case of any problems faced by developer.
v Right to change and or remove developer stays with the society.
v As all the details pertaining to commercial terms such as Bank Guarantee, temporary accommodation, cost of additional area etc is clearly defined the chances of ambiguity and disputes are virtually non-existent.
v Detailed technical methodology of work is laid out in the tender document under the head of technical specification.
v Basic rates are mentioned in the tender document enabling members to change any specification for their individual uses.
v Right to check amendments of plans during the progress of work is kept with the society.
v Material to be used is spelt out with brand names to avoid any confusion.
v As all the items are defined clearly the chances of getting realistic offer are excellent.
v Consequences of delay are defined in tender document.
v Tender is a legally binding document.
v Bye Law No 158 recommends need of tender document for construction of building.
After a proper feasibility report is submitted, the next step in the process of Redevelopment of any society is the most important one, viz: Selection of the PERFECT DEVELOPER, who will meet all the needs of the society, and at the same time be financially stable, and having a lot of experience of Redevelopment because unrealistic offers can often lead to redevelopment projects being stalled and leave residents in a fix.
This is achieved by the process of tendering, wherein the PROJECT MANAGEMENT CONSULTANT will float a tender document containing all the Legal, Technical, and Commercial & Other important Terms & Conditions, whereby maximum safety of the society members is ensured, as they are parting with their life's most valuable possession.... their house, in the hands of a perfect stranger.
Friday, December 9, 2011
Consent Letter For Redevelopment
Dear Sirs,
Sub: Re-development of property of ____________ CHS Ltd. Situated at ____________bearing Survey Number __________ CTS No____________
I am registered member of Co-operative Housing Society named as _____________ (herein after referred to as the “Said Society) entitled to and occupying a residential Flat bearing No.____ admeasuring total carpet area ______sq. ft (hereinafter referred to as the “Said Flat”) in the building known as _________________ situated at_______________
The Said Society is registered with the Register of Co-operative Societies vide its registration number __________ of (Year) at Mumbai. I further state that I am holding ___________ shares of Rs. ______/- each bearing distinctive Nos._______ to ________ (both inclusive) under Certificate No.___________ dated ____________ issued by the Said Society.
In accordance with the directive under Section 79(A) of Maharashtra Co-operative Societies Act 1960 issued to all the Co-operative Housing Societies in the State of Maharashtra regarding redevelopment of buildings of Co-operative Housing Societies as contained in their circular no. CHS 2007/CR554/14-C dated 3rd January 2009, the said Society, unanimously resolved in its Special General Body Meeting held on ________________that as per the completed formalities of tendering system, M/s _____________ has been shortlisted to assign the redevelopment of the existing old residential building of the Society and will construct new residential building.
Accordingly, I hereby give my irrevocable consent for redevelopment of the captioned property to be redeveloped by M/s_____________ (herein after referred to as the “Said Developer) in accordance with the present rules and regulations of MMRDA and as per the Development Control Regulations of Mumbai Municipal Corporation.
I hereby undertake to shift to an alternate accommodation from the date the said Developer intimates to the said Society and the said Society intimates to me for vacating the building to be handed over to the said Developer for demolition and for the purpose of constructing a new residential building on the property of the said Society.
If the said Developer fails or defaults in maintenance and/or compliance or violates any of the terms and conditions of the Development Agreement proposed to be executed with the said Society, I shall have full rights to redress my grievances and file a case against the said Developer (which expression shall unless it be repugnant to the context and meaning thereof be deemed to mean and include his heirs, executors, administrators and assigns).
I hereby willingly and without any coercion, through this irrevocable consent letter convey and undertake to co-operate with the society, the Developer and /or any other body statutory or otherwise for the purpose of redevelopment of our building and for that purpose I am irrevocably consenting for the demolishment and reconstruction of a new building and am willing to handover the vacant and peaceful possession of my flat bearing number …… on the …….floor of the Said Society or the re-construction.
I hereby undertake that I am agreeable to the Society appointing the Chairman and Secretary to represent me in all matters concerning the re-development project. I hereby state that I will be bound by the decisions taken in accordance with the directive under Section 79(A) of Maharashtra Co-operative Societies Act 1960 issued to all the Co-operative Housing Societies in the State of Maharashtra regarding redevelopment of buildings of Co-operative Housing Societies as contained in their circular no. CHS 2007/CR554/14-C dated 3rd January 2009.
I further undertake not raise any objection to the agreed terms and conditions of re-development finalized which will be binding on me and/or my legal heirs, assignees, successors etc. I hereby declare and confirm with the Developer as follows:
a. I have purchase the above referred flat on my own and the same is self acquired property and no other person has any nature whatsoever in the above referred flat.
b. I have not done/shall not do any act, whereby the Developer may be prevented from entering into the Development Agreement with the Society whereby the right, title and interest of the Developer mentioned under Development Agreement and/or any other document given by the Society to the Developer for re-development.
c. I have not made any commitment for sale/transfer of the above flat nor is prevented by any order or injunction of any court or authority or tribunal from transferring the said entitlement to the Developer.
d. The irrevocable consent given through this letter is unconditional and binding upon me subject to compliance of the terms and conditions of the Development Agreement as executed between the society and the Developer.
e. Subject to the aforementioned contents of this consent letter is binding upon me till the construction of the new building is complete and the Developer handovers the possession to all the members in the new residential building.
Dated this _________________ day of ____________________ 20
Signed/-
Name…………………..
Flat no:
In the presence of
Chairman (Mr.M/s.__________________________)
Secretary (Mr.M/s.__________________________)
(Seal of the Society)
Sub: Re-development of property of ____________ CHS Ltd. Situated at ____________bearing Survey Number __________ CTS No____________
I am registered member of Co-operative Housing Society named as _____________ (herein after referred to as the “Said Society) entitled to and occupying a residential Flat bearing No.____ admeasuring total carpet area ______sq. ft (hereinafter referred to as the “Said Flat”) in the building known as _________________ situated at_______________
The Said Society is registered with the Register of Co-operative Societies vide its registration number __________ of (Year) at Mumbai. I further state that I am holding ___________ shares of Rs. ______/- each bearing distinctive Nos._______ to ________ (both inclusive) under Certificate No.___________ dated ____________ issued by the Said Society.
In accordance with the directive under Section 79(A) of Maharashtra Co-operative Societies Act 1960 issued to all the Co-operative Housing Societies in the State of Maharashtra regarding redevelopment of buildings of Co-operative Housing Societies as contained in their circular no. CHS 2007/CR554/14-C dated 3rd January 2009, the said Society, unanimously resolved in its Special General Body Meeting held on ________________that as per the completed formalities of tendering system, M/s _____________ has been shortlisted to assign the redevelopment of the existing old residential building of the Society and will construct new residential building.
Accordingly, I hereby give my irrevocable consent for redevelopment of the captioned property to be redeveloped by M/s_____________ (herein after referred to as the “Said Developer) in accordance with the present rules and regulations of MMRDA and as per the Development Control Regulations of Mumbai Municipal Corporation.
I hereby undertake to shift to an alternate accommodation from the date the said Developer intimates to the said Society and the said Society intimates to me for vacating the building to be handed over to the said Developer for demolition and for the purpose of constructing a new residential building on the property of the said Society.
If the said Developer fails or defaults in maintenance and/or compliance or violates any of the terms and conditions of the Development Agreement proposed to be executed with the said Society, I shall have full rights to redress my grievances and file a case against the said Developer (which expression shall unless it be repugnant to the context and meaning thereof be deemed to mean and include his heirs, executors, administrators and assigns).
I hereby willingly and without any coercion, through this irrevocable consent letter convey and undertake to co-operate with the society, the Developer and /or any other body statutory or otherwise for the purpose of redevelopment of our building and for that purpose I am irrevocably consenting for the demolishment and reconstruction of a new building and am willing to handover the vacant and peaceful possession of my flat bearing number …… on the …….floor of the Said Society or the re-construction.
I hereby undertake that I am agreeable to the Society appointing the Chairman and Secretary to represent me in all matters concerning the re-development project. I hereby state that I will be bound by the decisions taken in accordance with the directive under Section 79(A) of Maharashtra Co-operative Societies Act 1960 issued to all the Co-operative Housing Societies in the State of Maharashtra regarding redevelopment of buildings of Co-operative Housing Societies as contained in their circular no. CHS 2007/CR554/14-C dated 3rd January 2009.
