Monday, September 26, 2016


Are you cheated by the builders? Are your flats not delivered in time? Despite amounts received towards the cost of flat, builders did not execute and registered the flat agreement? Builders did not form Society and not conveyed the land in favour of Society within stipulated time as per the provisions of Maharashtra Ownership Flats Act, 1963 (MOFA)? Mandatory Building Occupation Certificate (BCC) not procured? The answer to all these questions is given hereunder.

You can now file FIR against such unscrupulous builders. According to a recent circular issued by Maharashtra Police, the flat buyers who have been cheated by any reason as stated above can file a police complaint against their errant builders. The State Police has directed all the police stations across the State of Maharashtra to register complaints against such criminal builders who cheat flat buyers and violate norms under MOFA. In a recent circular issued by the Special Inspector General of Police, Prabhat Kumar instructed all Police Commissioners in the entire Maharashtra State to take action according to the provisions of law when aggrieved flat or property buyers file such complaints.

Earlier, many flat buyers victimized by con builders, went to the police station many times in the past but the police used to refuse to register the complaint against the builders under the MOFA and they were denied stating that their cases were a civil ones directing them to Consumer Court. This circular will now definitely bring relief to buyers who have been cheated by their builders.

It has been reported that there have been numerous cases of harassed flat buyers having a harrowing time at police stations when they went to file complaints. They also experienced that some police officers were being hand-in-glove with unscrupulous builders extracting ungrateful benefits. This circular is certainly a proactive step by the police, a strong push from the top to take such complaints seriously.

However, the builders’ lobby opines that holding builders solely responsible for the reasons beyond their control is a bad sign for construction business, especially when there are frequent changes in building rules and regulations and such circular shall subject the builders to blackmail them from all sections.

The builders’ lobby expresses that there are chances in the area of Redevelopment, the Managing Committee Members shall trouble builders by lodging false complaints and blackmail them for their personal gains. The circular mentions that action can be taken against builders under the MOFA, 1963. However, a senior government official stated that MOFA had been scrapped by the state government and the police had erred by mentioning it in the circular since the MOFA has been superseded by the new Real Estate (Regulation & Development Act) 2016 (RERA).

It is feared that after the implementation of RERA, the agreements will not be covered under MOFA as the new act doesn’t have the same provisions. However, Section 13(2) of the MOFA states that violation of Section 5 is punishable with five years. As per the Criminal Procedure Code (CrPC) First Schedule Table II, the offence is cognizable and an FIR can be filed by the police and should be as per the law. However, for other MOFA violations, the police may not be able to take cognizance as the punishment is less than three years. The RERA has mentioned punishment for three years, if a project is sold without registration and is not cognizable and thus, the police cannot register an FIR. In a few years, most MOFA agreements will be extinct and this will affect the circular.
Some industry players, however, feel that this move is irrational and will discourage the builders since the circular is ‘disturbing’ and it holds the builder solely responsible for delays but there are many issues, which are not in his control. Cornering the real estate sector like this, will spread a negative signal within the industry which is trying to recover and that the onus should also be on the concerned officials of civic body who delay granting the permissions.
City builders are lobbying with the state to withdraw the circular issued by the State Special Inspector General of Police directing every police station to take action against errant builders by registering complaints and further initiating penal action against them. Builders claim the circular is just another ploy that would help police officers to extort money from them for any small reason.

After Prabhat Kumar, the Special Inspector General of Police, issued the circular, several top builders had meetings with officials from the Housing and Home Department at Mantralaya. The builders also met Mr Kumar over getting clarification from him on the circular that was issued. The circular states that complaint should be registered against builders who fail to hand over possession on time to buyers or deliver flats without obtaining occupation certificate (OC). It was further cited that after a delegation of activists had made representation to the police and highlighting various laws under which the police could initiate action against builders.

Meanwhile, a Home Department Official said that the law is already in
place and there is no point even if the circular is withdrawn. It was just a communication sent to all the police commissioners and nothing more should be read out of it. There is no question of withdrawing the circular.

Tuesday, December 2, 2014

Importance of scrutiny and vetting of redevelopment document

Importance of scrutiny and vetting of redevelopment document

In case of lawsuits, the legal documents related to redevelopment play very important role in all Court Cases under Indian Evidence Act. The definition of document has broader and wider meaning, including 'Deeds' and 'Agreements'. All the documents related to redevelopment are important components of evidence in all cases before judicial as well as quasi-judicial authorities.

The Documents must be drafted carefully making sure that they are drafted following all principles of redevelopment and perfect legal terms are being used in its content.

