Old societies are looking at the option of redevelopment and developers are keen to take up redevelopment based on availability of Land and FSI.
Gujarat government came up with draft norm for redevelopment by amending Gujarat Ownership Flats Rules 1974 in July 2019 and final norms in Dec 2019.
This article covers redevelopment where land is owned jointly by members. There are different schemes for redevelopment of Public Housing (Gujarat Housing Board / Urban Local Bodies / Urban Authorities etc of Gujarat) and Slum redevelopment which will be covered in next article.
Benefits of Redevelopment
- Larger apartments
- Better amenities
- Higher resale value of property
- More parking space
- Better fire safety system
Conditions for Re-Development
- (a) The period of twenty-five years of a building shall have completed from the date of issuance of the permission for development by the concerned authority, or
(b) The building is declared dilapidated, ruinous or dangerous in any way to any person occupying, resorting to or passing by such structure or any other structure or place in the neighborhood thereof by the concerned authority, and - Consent of not less than seventy-five per cent of the members of the building for re-development of the building shall be necessary.
Who can call for Re-Development
- Managing Committee suo-moto
- An application is received from 1/4 of members of the flats
Process
- Managing committee to call for Special General Meeting within a period of 1 month on receipt of application.
- The rules and the byelaws of the society or apartments made under the relevant law with respect to convening meetings of the General Body or the Managing Committee,
- Notice,
- Circulation of agenda items,
- Quorum at the meetings,
- Taking policy decisions,
- Entering into agreement,
- Supplying minutes of the meeting to the members, etc. shall apply to the matters relating to re-development project.
- The Managing Committee shall place before the General Body
the agenda item for taking policy decision relating to- Re-development of building; and
- For appointment of the Architect / Project Management Consultant to prepare the re-development project.
- Consent of not less than seventy-five per cent of the total members of the body for re-development of the building and
- Authorize the Managing Committee to take all further necessary action/steps for re-development project.
- All members of building shall be informed with reference to the policy decision of re-development of the building taken in the meeting.
Project Report
- The Architect / Project Management Consultant appointed by the Managing Committee as per the special general meeting decision, shall prepare the project report within two months and submit the same to the Managing Committee. Report will contain details like:
- Carpet area to be provided to the members
- Providing alternative accommodation and payment of rent
- Vacant area
- Garden area
- Parking space
- Building specifications
- Common areas
- Recreation facilities and amenities
- Provisions of corpus fund and bank guarantee
- Time-limit for completion of the re- development project, obtaining the approvals/permissions from all statutory bodies required under the applicable laws
- Any other matters as may be necessary for re-development project.
- Invite the offers from the eligible contractors, builders, company or developer.
Preparing list of offers received
Immediately after receiving the offers from the contractors, builders, company or developer within the stipulated time limit, the Secretary of the Managing Committee shall prepare a list of offers received and display the same on the notice board of the office of the building for knowledge and information of the members.
Selection of Developer
The Managing Committee shall after considering the offers received and presentation made by each contractor, builder or developer, as the case may be, select one as the developer for the re-development project.
Agreement with the Developer
Subject to the terms and conditions as approved by the special general body meeting of the building, a development agreement shall be entered into with the Developer in consultation of the Architect / Project Management Consultant. The development agreement shall contain following details :
- The period of completing re-development project of the building;
- A bank guarantee, if any, for amount equal to such sum as may be agreed to by the parties;
- Free alternative accommodation to the members till the re-developed flat is handed over to the member, or cash in lieu of existing premises or any combination;
- Registration of development agreement under the Registration Act, 1908;
- Conditions for admission of new members in the building;
- Right of the Developer to sell and/or transfer and dispose of the remaining flats forming part of the re-development project
- Carpet area to be allotted to each member;
- The procedure for allotment of flats to the existing and new members;
- The procedure of termination of development agreement for default or breach of any of the conditions of agreement;
- Other terms and conditions such as amenities to be provided by the Developer, corpus fund, if any, shifting charges, common infrastructure development work, penalty clause for delay in completion of the project, obtaining required approvals for re-development project, re-development work as per the Development Control Regulations of the concerned authorities; and other matters as per the agreement by the parties.
Prohibition on certain acts
The Developer shall not make any changes in the building plan except with the written permission of the Managing Committee.