I further undertake not raise any objection to the agreed terms and conditions of re-development finalized which will be binding on me and/or my legal heirs, assignees, successors etc. I hereby declare and confirm with the Developer as follows:
a. I have purchase the above referred flat on my own and the same is self acquired property and no other person has any nature whatsoever in the above referred flat.
b. I have not done/shall not do any act, whereby the Developer may be prevented from entering into the Development Agreement with the Society whereby the right, title and interest of the Developer mentioned under Development Agreement and/or any other document given by the Society to the Developer for re-development.
c. I have not made any commitment for sale/transfer of the above flat nor is prevented by any order or injunction of any court or authority or tribunal from transferring the said entitlement to the Developer.
d. The irrevocable consent given through this letter is unconditional and binding upon me subject to compliance of the terms and conditions of the Development Agreement as executed between the society and the Developer.
e. Subject to the aforementioned contents of this consent letter is binding upon me till the construction of the new building is complete and the Developer handovers the possession to all the members in the new residential building.
Dated this _________________ day of ____________________ 20
Signed/-
Name…………………..
Flat no:
In the presence of
Chairman (Mr.M/s.__________________________)
Secretary (Mr.M/s.__________________________)
(Seal of the Society)
Thursday, December 1, 2011
Redevelopment: Broader perspective From Mr. Mahendra Sawant
From The Desk Of Mr. Mahendra Sawant.( B.E-Civil, D.C.E, Masters In Construction Management)
REDEVELOPMENT PROCEDURE OF SOCIETIES IN MUMBAI
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.
It has been often noticed that during the process of redevelopment, the terms of Development Agreements as agreed upon, are later twisted and grossly violated by the Developers and the ground rules of MRTP and DCR by unlawful planning are flouted by constructing additional/unauthorized areas that are beyond the entitlement (i.e. beyond the plot FSI and the TDR/FSI loaded) for their hidden financial gains. The buyers of such unlawful flats/properties land themselves in deals that lead to litigation at a later date.
At times, upon the completion of the Project, there are major inconsistencies and discriminatory features noticed in the approved plans v/s actual layouts, measurements and other aspects in respect of the constructions of residential area and the commercial area which may not be in conformity with the Development Agreement originally executed between the Society and the Developer.
Under Right to Information Act, the Housing Society can procure all the Plans and the related documentary evidences from MCGM duly attested by two Senior Engineers of the Building Proposals Dept. to study the anomalies which exist in execution of the entire redevelopment project even after the occupancy certificate is issued.
It has also been observed that the deviation of vital Rules and Guidelines of MRTP/MCGM/DCR are conveniently overlooked by few corrupt and dishonest but “Sympathetic Officials” of MCGM and the final plans with numerous anomalies so submitted by the said Developer are approved by them without verifying the justifiability or its conformity with the Development Agreement executed with the Society.
Further, it is learnt that in many Societies, the Managing Committees, who execute the documents with the Developers, do not possess any legal holding as they have never filed/nor aware of filing the Indemnity Bond in Form M-20 on a Stamp required under Section 73(1AB) and Rule 58A of the Maharashtra Cooperative Societies Act 1960.
The members who fail to execute such Bonds within the specific period are deemed to have vacated his office as a member of the committee and no legal effects can be given to the documents executed by them with the Developers.
STAGES OF REDEVELOPMENT
1. Offer letter to the society
2. Terms and conditions with the society
3. Agreement with the society
4. Sanction from MCGM in favour of the society
5. Loading of TDR in the society’s name
6. Obtaining the IOD
7. Shifting of the members
8. Demolition of the building
9. Obtaining the CC
10. Construction of the new building
11. Obtaining the OC
12. Shifting the old members
Offer letter to the society: The Housing Society is required to advertize in 2 leading news papers inviting the sealed tenders from the Developers and a Redevelopment Committee is formed to shortlist atleast 3 Developers on merits and the comparative data is placed before the SPGM for final selection. The selected Developer is informed accordingly and his terms are invited in writing as an Offer letter to the society
Terms and conditions with the society: The first step towards the re-development is agreeing on the basic terms and conditions between the members and the Developer. The broad terms and conditions will include extra area, corpus money, shifting charges, alternate accommodation, time of re-development, amenities in the new building, etc.
Finalizing the plans with members: After due consultation with all the members, the plan will be made to suit the requirements of the existing members and will be approved by them before applying for sanction from MCGM
Agreement with the society: The execution of the development agreement will be done once the above two points have been cleared by both the parties and after the draft copy of the agreement have been approved by the solicitors of both the parties. It is possible to appoint a common solicitor so as to reduce the time in execution of the document
Sanction from MCGM in favour of the society: After the execution of the development agreement, plans are put up for sanction from MCGM with regards to the entire layout as well as the concession plans in favour of TWO FSI (i.e. plot area + TDR purchased from open market). This step makes the society feel safe and confident towards the Develop
Loading of TDR in favour of the society: On receipt of the plans from MCGM approving the loading of TDR, the Developer will purchase the TDR from the open market in the name of the society and get the same deducted and loaded from MCGM. This step is taken with the intention of making the society feel secure about the entire development process
Obtaining the IOD: After the TDR is loaded, the IOD is obtained from the MCGM, the Developer then starts fulfilling all the conditions as mentioned in the IOD before obtaining the Commence Certificat
Shifting of the members: The members will feel lot more confident after the IOD is been obtained from the MCGM towards the entire development of TWO FSI. The members will now shift into their alternate accommodation as a pre-requisite before demolition of the building which is a must before obtaining the CC from MCGM
Demolition of the building: Once the members have shifted into their alternate accommodation, the demolition of the building will take place either all the wings simultaneously or phase wise depending upon the scheme of re-development. Usually about three months are given to the members from the date of execution of the development agreement before asking them to shift to the alternate accommodation
Obtaining the CC: The IOD approval and demolition of the building will be followed by the issue of the CC (plinth level) by the MCGM which shall enable the Developer to start the construction work and after the plinth lines are verified by the MCGM officers, the further CC is granted for the complete building
Construction of the building: The building construction work will began in full earnest as per the approved plans by the MCGM taking into consideration the various safety factors to be considered during the construction work. The quality and the amenities will be provided as per agreed terms and conditions
Obtaining the OC: The last step before the construction work is termed as complete is obtaining the Occupation Certificate enabling the Developer to allot the occupation to the old as well as the new member
Shifting the old members: On receipt of the Occupancy Certificate the Developer can lawfully allow the possession of the flats to be taken over by their owners
DUTIES AND FUNCTIONS OF THE DEVELOPER
1. The Developer to demolish the building existing in the plot and construct new multi storied buildings taking into account the earthquake resistant factors as directed by The Municipal Corporation of Greater Mumbai. The new building should have stilt for car parking and should consist of _____ stories as per approved plans. The final plans are to be prepared after due consultation with the managing committee and understanding their requirements.
2. The Developer shall be responsible to obtain all the necessary approvals from The Municipal Corporation of Greater Mumbai and all other statutory and Government offices and departments which will include:
1.Development Planning Remark or Town Planning Remark: MCGM (Dev. Dept.)
2. Survey of the entire plot with regards to the area and topography of the
plot,
existing plot boundary and existing structures (Developer’s Architect)
3.Intimation of Disapproval (IOD): MCGM
4.Property Tax Assessment NOC: MCGM (Assessment Department)
5.Hydraulic Engineer No Objection Certificate: MCGM (Hydraulic Department)
6.Storm Water Drainage No Objection Certificate: MCGM
7.Sewerage No Objection Certificate: MCGM
8.Traffic Deptt. of Municipal Corporation of Greater Mumbai No Objection Certificate:
MCGM
9.Urban Land Ceiling NOC: Competent Authority in Collector's Office
10. Tree No Objection Certificate: MCGM (Tree Authority)
11.Non-Agricultural Permission: Collector's Office
12.Civil Aviation No Objection Certificate: Airport Authority of India
13.Pest Control No Objection Certificate: MCGM (PCO)
14.MTNL No Objection Certificate: MTNL
15.Chief Fire Officer's No Objection Certificate: Fire Department Office
16.Commencement Certificate: MCGM
17. Lift Inspection No Objection Certificate:Inspector of Lifts, PW
18. Occupation Certificate (OC):MCGM
19.Water Connection Certificate under section 270A:MCGM
20.Drainage Completion Certificate:MCGM (Water Department)
21.Building Completion Certificate (BCC):MCGM
22.TDR Loading:MCGM
23.Building Demolition Work:Contractor appointed for demolition work
24.Soil Testing Report:The Concerned Laboratory
Please ensure to collect all the listed certificates from the Developer/Developer as the same must be with the custody of the Housing Society once the redevelopment of the property is completed and the occupancy certificate is issued by MCGM to rehouse the members.