Section 3 of Indian Evidence Act: 1872 says "Document" means any matter expressed or described upon any substance by means of letters, figures or marks, or by more than one of those means, intended to be used, or which may be used, for the purpose of recording that matter. 


A writing is a document 

Words printed lithographed or photographed are documents

A map or plan is a document

An inscription on a metal plate or stone is a document

A caricature is a document.


"Evidence" means and includes-

(1) All statements which the Court permits or requires to be made before it by witnesses, in relation to matters of fact under inquiry; such statements are called oral

(2) All documents produced for the inspection of the Court; such documents are called documentary evidence."

General Clauses Act 1897: Section 3 (18) says; "Document" shall include any matter written, expressed or described upon any substance by means of letters, figures or marks, or by more than one of those means which is intended to be used, or which may be used, for the purpose of recording that matter.

In redevelopment, it is a must that the Landlords of Tenanted Buildings and Housing Societies are required to get their legal documents theoretically scrutinized and methodically vetted by the legal experts/counselors who are well adept in integrated laws governing the

Documents like Feasibility Reports, Tender Documents, Draft of Memorandum of Understanding, Development Agreement, Power of Attorney, Bank Guarantee and Individual Agreement to be executed with each member of the Society that are generally provided by the Developers to the Housing Societies.

These documents are drafted by the Advocates of Developers in a deceitful manner with lack of transparency and thus, provide escape routes and full protection to the Developers by neglecting the vital terms and conditions that are protecting the interest of the Tenants
and the Members of Housing Societies.

The venture of redevelopment of any property involves a massive volume of multi-crore of rupees as also the fate and future of all the Resident Members of the Society. Once the property is handed over to the Developer, the Society has only legal documents in their hand to rely and fall back upon in case of any adverse situation in accomplishing the successful task of the redevelopment.

The timely approach of legal experts/counselors who are well versed in redevelopment laws in respect of drafting/analyzing all the legal documents pertaining to the redevelopment in a scientific and systematic manner, can save the menace of such unforeseen adversities.

We, as senior counselors, are well adept in the field of scrutiny and vetting all types of legal documents in most defined and methodical manner. After precise and meticulous study, these drafts are scrupulously vetted, scanned and scrutinized by us and the gray areas/pitfalls and shortfalls are exposed and a written report is given to our Client Societies/Landlords apprising them the areas of alerts and awareness and to impress upon and compel the Developer to correct/include/provide due coverage before finalizing all the legal documents of redevelopment in corporate interest and safety of the Societies and Landlords to achieve the desired results.

It is required that the Housing Societies/Landlords must study and understand and try to forestall the negative aspects under Financial/Legal and Technical areas to be termed principally in Development Agreement affecting the rights and interest of Members/Tenants.

Senior Counselors and Professionals like us can help you to understand the legal documents which require professional assistance. The Housing Societies/Landlords must consider the complexity of the texting and the potential risks and losses if the document is not prepared correctly. The cost of hiring an expert to vet the legal documents is justified by unfolding the
potential risk of errors and omissions.

Drafting of any document pertaining to the redevelopment is very important component of legal practice and advocacy; one must understand that perfection in drafting is not achieved, unless one understands the relevant provisions under the Acts, Laws and Rules as also facts and language. Many Housing Societies/Landlords suffer in course of litigation due to inferior drafting, lack of documentation skills and without proper understanding of redevelopment laws.


Sunday, May 26, 2013


FSI or Floor Space Index means the area of construction allowed on a particular plot of land as per the Development Control Rules. In Mumbai, the permitted FSI varies in various locations depending upon the land and type of existing residence whether a Slum, Tenanted, MHADA, Cluster or a Co-operative Society and also the project to be redeveloped.

As per Development Control Rules 33(7) of Mumbai, in the case of cess building, every tenant who is having less than 300 sq ft carpet area shall be given minimum of 300 sq ft ownership flat and the tenants having 300 to 753 sq. ft area, the existing area. Any area above 753 sq. feet will not be granted to the tenants.

Of course, the maximum ceiling was 2.5 Floor Space Index (FSI) under this category of buildings. Many of the old buildings in areas like Girgaum, Grant Road, Parel, Byculla, Dadar were not becoming viable under the above rules and therefore, the government took a decision to increase the same to 3 FSI. This has now encouraged the landowners and developers to come forward and redevelop such buildings.
For information, the cess building is one where the landlords of tenanted buildings do not care to maintain the same in case of need, have been taken over by the Mumbai Repair and Reconstruction Board for maintenance by charging a nominal amount as repair cess every month.