Allotment of New Flats
- After the re-development work is completed and the completion certificate as well as the Building Use Permission (certificate) is obtained, the Managing Committee shall allot the flats to the existing members as per the list annexed to the development agreement.
- The Managing Committee may pass a resolution to authorize the Developer to sell, transfer, lease, mortgage, convey or deal with any manner in respect of the balance of the units apart from the new units re-allotted to the existing members.”.
Reference
- Gujarat Ownership Flats Rules 1974: Amendment : 26 Dec 2019
- Sec 41A: Gujarat Ownership Flats Act, 1973: Amendment
- The Gujarat Ownership Flats Act, 1973
- The Gujarat Ownership Flats Rules, 1974
- Comprehensive General Development Control Regulations – 2017
- Whether a co-operative housing society is eligible for redevelopment.
- Redevelopment now easier for co-op societies in Ahmedabad
Gujarat Cooperative Societies 
Nicely given details & rules & regulations presented in this
Very nice. Explaining deails very well. Thanks
what is few members are not ready for redevelopment of society?
Once 75% of members have to approve the proposal, a redevelopment process can be initiated.
How to vacant 25% members who are not ready for redevlopment..:
Even after all guidelines is followed but member do not agree, that only option taking remaining members to court.
sir, if three flats are 1 bhk & twelve flats are 2 bhk ,what should we do?
1)1 bhk flat holders require are which are given to 2 bhk flats holders. 2) two flat holders are not ready to give 1 bhk holders offer.
Is it applicable for Chennai
Cooperative Society is a state subject. Thus law will be different. One referred to is of Gujarat.
is it compulsory for a flat owner to remain present in person for signing redevelopment agreement under gujarat rera act.
POA can sign on behalf of flat owner
how many % more should we get ? After redevelopment .
Living in Rajkot in 32 years old building..we have 27 flat and 6 shops in it. We 25 flat owners wants to redevelop the property. 4 shop owner also agree with it. So please guide us, how we can do it fast by rules of redevelopment.
Hello Sir,
i have purchased flat in Ghatlodiya- ahmedabad area the flat was old now society is going under redevelopment and as we had Dastavage/ Agreement of Flat Purchased mentioned for the area of 80 Sq.yrd and the builder is giving area of 72 sq.yrd for which i am not agreed but other members who are staying there long back yearsd about 15-20 years they agreed for the new construction i have also taken loan for the same flat from icici bank as of builder is saying if you want one room extra you need to pay extra amount for which i am not agreed due to financial issues. what ahould i do further process should i claim it to court or is there any other clause for the same please help me for the same as early as possible.
i want to buy a tenement house ina coop society which is more than 20 yrs old but thete is no managing commitee in society since begining the original builder has given share certificates to house owner how can i transfer the said house in my name ie the transfer of share certificates kindly advice
If in redevelopment builder develop a new flat with more square feet area than the old flat then in this situation does the existing owners have to pay something to builder or not ❓ Awaiting your best reply.
Sir, can we start the the redevelopment work of 32 years old apartment work without getting RERA permission??
We already applied an application for rera registration.
My comments just like Mr.Priyank Desai as above said the contractor has to provide more place than it is and other extra place has should be full facilities like attached washroom without any cost?Is there not any rules?If co-op society under fadcha and gov.of state body handling what can be happen for re-devlopment?
Our society Co op ho society Ltd have 90 members and around 10180 sq yard land we wants to Redevelop the society because more then 50 us old society requires to re development please suggest us thanks
stamp duty is applicable to rehab member of redevlopment of flat
Thank you sir for your best knowledge and guidelines
1 query if 85 person ready for redevelopment of privet flat old 30 year flat can we go for redevelopment.
More than 75% owner has to be agreeable for redevelopment. So if 85 member are more than 75% of all flats, then answer is yes.
Sir
Thank you for your replay is NTC privet Flats can go for Redevelopment for majority members.
Thank You
Bhavik S Nayee
Very good information provided for redevelopment….
અમારે 30 રો હાઉસ અને 66 ફ્લેટ છે ફ્લેટવાળા રી ડેવલપમેન્ટ માટે તૈયાર છે અને રો હાઉસ વાળા તૈયાર નથી તો આવા સંજોગોમાં શું કરવું જોઈએ
રીડેવલોપમેન્ટ માટે રો હાઉસ ને 75% લાગુ પડે કે નહીં?