3. The Developer should provide the following infrastructure after the completion of the re-development work:
a. Complete paving around the building finished with suitable materials
b. Storm Water Drain
c. Sewerage lines
d. Security arrangements
e. Garden and landscaping (wherever possible)
f. Pipe gas line (as per availability)
g. Internet facility (as per availability)
h. Society office
i. Adequate car parking spaces
The Developer has to provide extra areaover and above the existing carpet area to all the members free of cost in the newly constructed building. The flower bed as open balcony area should be provided as permitted by The Municipal Corporation of Greater Mumbai. (Area will be approx sq.fts.)
4.The Developer should pay the society/individual member, a corpus fund of Rs……..towards granting of development rights. The above amount is helpful in paying all outgoings of the existing members in the newly constructed flats. The corpus amount is worked out on the basis of Rs……..per sq.fts on the existing carpet area.
5.The Developer should provide displacement compensation towards temporary alternate accommodation to the affected members during the construction work at the rate of Rs…… per sq.ftson the existing carpet area. The compensation has to be paid from the time the vacant possession is given by the members for demolition till the construction of the new building/s is/are complete and the peaceful possession of the new flats given by the Developer.
6.The society shall accept and admit the prospective/additional flat owners of the newly constructed building/s as members of the society and treat them at par with existing members.
7.The Developer should prepare a tentative layout of the new building which has to be shown to the members as and when required.
8.The Developer may tie up with leading financial institutions and banks and arrange for necessary approvals for housing loans for the existing members and prospective clients.
9.The Developer should complete the entire re-development work within a period of ___ months or as agreed with the Society after all the legal formalities and Municipal approvals are obtained. The initial Municipal approvals will take about three months depending upon the existing rules and regulations governing the re-development work.
STANDARD LIST OF AMEMITIES
Structure:The structure would be designed as Multi Frame Structure of RRC with provisions of Earth Quake resistance features.
Elevation and Planning:Exquisitely designed elevation features may be provided along with careful and detailed planning with plenty of light and ventilation in each rooms and minimum wastage space with proper co-ordination of all rooms. The building may be provided with sand faced plaster on the external face water proofing plaster and chicken mesh should be used as required
Entrance Lobby:The entrance lobby may be elegantly designed with Granite tile and POP false ceiling.
Doors: All the doors should be provided with Marine Flush Doors and CP frame with cover mouldings. The main door must be provided with good quality night latch, safety chain, tower blot and attractive handle. Internal doors may be provided by cylindrical mortise type locks.
Windows:All the windows of rooms and toilets should be provided with marbles frames with designed mouldings. Heavy section powered aluminum sliding windows with 5 mm tinted glass may be provided with imported bearings and fittings.
Plaster of Paris:Beautifully designed cornice has to be provided in living room. Walls of all the rooms to be finished with POP panning and grooves to be provided on top of the skirting
Electric work:All the electric wiring work must be done as per the norms of Reliance Energy using 1/18, 3/20, and 7/20 flexible wires with use of MCB and ELCB for safety of the flat owners. Latest available switches of reputed company must be provided. Extensive electric layout comprising of the following points to be provided:
Spot Lights (living room and bed room)
Tube lights
Fans
A.C. (living room and bed room)
Geysers
Exhaust fans
Aqua guard
Mixers
Washing machine
Refrigerator
T.V. cable
Gas pipe line (if available)
Refrigerator
T.V. cable
Gas pipe line (if available)
Plumbing:All the plumbing pipes, fixtures and fittings should be strictly as per IS Norms. CP plumbing fixtures (ESS ESS or JAGUAR) should be be provided in all toilets with matching sanitary ware of reputed company. Plumbing points should comprise of wall mixtures, showers, taps, washing machines and aqua guard.
Flooring and Tiling: Marble or granite or granite flooring should be provided with matching skirting of 3”. Toilets should have full dado height of coloured glaze tiles of reputed company of Indian or imported make with designer borders and motifs.
Kitchen:Granite kitchen platform comprising of cooking and serving platforms may be provided with moulded facia patti and vertical sides. Stainless steel sink has to be provided.
Colour:The entire flat should be painted with Synthetic enamel paint including doors and ceilings. The external walls of the buildings must be painted with good quality cement paint.
Lift:Lift of OTIS/Johnson make may be provided with all the safety features.
Terrace: The terrace should be finished with china chips and high parapet wall with corner lights and water points.
Compound wall and gates: New compound wall should be constructed with proper design and sufficient electric points. M.S. main gate should be provided for safety.
Paving: The entire compound wall should be paved with concrete and finished with heavy duty checkered tiles.
The task of satisfactory completion of redevelopment of any Housing Society and to get back their members in their dream houses is not difficult provided the Office Bearers and the Committee Members are honest and justify their respective posts in the welfare and well being of the members of the Society.
REDEVELOPMENT PROCEDURE OF SOCIETIES IN MUMBAI
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.
It has been often noticed that during the process of redevelopment, the terms of Development Agreements as agreed upon, are later twisted and grossly violated by the Developers and the ground rules of MRTP and DCR by unlawful planning are flouted by constructing additional/unauthorized areas that are beyond the entitlement (i.e. beyond the plot FSI and the TDR/FSI loaded) for their hidden financial gains. The buyers of such unlawful flats/properties land themselves in deals that lead to litigation at a later date.
At times, upon the completion of the Project, there are major inconsistencies and discriminatory features noticed in the approved plans v/s actual layouts, measurements and other aspects in respect of the constructions of residential area and the commercial area which may not be in conformity with the Development Agreement originally executed between the Society and the Developer.
Under Right to Information Act, the Housing Society can procure all the Plans and the related documentary evidences from MCGM duly attested by two Senior Engineers of the Building Proposals Dept. to study the anomalies which exist in execution of the entire redevelopment project even after the occupancy certificate is issued.
It has also been observed that the deviation of vital Rules and Guidelines of MRTP/MCGM/DCR are conveniently overlooked by few corrupt and dishonest but “Sympathetic Officials” of MCGM and the final plans with numerous anomalies so submitted by the said Developer are approved by them without verifying the justifiability or its conformity with the Development Agreement executed with the Society.
Further, it is learnt that in many Societies, the Managing Committees, who execute the documents with the Developers, do not possess any legal holding as they have never filed/nor aware of filing the Indemnity Bond in Form M-20 on a Stamp required under Section 73(1AB) and Rule 58A of the Maharashtra Cooperative Societies Act 1960.
The members who fail to execute such Bonds within the specific period are deemed to have vacated his office as a member of the committee and no legal effects can be given to the documents executed by them with the Developers.
STAGES OF REDEVELOPMENT
1. Offer letter to the society
2. Terms and conditions with the society
3. Agreement with the society
4. Sanction from MCGM in favour of the society
5. Loading of TDR in the society’s name
6. Obtaining the IOD
7. Shifting of the members
8. Demolition of the building
9. Obtaining the CC
10. Construction of the new building
11. Obtaining the OC
12. Shifting the old members
Offer letter to the society: The Housing Society is required to advertize in 2 leading news papers inviting the sealed tenders from the Developers and a Redevelopment Committee is formed to shortlist atleast 3 Developers on merits and the comparative data is placed before the SPGM for final selection. The selected Developer is informed accordingly and his terms are invited in writing as an Offer letter to the society
Terms and conditions with the society: The first step towards the re-development is agreeing on the basic terms and conditions between the members and the Developer. The broad terms and conditions will include extra area, corpus money, shifting charges, alternate accommodation, time of re-development, amenities in the new building, etc.
Finalizing the plans with members: After due consultation with all the members, the plan will be made to suit the requirements of the existing members and will be approved by them before applying for sanction from MCGM
Agreement with the society: The execution of the development agreement will be done once the above two points have been cleared by both the parties and after the draft copy of the agreement have been approved by the solicitors of both the parties. It is possible to appoint a common solicitor so as to reduce the time in execution of the document
Sanction from MCGM in favour of the society: After the execution of the development agreement, plans are put up for sanction from MCGM with regards to the entire layout as well as the concession plans in favour of TWO FSI (i.e. plot area + TDR purchased from open market). This step makes the society feel safe and confident towards the Develop
Loading of TDR in favour of the society: On receipt of the plans from MCGM approving the loading of TDR, the Developer will purchase the TDR from the open market in the name of the society and get the same deducted and loaded from MCGM. This step is taken with the intention of making the society feel secure about the entire development process
Obtaining the IOD: After the TDR is loaded, the IOD is obtained from the MCGM, the Developer then starts fulfilling all the conditions as mentioned in the IOD before obtaining the Commence Certificat
Shifting of the members: The members will feel lot more confident after the IOD is been obtained from the MCGM towards the entire development of TWO FSI. The members will now shift into their alternate accommodation as a pre-requisite before demolition of the building which is a must before obtaining the CC from MCGM
Demolition of the building: Once the members have shifted into their alternate accommodation, the demolition of the building will take place either all the wings simultaneously or phase wise depending upon the scheme of re-development. Usually about three months are given to the members from the date of execution of the development agreement before asking them to shift to the alternate accommodation
Obtaining the CC: The IOD approval and demolition of the building will be followed by the issue of the CC (plinth level) by the MCGM which shall enable the Developer to start the construction work and after the plinth lines are verified by the MCGM officers, the further CC is granted for the complete building
Construction of the building: The building construction work will began in full earnest as per the approved plans by the MCGM taking into consideration the various safety factors to be considered during the construction work. The quality and the amenities will be provided as per agreed terms and conditions
Obtaining the OC: The last step before the construction work is termed as complete is obtaining the Occupation Certificate enabling the Developer to allot the occupation to the old as well as the new member
Shifting the old members: On receipt of the Occupancy Certificate the Developer can lawfully allow the possession of the flats to be taken over by their owners
DUTIES AND FUNCTIONS OF THE DEVELOPER
1. The Developer to demolish the building existing in the plot and construct new multi storied buildings taking into account the earthquake resistant factors as directed by The Municipal Corporation of Greater Mumbai. The new building should have stilt for car parking and should consist of _____ stories as per approved plans. The final plans are to be prepared after due consultation with the managing committee and understanding their requirements.
2. The Developer shall be responsible to obtain all the necessary approvals from The Municipal Corporation of Greater Mumbai and all other statutory and Government offices and departments which will include:
1.Development Planning Remark or Town Planning Remark: MCGM (Dev. Dept.)
2. Survey of the entire plot with regards to the area and topography of the
plot,
existing plot boundary and existing structures (Developer’s Architect)
3.Intimation of Disapproval (IOD): MCGM
4.Property Tax Assessment NOC: MCGM (Assessment Department)
5.Hydraulic Engineer No Objection Certificate: MCGM (Hydraulic Department)
6.Storm Water Drainage No Objection Certificate: MCGM
7.Sewerage No Objection Certificate: MCGM
8.Traffic Deptt. of Municipal Corporation of Greater Mumbai No Objection Certificate:
MCGM
9.Urban Land Ceiling NOC: Competent Authority in Collector's Office
10. Tree No Objection Certificate: MCGM (Tree Authority)
11.Non-Agricultural Permission: Collector's Office
12.Civil Aviation No Objection Certificate: Airport Authority of India
13.Pest Control No Objection Certificate: MCGM (PCO)
14.MTNL No Objection Certificate: MTNL
15.Chief Fire Officer's No Objection Certificate: Fire Department Office
16.Commencement Certificate: MCGM
17. Lift Inspection No Objection Certificate:Inspector of Lifts, PW
18. Occupation Certificate (OC):MCGM
19.Water Connection Certificate under section 270A:MCGM
20.Drainage Completion Certificate:MCGM (Water Department)
21.Building Completion Certificate (BCC):MCGM
22.TDR Loading:MCGM
23.Building Demolition Work:Contractor appointed for demolition work
24.Soil Testing Report:The Concerned Laboratory
Please ensure to collect all the listed certificates from the Developer/Developer as the same must be with the custody of the Housing Society once the redevelopment of the property is completed and the occupancy certificate is issued by MCGM to rehouse the members.
3. The Developer should provide the following infrastructure after the completion of the re-development work:
a. Complete paving around the building finished with suitable materials
b. Storm Water Drain
c. Sewerage lines
d. Security arrangements
e. Garden and landscaping (wherever possible)
f. Pipe gas line (as per availability)
g. Internet facility (as per availability)
h. Society office
i. Adequate car parking spaces
The Developer has to provide extra areaover and above the existing carpet area to all the members free of cost in the newly constructed building. The flower bed as open balcony area should be provided as permitted by The Municipal Corporation of Greater Mumbai. (Area will be approx sq.fts.)
4.The Developer should pay the society/individual member, a corpus fund of Rs……..towards granting of development rights. The above amount is helpful in paying all outgoings of the existing members in the newly constructed flats. The corpus amount is worked out on the basis of Rs……..per sq.fts on the existing carpet area.
5.The Developer should provide displacement compensation towards temporary alternate accommodation to the affected members during the construction work at the rate of Rs…… per sq.ftson the existing carpet area. The compensation has to be paid from the time the vacant possession is given by the members for demolition till the construction of the new building/s is/are complete and the peaceful possession of the new flats given by the Developer.
6.The society shall accept and admit the prospective/additional flat owners of the newly constructed building/s as members of the society and treat them at par with existing members.
7.The Developer should prepare a tentative layout of the new building which has to be shown to the members as and when required.
8.The Developer may tie up with leading financial institutions and banks and arrange for necessary approvals for housing loans for the existing members and prospective clients.
9.The Developer should complete the entire re-development work within a period of ___ months or as agreed with the Society after all the legal formalities and Municipal approvals are obtained. The initial Municipal approvals will take about three months depending upon the existing rules and regulations governing the re-development work.
STANDARD LIST OF AMEMITIES
Structure:The structure would be designed as Multi Frame Structure of RRC with provisions of Earth Quake resistance features.
Elevation and Planning:Exquisitely designed elevation features may be provided along with careful and detailed planning with plenty of light and ventilation in each rooms and minimum wastage space with proper co-ordination of all rooms. The building may be provided with sand faced plaster on the external face water proofing plaster and chicken mesh should be used as required
Entrance Lobby:The entrance lobby may be elegantly designed with Granite tile and POP false ceiling.
Doors: All the doors should be provided with Marine Flush Doors and CP frame with cover mouldings. The main door must be provided with good quality night latch, safety chain, tower blot and attractive handle. Internal doors may be provided by cylindrical mortise type locks.
Windows:All the windows of rooms and toilets should be provided with marbles frames with designed mouldings. Heavy section powered aluminum sliding windows with 5 mm tinted glass may be provided with imported bearings and fittings.
Plaster of Paris:Beautifully designed cornice has to be provided in living room. Walls of all the rooms to be finished with POP panning and grooves to be provided on top of the skirting
Electric work:All the electric wiring work must be done as per the norms of Reliance Energy using 1/18, 3/20, and 7/20 flexible wires with use of MCB and ELCB for safety of the flat owners. Latest available switches of reputed company must be provided. Extensive electric layout comprising of the following points to be provided:
Spot Lights (living room and bed room)
Tube lights
Fans
A.C. (living room and bed room)
Geysers
Exhaust fans
Aqua guard
Mixers
Washing machine
Refrigerator
T.V. cable
Gas pipe line (if available)
Refrigerator
T.V. cable
Gas pipe line (if available)
Plumbing:All the plumbing pipes, fixtures and fittings should be strictly as per IS Norms. CP plumbing fixtures (ESS ESS or JAGUAR) should be be provided in all toilets with matching sanitary ware of reputed company. Plumbing points should comprise of wall mixtures, showers, taps, washing machines and aqua guard.