My residential flat is 50 years old. Internal road is equal to or less than 3.6 metres. And our flat is not connecting the frontal road, it is second building from the frontal road and first building is already redeveloped . We have more than 75 percent residents agreed for redevelopment. Can the redevelopment be done? Building is in worse condition. If you can help please respond at the earliest. Thank you. Pinks interiors
Internal road is more than 3.6 metre*
What about society with 50 bunglows ??
Sir If builder wants to make 3 bhk front side/Road side but existing plan or old plan have 2 bhk on front side so can 2bhk home owners can oppose to get house in front side not at back side
Hello sir I m live in naranpura one bunglow and one flat is going for renovation with condition our flat not take for renovation but it’s from next to that flat and all member want to renovate our flat with that bunglow and flat then give solution
We have 2 separate agreement for 1BHK Configuration, which has been joined and converted into a 3BHK Flat. During redevelopment, will we get 2 flats or only one flat?
Hello sir
I own a flat built before earthquake in Gandhidham Kutch Gujarat. The building is four storied. After earthquake, due to revised by laws, redevelopment is allowed for up to two stories only. Also revised by laws allow lesser area of construction per floor on the same plot. What is the solution for redevelopment of the dilapidated building
I am not the right person to answer the below query. Suggest you get in touch with lawyers working redevelopment.
My guess, such an owner should get money from the developer and move out.
SIR, OUR SOCIETY HAS TOTAL 192 PROPOSEDFLATS AMONG WHICH ONLY 132 FLATS ARE BUILDED IN 1982 ONWARDS & 60 UNITS ARE NOT BUILDED BY BUILDERS SO FAR, BUILDER IS NOT GIVING US POSSESION TILL DATE DESPITE OF OUR SO MANY AFFORTS. WE HAR OUR NON TRADING ASSOCIATION.. & MANAGING OUR 132 FLATS FOR ALL UTILITIES SO FAR, NOW, BUILDER IS PLANING FOR REDEVELOPMENT OF TOTAL 132 + 60 = 192 FLATS IN OUR 10,977 SQ. MTRS OF LAND. PLEASE GUIDE ME IN TO THE MATTER, KANTILAL PARIKH, M-9825022745, AHMEDABAD
when society is 25 year old but society is well maintained, then society is going too redevelopment or not ?
great details you have posted NOW we have a 16 flats apartment in society
our society has 3 final plots with Apartments and Raw houses
our apartment is 30 years old and 13 flats holders are ready
But we are not giving to develop to other party I mean we are planning to develop
as Self Development We will follow the government rules and with all holders
consent and do papers work Who is going to do what. city permission is possible
as we have sufficient open space around building
please let me know What we can do more as law?
Thanks
Kishor Patel
AKAR SOCIETY, TOTAL 53 TENAMENT SOCIETY AND MORE THAN 8000 SQ YARD PLOT AREA.
NEAR SATYAM MALL, OPP NALANDA COMPLEX,
GOOD FOR REDEVELOPMENT
Brother, Can we outright sell our flats in the redevelopment project? If yes then what is the basis of price?
If chairman/secretary has signed MOU of redevelopment with builder without calling SGM to discuss points of MOU & without even giving chance to members to have any modifications/correction in MOU, what is way for members to raise their right against such unlawful ( VOID AB INITIO) MOU.
Members have to request for a Special General meeting which needs to signed by minimum number of members as mentioned in Byelaws of society with specific agenda of MOU / Redevelopment. Once such a request is given, the Chairman has to call for a meeting in a month’s time.
i HAVE Apartment constructed under ULC act 40 smt Built up area
Building is 35 years old and we have a 3 folds in this time
Building is vibrating we feel unsafe Our building 6 flats holder id doing business
Ground floor owner is using as a restaurant and blokes our cocoon space
and now not co operate for redevelopment In than group has 7 flats
so we can not get consent 75% We are unsafe living in flat building
What to do for this ? We can no go and spent money for court and for legal
person hire We have given application to Municipality also
Business person know that we can not go to court and they earn money so
can the transfer fee be used by society.
Depends on how the same is clasified in books.
Example:
If is clasified as Balance Sheet Items under liability then no.
If is it under Reserve and Surplus, then yes.
Sir, it is shown under capital account as transfer fees.
In redevelopment, can the society use undivided share of land.