Flooring and Tiling: Marble or granite or granite flooring should be provided with matching skirting of 3”. Toilets should have full dado height of coloured glaze tiles of reputed company of Indian or imported make with designer borders and motifs.
Kitchen:Granite kitchen platform comprising of cooking and serving platforms may be provided with moulded facia patti and vertical sides. Stainless steel sink has to be provided.
Colour:The entire flat should be painted with Synthetic enamel paint including doors and ceilings. The external walls of the buildings must be painted with good quality cement paint.
Lift:Lift of OTIS/Johnson make may be provided with all the safety features.
Terrace: The terrace should be finished with china chips and high parapet wall with corner lights and water points.
Compound wall and gates: New compound wall should be constructed with proper design and sufficient electric points. M.S. main gate should be provided for safety.
Paving: The entire compound wall should be paved with concrete and finished with heavy duty checkered tiles.
The task of satisfactory completion of redevelopment of any Housing Society and to get back their members in their dream houses is not difficult provided the Office Bearers and the Committee Members are honest and justify their respective posts in the welfare and well being of the members of the Society.
Monday, November 28, 2011
IOD And Maning
Incase you need consulting/assistance in your society redevelopment procedure do email us on landguruz@gmail.com or contact us on 9820202142
To avoid disaster in the process of redevelopment of hosing society in Mumbai interpretation of law is important
Today society are opting for redevelopment in which the builder provides them extra carpet and larger rooms by taking the benefits of FSI using TDR and construct additional residential and commercial and earn monetarily
Most important aspect arises at the time when existing building of the society is demolished on the basis of IOD (Intimation of Disapproval)
An IOD is issued based to developer after the redevelopment plans are submitted to the Building Proposal Department of BMC , The developer needs to comply with many requirements obtain various clearances from Environment Authorities, Tree Authorities, Fire Officer etc. Only after the clearances are obtained, the developer gets a commencement certificate (CC)
All these clearances are necessary before getting the cc and after getting the IOD
If the developer fails to get all these clearances the construction cannot commence
However it is seen that the buildings are demolished on the basis of IOD even when major clearances are not obtained.
To avoid disaster in the process of redevelopment of hosing society in Mumbai interpretation of law is important
Today society are opting for redevelopment in which the builder provides them extra carpet and larger rooms by taking the benefits of FSI using TDR and construct additional residential and commercial and earn monetarily
Most important aspect arises at the time when existing building of the society is demolished on the basis of IOD (Intimation of Disapproval)
An IOD is issued based to developer after the redevelopment plans are submitted to the Building Proposal Department of BMC , The developer needs to comply with many requirements obtain various clearances from Environment Authorities, Tree Authorities, Fire Officer etc. Only after the clearances are obtained, the developer gets a commencement certificate (CC)
All these clearances are necessary before getting the cc and after getting the IOD
If the developer fails to get all these clearances the construction cannot commence
However it is seen that the buildings are demolished on the basis of IOD even when major clearances are not obtained.
Redevelopment in depth
Redevelopment Rules
An increase in Floor Space Index (FSI) and the ratio of permissible built up are to plot area and the ever increasing property prices are making developers approach residents asking for permission to demolish their old structure and put up a new building with more apartments for a big house and more money
There are some facts you definitely need to check before you put your society for Redevelopment with a developer
Documents Required by the society :
- Conveyance deed
- Society Registration Certificate
- General Body Resolution to go for redevelopment
- List of member with their respective carpet areas
- C.T.S. plan & property card for the plot.
- D.P. remarks, If the property is under TPS scheme then T.P. remarks
- Copy of municipal approval plans
Appointing a Redevelopment Project Management Consultant (PMC)
It’s very important for co-op housing society in Mumbai to appoint a redevelopment project management consultant (PMC) who will first prepare a feasibility report
Consultant is basically a team of Architects, Civil Engineers and Legal Advisors.
An Architect is required to prepare financial feasibility of project, Technical Analysis of offers of developers, verifications of building plans prepared by the developers, preparation of schedule of municipal process with developer
Choosing a developer / builder
The developer / builder should have strong cash surplus, otherwise the development of the new building could land up in a stop gap
STAGES OF REDEVELOPMENT in Mumbai
1. Offer letter to the society
2. Terms and conditions with the society
3. Agreement with the society
4. Sanction from MCGM in favor of the society
5. Loading of TDR in the society’s name
6. Obtaining the IOD
7. Shifting of the members
8. Demolition of the building
9. Obtaining the CC
10. Construction of the new building
11. Obtaining the OC
12. Shifting the old members
There are some facts you definitely need to check before you put your society for Redevelopment with a developer
Documents Required by the society :
- Conveyance deed
- Society Registration Certificate
- General Body Resolution to go for redevelopment
- List of member with their respective carpet areas
- C.T.S. plan & property card for the plot.
- D.P. remarks, If the property is under TPS scheme then T.P. remarks
- Copy of municipal approval plans
Appointing a Redevelopment Project Management Consultant (PMC)
It’s very important for co-op housing society in Mumbai to appoint a redevelopment project management consultant (PMC) who will first prepare a feasibility report
Consultant is basically a team of Architects, Civil Engineers and Legal Advisors.
An Architect is required to prepare financial feasibility of project, Technical Analysis of offers of developers, verifications of building plans prepared by the developers, preparation of schedule of municipal process with developer
Choosing a developer / builder
The developer / builder should have strong cash surplus, otherwise the development of the new building could land up in a stop gap
STAGES OF REDEVELOPMENT in Mumbai
1. Offer letter to the society
2. Terms and conditions with the society
3. Agreement with the society
4. Sanction from MCGM in favor of the society
5. Loading of TDR in the society’s name
6. Obtaining the IOD
7. Shifting of the members
8. Demolition of the building
9. Obtaining the CC
10. Construction of the new building
11. Obtaining the OC
12. Shifting the old members
Monday, November 7, 2011
Thursday, November 3, 2011
Occupation Certificate
OCCUPATION CERTIFICATE
Construction of the building: The building construction work will began in full earnest as per the approved plans by the MCGM taking into consideration the various safety factors to be considered during the construction work. The quality and the amenities will be provided as per agreed terms and conditions and duty of Project management consultant to ensure the same.
Obtaining the OC: The last step before the construction work is termed as complete is obtaining the Occupation Certificate enabling the Developer to allot the occupation to the old as well as the new member.
Shifting the old members: On receipt of the Occupancy Certificate the Developer can lawfully allow the possession of the flats to be taken over by their owners.
Construction of the building: The building construction work will began in full earnest as per the approved plans by the MCGM taking into consideration the various safety factors to be considered during the construction work. The quality and the amenities will be provided as per agreed terms and conditions and duty of Project management consultant to ensure the same.
Obtaining the OC: The last step before the construction work is termed as complete is obtaining the Occupation Certificate enabling the Developer to allot the occupation to the old as well as the new member.
Shifting the old members: On receipt of the Occupancy Certificate the Developer can lawfully allow the possession of the flats to be taken over by their owners.
Tuesday, September 27, 2011
Indeminity Bond
It is learnt that in many Societies, the Managing Committees, who execute the documents with the Developers, do not possess any legal holding as they have never filed/nor aware of filing the Indemnity Bond in Form M-20 on a Stamp required under Section 73(1AB) and Rule 58A of the Maharashtra Cooperative Societies Act 1960.
The members who fail to execute such Bonds within the specific period are deemed to have vacated his office as a member of the committee and no legal effects can be given to the documents executed by them with the Developers.
The members who fail to execute such Bonds within the specific period are deemed to have vacated his office as a member of the committee and no legal effects can be given to the documents executed by them with the Developers.
Saturday, September 24, 2011
DUTIES AND FUNCTIONS OF THE DEVELOPER
From The Desk Of Shree.Mahendra Sawant
Architectural Head
The Developer to demolish the building existing in the plot and construct new multi storied buildings taking into account the earthquake resistant factors as directed by The Municipal Corporation of Greater Mumbai. The new building should have stilt for car parking and should consist of _____ stories as per approved plans. The final plans are to be prepared after due consultation with the managing committee and understanding their requirements.
The Developer shall be responsible to obtain all the necessary approvals from The Municipal Corporation of Greater Mumbai and all other statutory and Government offices and departments which will include:
• Development Planning Remark or Town Planning Remark:MCGM (Dev. Dept.)
• Survey of the entire plot with regards to the area and topography of the plot, existing plot boundary and existing structures (Developer’s Architect)
• Intimation of Disapproval (IOD): MCGM
• Property Tax Assessment NOC: MCGM (Assessment Department)
• Hydraulic Engineer No Objection Certificate: MCGM (Hydraulic Department)
• Storm Water Drainage No Objection Certificate: MCGM
• Sewerage No Objection Certificate: MCGM
• Traffic Deptt. of Municipal Corporation of Greater Mumbai No Objection Certificate: MCGM
• Urban Land Ceiling NOC: Competent Authority in Collector's Office
• Tree No Objection Certificate: MCGM (Tree Authority)
• Non-Agricultural Permission: Collector's Office
• Civil Aviation No Objection Certificate: Airport Authority of India
• Pest Control No Objection Certificate: MCGM (PCO)
• MTNL No Objection Certificate: MTNL
• Chief Fire Officer's No Objection Certificate: Fire Department Office
• Commencement Certificate: MCGM
• Lift Inspection No Objection Certificate: Inspector of Lifts, PW
• Occupation Certificate (OC):MCGM
• Water Connection Certificate under section 270A:MCGM
• Drainage Completion Certificate: MCGM (Water Department)
• Building Completion Certificate (BCC):MCGM
• TDR Loading: MCGM
• Building Demolition Work: Contractor appointed for demolition work
• Soil Testing Report:The Concerned Laboratory
Please ensure to collect all the listed certificates from the Developer/Developer as the same must be with the custody of the Housing Society once the redevelopment of the property is completed and the occupancy certificate is issued by MCGM to rehouse the members.
Monday, September 5, 2011
Associate Membership And The Legal Implications Of His/Her Rights In The Society
From The Desk Of(G.V. NAYAK)
Advocate, High Court
The Maharashtra Co-Operative Society Act provides four types of membership under section 2 (19) and they are:-
1. A member means a person who submits an application for registration of co-op. Hsg. Society which is subsequently registered, or a person duly admitted to membership of the society after registration. It includes nominal, associate or sympathiser member.
2. Associate member: Associate member means a member who holds jointly the share of the society with others but whose name should not stand first in the share certificate.
3. Nominal member: Nominal member means a person admitted to membership as such after registration in accordance with the bye-laws.
4. Sympathiser member: Sympathiser member means a person who sympathises with the aims and objectives of the society and who is admitted by the society as such member after registration of the society.
All promoter/ members at the time of registration are considered to be the main member and all people who were admitted as such member by the society can be called as the member of the society.
A member occupying the flat in the housing society is not a tenant of the society. There is no relationship between the society and the member as landlords and tenants. The relationship is a special type which is governed by special law made for the purpose, i.e. Co-operative societies act and the rules and bye-laws with regulations framed from time to time. The nominal member or the sympathiser members are not entitled to any share in any form whatsoever in the profits and assets of the society. The nominal or sympathiser member does not enjoy ordinarily any privileges and rights of a member. But a member or an associate member have some privileges and rights subject to such liabilities of a member as specified in the bye-laws of the society.
I will explain the legal position of a member and an associate member. A member of the society is fully qualified to enjoy the rights in respect of the property and also enjoy additional rights of administration to the affairs of the society. If one member purchases a flat that member is not only the owner of the flat but also has a right to participate in the administration of the society, viz. To attend the meetings, exercises vote, become a member of the managing committee and hold any post of office bearers after election. So he enjoys two rights, one proprietary right and second administrative rights. This member has absolute rights to dispose of his flat and transfer his proprietary rights as well as administrative rights to a purchaser.
But the associate member is a member who has been delegated with the powers to participate only in the administration of the society but he has no proprietary rights in the property, viz. The flat. The associate member is like a joint member but he is not exactly the joint member as understood by us.
Some times the flat is purchased by two persons and these two persons either might have contributed equal amounts for purchase or some share in the property, may be 50-50% of both are joint owners. Here the joint owner is not an associate member. First member and joint member both have property rights and at the time of sale of the flat, both have to execute the deed of transfer or agreement of transfer. The associate member is a member created by the main member. In the society’s administration, a member cannot grant to third party a power of attorney to participate in the administration of society’s affairs. But he has absolute right to grant power of attorney to deal with his flat for selling or dealing with it. The associate member enjoys the rights only to the extent of participating in the administration provided he submits his application to the society. His rights are derivative rights although the law provides that the associate member’s claim can be joints as next to the main member. He does not enjoy the power to execute the deed of sale when the flat is sought to be transferred.
The power of the associate member extinguishes when the main member dies.
These legal implications of an associate member are not clearly stated in law but by various judicial precedents and judgement, the privileges and the rights of the associate member are stated. When a member appoints an associate member and if the main member exercises his power of attending the meetings, to exercise his vote and participate in the election, the associate member cannot claim the right to participate jointly with the main member.
It is only the main member who is unable to exercise his powers on account of staying away from the area of operation or sick or mentally unsound, then the associate member can exercise the participative right in the administration of the society.
All societies should always remember that whenever an application for associate membership is filed with the recommendation of the main member, the society must ascertain whether the associate member stays in the flat. It is necessary that the associate member should reside with the member. If he is not residing, the society is justified in rejecting such intending associate member’s application for admission. (this is a mere guideline given by the federation).
It is very pertinent to note that although the associate member is not having a share in the property or no proprietary rights, he is bound by the liability to pay to the society if there is any arrears.
The associate member by accepting his status of the society, becomes liable to pay to the society’s outgoings in the event of the first member or the main member failing or unable to pay. The associate member therefore has only the liability to pay the outgoings and also enjoys the participative right in the management but he has no right to claim any share in the property and in the flat.
The societies therefore should not admit an associate member unless they ensure that the associate member has an income and that he is residing with the main member and that he has to exercise the right only in the absence of the main member. These three criteria’s are to be considered before the society accepts the associate member.
The associate member in the absence of the main member can attend general body meetings, exercise voting rights, get himself elected in the managing committee and become office bearers. These are the administrative rights enjoyed by an associate member so long as he is an associate member. The termination of the associate membership has to be done only in accordance with the provisions of the bye-laws. As regards nominal member, neither they have proprietary rights nor do they have administrative right. They are enjoying the right because the society has accepted them and they have to play their role within the permissible limit. But, however, they are liable to pay admission fees before they are enrolled.
If you have any doubt about the rights and the privileges of the associate member after reading the legal implications of associate member, you may write to me.
Monday, July 25, 2011
Redevelopment Of Hsg Societies
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.
It has been often noticed that during the process of redevelopment, the terms of Development Agreements as agreed upon, are later twisted and grossly violated by the Developers and the ground rules of MRTP and DCR by unlawful planning are flouted by constructing additional/unauthorized areas that are beyond the entitlement (i.e. beyond the plot FSI and the TDR/FSI loaded) for their hidden financial gains. The buyers of such unlawful flats/properties land themselves in deals that lead to litigation at a later date.
At times, upon the completion of the Project, there are major inconsistencies and discriminatory features noticed in the approved plans v/s actual layouts, measurements and other aspects in respect of the constructions of residential area and the commercial area which may not be in conformity with the Development Agreement originally executed between the Society and the Developer.
Under Right to Information Act, the Housing Society can procure all the Plans and the related documentary evidences from MCGM duly attested by two Senior Engineers of the Building Proposals Dept. to study the anomalies which exist in execution of the entire redevelopment project even after the occupancy certificate is issued.
It has also been observed that the deviation of vital Rules and Guidelines of MRTP/MCGM/DCR are conveniently overlooked by few corrupt and dishonest but “Sympathetic Officials” of MCGM and the final plans with numerous anomalies so submitted by the said Developer are approved by them without verifying the justifiability or its conformity with the Development Agreement executed with the Society.
Further, it is learnt that in many Societies, the Managing Committees, who execute the documents with the Developers, do not possess any legal holding as they have never filed/nor aware of filing the Indemnity Bond in Form M-20 on a Stamp required under Section 73(1AB) and Rule 58A of the Maharashtra Cooperative Societies Act 1960.
The members who fail to execute such Bonds within the specific period are deemed to have vacated his office as a member of the committee and no legal effects can be given to the documents executed by them with the Developers.
[CENTER]STAGES OF REDEVELOPMENT[/CENTER]
1. Offer letter to the society
2. Terms and conditions with the society
3. Agreement with the society
4. Sanction from MCGM in favour of the society
5. Loading of TDR in the society’s name
6. Obtaining the IOD
7. Shifting of the members
8. Demolition of the building
9. Obtaining the CC
10. Construction of the new building
11. Obtaining the OC
12. Shifting the old members
Offer letter to the society: The Housing Society is required to advertize in 2 leading news papers inviting the sealed tenders from the Developers and a Redevelopment Committee is formed to shortlist atleast 3 Developers on merits and the comparative data is placed before the SPGM for final selection. The selected Developer is informed accordingly and his terms are invited in writing as an Offer letter to the society
Terms and conditions with the society: The first step towards the re-development is agreeing on the basic terms and conditions between the members and the Developer. The broad terms and conditions will include extra area, corpus money, shifting charges, alternate accommodation, time of re-development, amenities in the new building, etc.
Finalizing the plans with members: After due consultation with all the members, the plan will be made to suit the requirements of the existing members and will be approved by them before applying for sanction from MCGM
Agreement with the society: The execution of the development agreement will be done once the above two points have been cleared by both the parties and after the draft copy of the agreement have been approved by the solicitors of both the parties. It is possible to appoint a common solicitor so as to reduce the time in execution of the document
Sanction from MCGM in favour of the society: After the execution of the development agreement, plans are put up for sanction from MCGM with regards to the entire layout as well as the concession plans in favour of TWO FSI (i.e. plot area + TDR purchased from open market). This step makes the society feel safe and confident towards the Develop
Loading of TDR in favour of the society: On receipt of the plans from MCGM approving the loading of TDR, the Developer will purchase the TDR from the open market in the name of the society and get the same deducted and loaded from MCGM. This step is taken with the intention of making the society feel secure about the entire development process
Obtaining the IOD: After the TDR is loaded, the IOD is obtained from the MCGM, the Developer then starts fulfilling all the conditions as mentioned in the IOD before obtaining the Commence Certificat
Shifting of the members: The members will feel lot more confident after the IOD is been obtained from the MCGM towards the entire development of TWO FSI. The members will now shift into their alternate accommodation as a pre-requisite before demolition of the building which is a must before obtaining the CC from MCGM
Demolition of the building: Once the members have shifted into their alternate accommodation, the demolition of the building will take place either all the wings simultaneously or phase wise depending upon the scheme of re-development. Usually about three months are given to the members from the date of execution of the development agreement before asking them to shift to the alternate accommodation
Obtaining the CC: The IOD approval and demolition of the building will be followed by the issue of the CC (plinth level) by the MCGM which shall enable the Developer to start the construction work and after the plinth lines are verified by the MCGM officers, the further CC is granted for the complete building
Construction of the building: The building construction work will began in full earnest as per the approved plans by the MCGM taking into consideration the various safety factors to be considered during the construction work. The quality and the amenities will be provided as per agreed terms and conditions
Obtaining the OC: The last step before the construction work is termed as complete is obtaining the Occupation Certificate enabling the Developer to allot the occupation to the old as well as the new member
Shifting the old members: On receipt of the Occupancy Certificate the Developer can lawfully allow the possession of the flats to be taken over by their owners
[CENTER]
DUTIES AND FUNCTIONS OF THE DEVELOPER[/CENTER]
1. The Developer to demolish the building existing in the plot and construct new multi storied buildings taking into account the earthquake resistant factors as directed by The Municipal Corporation of Greater Mumbai. The new building should have stilt for car parking and should consist of _____ stories as per approved plans. The final plans are to be prepared after due consultation with the managing committee and understanding their requirements.
2. The Developer shall be responsible to obtain all the necessary approvals from The Municipal Corporation of Greater Mumbai and all other statutory and Government offices and departments which will include:
1.Development Planning Remark or Town Planning Remark: MCGM (Dev. Dept.)
2. Survey of the entire plot with regards to the area and topography of the
plot,
existing plot boundary and existing structures (Developer’s Architect)
3.Intimation of Disapproval (IOD): MCGM
4.Property Tax Assessment NOC: MCGM (Assessment Department)
5.Hydraulic Engineer No Objection Certificate: MCGM (Hydraulic Department)
6.Storm Water Drainage No Objection Certificate: MCGM
7.Sewerage No Objection Certificate: MCGM
8.Traffic Deptt. of Municipal Corporation of Greater Mumbai No Objection Certificate:
MCGM
9.Urban Land Ceiling NOC: Competent Authority in Collector's Office
10. Tree No Objection Certificate: MCGM (Tree Authority)
11.Non-Agricultural Permission: Collector's Office
12.Civil Aviation No Objection Certificate: Airport Authority of India
13.Pest Control No Objection Certificate: MCGM (PCO)
14.MTNL No Objection Certificate: MTNL
15.Chief Fire Officer's No Objection Certificate: Fire Department Office
16.Commencement Certificate: MCGM
17. Lift Inspection No Objection Certificate:Inspector of Lifts, PW
18. Occupation Certificate (OC):MCGM
19.Water Connection Certificate under section 270A:MCGM
20.Drainage Completion Certificate:MCGM (Water Department)
21.Building Completion Certificate (BCC):MCGM
22.TDR Loading:MCGM
23.Building Demolition Work:Contractor appointed for demolition work
24.Soil Testing Report:The Concerned Laboratory
Please ensure to collect all the listed certificates from the Developer/Developer as the same must be with the custody of the Housing Society once the redevelopment of the property is completed and the occupancy certificate is issued by MCGM to rehouse the members.
3. The Developer should provide the following infrastructure after the completion of the re-development work:
a. Complete paving around the building finished with suitable materials
b. Storm Water Drain
c. Sewerage lines
d. Security arrangements
e. Garden and landscaping (wherever possible)
f. Pipe gas line (as per availability)
g. Internet facility (as per availability)
h. Society office
i. Adequate car parking spaces
The Developer has to provide extra areaover and above the existing carpet area to all the members free of cost in the newly constructed building. The flower bed as open balcony area should be provided as permitted by The Municipal Corporation of Greater Mumbai. (Area will be approx sq.fts.)
4.The Developer should pay the society/individual member, a corpus fund of Rs……..towards granting of development rights. The above amount is helpful in paying all outgoings of the existing members in the newly constructed flats. The corpus amount is worked out on the basis of Rs……..per sq.fts on the existing carpet area.
5.The Developer should provide displacement compensation towards temporary alternate accommodation to the affected members during the construction work at the rate of Rs…… per sq.ftson the existing carpet area. The compensation has to be paid from the time the vacant possession is given by the members for demolition till the construction of the new building/s is/are complete and the peaceful possession of the new flats given by the Developer.
6.The society shall accept and admit the prospective/additional flat owners of the newly constructed building/s as members of the society and treat them at par with existing members.
7.The Developer should prepare a tentative layout of the new building which has to be shown to the members as and when required.
8.The Developer may tie up with leading financial institutions and banks and arrange for necessary approvals for housing loans for the existing members and prospective clients.
9.The Developer should complete the entire re-development work within a period of ___ months or as agreed with the Society after all the legal formalities and Municipal approvals are obtained. The initial Municipal approvals will take about three months depending upon the existing rules and regulations governing the re-development work.
[CENTER]STANDARD LIST OF AMEMITIES[/CENTER]
Structure:The structure would be designed as Multi Frame Structure of RRC with provisions of Earth Quake resistance features.
Elevation and Planning:Exquisitely designed elevation features may be provided along with careful and detailed planning with plenty of light and ventilation in each rooms and minimum wastage space with proper co-ordination of all rooms. The building may be provided with sand faced plaster on the external face water proofing plaster and chicken mesh should be used as required
Entrance Lobby:The entrance lobby may be elegantly designed with Granite tile and POP false ceiling.
Doors: All the doors should be provided with Marine Flush Doors and CP frame with cover mouldings. The main door must be provided with good quality night latch, safety chain, tower blot and attractive handle. Internal doors may be provided by cylindrical mortise type locks.
Windows:All the windows of rooms and toilets should be provided with marbles frames with designed mouldings. Heavy section powered aluminum sliding windows with 5 mm tinted glass may be provided with imported bearings and fittings.
Plaster of Paris:Beautifully designed cornice has to be provided in living room. Walls of all the rooms to be finished with POP panning and grooves to be provided on top of the skirting
Electric work:All the electric wiring work must be done as per the norms of Reliance Energy using 1/18, 3/20, and 7/20 flexible wires with use of MCB and ELCB for safety of the flat owners. Latest available switches of reputed company must be provided. Extensive electric layout comprising of the following points to be provided:
Spot Lights (living room and bed room)
Tube lights
Fans
A.C. (living room and bed room)
Geysers
Exhaust fans
Aqua guard
Mixers
Washing machine
Refrigerator
T.V. cable
Gas pipe line (if available)
Refrigerator
T.V. cable
Gas pipe line (if available)
Plumbing:All the plumbing pipes, fixtures and fittings should be strictly as per IS Norms. CP plumbing fixtures (ESS ESS or JAGUAR) should be be provided in all toilets with matching sanitary ware of reputed company. Plumbing points should comprise of wall mixtures, showers, taps, washing machines and aqua guard.
Flooring and Tiling: Marble or granite or granite flooring should be provided with matching skirting of 3”. Toilets should have full dado height of coloured glaze tiles of reputed company of Indian or imported make with designer borders and motifs.
Kitchen:Granite kitchen platform comprising of cooking and serving platforms may be provided with moulded facia patti and vertical sides. Stainless steel sink has to be provided.
Colour:The entire flat should be painted with Synthetic enamel paint including doors and ceilings. The external walls of the buildings must be painted with good quality cement paint.
Lift:Lift of OTIS/Johnson make may be provided with all the safety features.
Terrace: The terrace should be finished with china chips and high parapet wall with corner lights and water points.
Compound wall and gates: New compound wall should be constructed with proper design and sufficient electric points. M.S. main gate should be provided for safety.
Paving: The entire compound wall should be paved with concrete and finished with heavy duty checkered tiles.
The task of satisfactory completion of redevelopment of any Housing Society and to get back their members in their dream houses is not difficult provided the Office Bearers and the Committee Members are honest and justify their respective posts in the welfare and well being of the members of the Society.
Friday, May 20, 2011
Answer To The Query regarding The Property Card
It is property card which needs to be updated with the legal
heirs of the Deceased and not 7/12 extract. After the names are shown
in the property card then get the conveyance done from the legal heirs
of the Deceased owner. Kindly go through the earlier documents between
the owner and the builders. In case of Further Assistance Kindly Feel free To Call Adv.Madhuri Gaikwad On 9819111678
heirs of the Deceased and not 7/12 extract. After the names are shown
in the property card then get the conveyance done from the legal heirs
of the Deceased owner. Kindly go through the earlier documents between
the owner and the builders. In case of Further Assistance Kindly Feel free To Call Adv.Madhuri Gaikwad On 9819111678
Tuesday, May 17, 2011
Indemnity BonD
| INDEMINITY BOND |
| |
| Further, it is learnt that in many Societies, the Managing Committees, who execute the documents with the Developers, do not possess any legal holding as they have never filed/nor aware of filing the Indemnity Bond in Form M-20 on a Stamp required under Section 73(1AB) and Rule 58A of the Maharashtra Cooperative Societies Act 1960. The members who fail to execute such Bonds within the specific period are deemed to have vacated his office as a member of the committee and no legal effects can be given to the documents executed by them with the Developers. |
Thursday, April 14, 2011
STAMP DUTY 2
Q. Is stamp duty payable on the document or transaction?
A. It is payable on document and not on transaction. Stamp duty is charged on the basis of the contents of the document only. If any information essential for working out stamp duty is missing in the document, valuation officer can all for the same. Information such as the Carpet or Built-up area of the flat, number of floors in the building, year of construction, name of Division/Village and C.S./C.T.S. number or plot of land on which property is situated must be mentioned in the agreement.
Q. Is stamp duty payable on all documents relating to transfer of immovable property?
A. Except transfer by will (or by Original nomination in a co-operative housing society) all transfer documents including agreements to sell, conveyance deed , gift deed, mortgage deed, exchange deed, deed of partition, power of attomeys, leave and license agreement, agreement to tenancy, lease deeds, power of attomeys to sell for consideration etc have to be property stamped before registration.
In our opinion when a nominee transfers the flat subsequently in the name of legal heirs, that transfer document is to be stamped as a Transfer as per Article 59 of Schedules - I of The Bombay Stamp Act, 1958,(i.e. Rs. 100, at present), as the nominee is a deemed trustee and the legal heirs are beneficiaries.
Q. In whose name the stamp paper required is to be purchased?
A. From 01/05/1994 stamp paper is to be purchased in the name of one of the parties to the documents. if the stamp paper is not in the name of one of the parties and if it is used for preparing the agreement then such agreement will be treated as if no stamp paper was used. However, it will not make the agreement invalid and can be enforced in law if proper stamp duty is paid subsequently. Prior to 01/05/1994 stamp paper could be purchased in any name.
Q. What is the validity period of a stamp paper?
A. Stamp paper purchased up to 30/11/1989 was valid for any period of time. However from 01/12/1989 all stamp paper (whether purchased before, on or after 01/12/1989) is valid for a period of six months from the date of purchase and after that it is treated as ordinary paper as if it has no stamp.
However Court fee stamps and Court fee paper is valid for any period of time as there is no time specified in the Bombay Court
Q. What if after adjudication one does not pay stamp duty?
A. If the agreement is signed before adjudication, on the basis of the stamp duty with interest and penalty as application. However, in the case of an unsigned agreement, one may ignore the adjudication order and close the matter if so desired.
Q. Where can a person pay stamp duty?
A. Stamp Duty could be paid legally without adjudication, on the basis of the Stamp Duty Ready Reckoner, at various Stamp Duty payment centers. (See Table of Stamp Duty Payment Centres.)
Apart from above centers there are many authorised stamp vendors from whom stamp paper of the required amount can be purchased and agreement made on them, which is another way of paying stamp duty. Stamp vendors sell stamp papers of face value up to Rs.10,000. A list of Licensed Stamp Venders in Mumbai is displayed at General Stamp office.
Stamp Duty Ready Reckoner is a public document and is available in any law book shop.
Tuesday, April 5, 2011
STAMP DUTY
Q. What is stamp duty? Why should duty be paid?
A. It is a tax, similar to tax (VAT) and income tax collected by the government. Stamp Duty is payable under Section 3 of The Bombay Stamp Act, 1958. Different amount of Stamp Duty is payable for different type of documents as per Schedule-1 of The Bombay Stamp Act, 1958. Stamp Duty must be paid in full and on time. If there is a delay in payment of stamp duty, it attracts penalty. A stamp duty paid document is considered a proper and legal document and as such gets evidentiary value and is admitted as evidence in the court. Document not property stamped, is not admitted as evidence by the court.
Q. What is the penalty for the delayed payment of stamp duty?
A. If stamp duty is not paid on time, it attracts penalty at the rate of 2% per month on the deficit amount of the stamp duty. However, maximum penalty can be 200% of the deficit amount of the stamp duty. Minimum penalty is Rs.100.
Documents lodged with the sab-registrar/collector of stamp prior to any amnesty scheme will attract a lump sum reduced penalty, as applicable under that amnesty scheme, as the case may be.
Q. When is stamp duty payable?
A. It is payable either before execution of the document or on the day of execution of document or on the next working day of executing such a document execution of a document means putting signatures on the document by the persons who are party to the document. However, it is advisable to pay stamp duty before executing the document, for all practical purposes.
Q. Who is liable to pay stamp duty?
A. In the absence of any agreement to the country, the purchaser/transferee has to pay stamp duty or in case of exchange of properties, both parties have to bear stamp duty equally.
Q. What are the documents on which stamp duty is to be paid?
A. Under the Bombay Stamp Act, 1958, stamp duty is to be paid on all documents by which an right or liability is or purports to be created, transferred, limited, extended, extinguished or recorded but does not include a bill of exchange, Cheque, promissory note, bill of lading, letter of credit, policy of insurance, transfer of shares, debentures proxy and receipt, which is charged under Indian Stamp Act, 1899.
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