In case of redevelopment of plots under the above category, the builder gets incentive FSI of 50% or 60% of FSI over and above the FSI consumed to re-house the existing tenants. In such cases FSI goes beyond 6 or 7. There is no limit. For MHADA layout, the FSI is 2.5. In case of projects approved by MMRDA in Mumbai Metropolitan Region other than Mumbai under Rental Housing scheme, the FSI allowed is 4.
In other words, now in suburbs, private buildings will get 2.7 FSI including fungible and in cess buildings and slums FSI of 4.05 (335% of 3) including fungible will be available. The fungible FSI now can be included in the flat and thus the area of the flat will go up. Therefore, redevelopment activities are in full swing with every other building surrounded by tins.

Further, under the amended DCR effective from 06/01/2012, a developers will be getting fungible FSI of 35% free of premium to the existing tenants and on sale portion 35% fungible FSI by paying a premium. The fungible FSI can be included in the flat and thus the flat area can be further increased.
The existing flat owners and in the other redevelopment like slum, cess buildings etc, the existing tenants will be given fungible FSI for construction free of FSI and on the sale portion, the developer has to pay the premium of 60% of the Ready Reckoner Rate for residential construction area of Fungible FSI and for commercial 80% of the Ready Reckoner Rate as the premium.

With regard to the FSI allowed for slum related projects, the Slum Rehabilitation Authority (SRA) has declared certain areas occupied by slum as the land on which SRA scheme can be redeveloped in which the existing occupiers in slum gets 269 sq ft carpet area free of charge with a restrictive clause that they should have been settled in such slum before 1995. There is a proposal to relax the said clause that the term of settling down in such slum may be extended to 2000. However, the confirmation to this effect is awaited.

The state government has formally increased the floor space index (FSI) for slum rehabilitation projects from 2.5 to a maximum of 4.
The state urban development department issued a notification under section 154 of the Maharashtra Regional and Town Planning Act (MRTP), 1966 stating that projects involving all high-density slums-those having over 650 tenements per hectare-are entitled to an FSI of 4, whereas those with lower tenement density are entitled to 3. Senior officials from the urban development department said that the notification highlights that all procedural formalities concerning the higher FSI move are now complete.

FSI is a development tool that determines the extent of construction permitted on a plot. It is a ratio of permissible built-up to the total area of the plot. A higher FSI would allow developers additional construction on slum land. As per the notification, approvals for redevelopment projects with higher tenement density will be cleared by the state government. The Slum Rehabilitation Authority retains powers to approve schemes with lower tenement density.

Dilip Shah
Senior Counselor and Analyst for Redevelopment of Housing Societies and Society Laws
9819825752, 32411533


Friday, January 11, 2013

Senior Counselor and Analyst for Redevelopment of Housing Societies and Society Laws

                               REDEVELOPMENT OF HOUSING SOCIETIES
We are experienced and Senior Counselors and Analysts for Redevelopment of Housing Societies and Society Laws since last many years with in-depth study of integral techniques and are exclusively skilled in the various areas of Redevelopment of Housing Societies and Society Laws. The Resident Members / Managing Committee Members of Housing Societies gain valuable insights about the fundamental guiding principle of various laws applicable in the process of redevelopment.
Our professional competence in the field of redevelopment is the outcome of skilled application of our knowledge and expertise. This includes interviewing and counselling skills, negotiation and mediation skills, research and writing skills, communication and advocacy skills, drafting skills, fact gathering and articulation skills, time and stress management skills, etc. all of which can be acquired through our guidance on entire process of redevelopment supported by theoretical learning.

It is indeed our pleasure to introduce our exceptionally unique websites distinctively designed to educate the adolescent Members, Managing Committees and Tenants of thousands of Co-operative Housing Societies and Tenanted Buildings who like to learn what is redevelopment and its built-in intricacies. The addresses of our two websites are as under:

With prior appointment on 9819825752 or 32411533, our consultancy slots of two hours for the Meetings are from 12.00 noon to 2.00 p.m. and in the evening from 6.00 p.m. to 8.00 p.m. on all the days of the week (Including Sundays and Holidays). If you wish to avail our services, call on us between 12.00 noon and 2.00 p.m. or in the evening between 6.00 p.m. and 8.00 p.m. for an appointment.   

We hold direct interaction with the Resident Members / Managing Committee Members / Tenants on the various parameters that are involved in Redevelopment of Housing Societies and solve most of their problems / provide adequate direction to represent their cases to various authorities. At present, we have around 70 to 80 Housing Societies including Cessed / Non-Cessed Buildings from Western / Central Suburbs and South Mumbai on our scroll that regularly avail our services at any point of need.
We are well practiced in major laws such as Transfer of Property Act, 1882, Registration Act, 1908, Indian Contract Act, 1872, CRZ laws, State laws like Maharashtra Ownership Flats (Regulation of Promotion of Construction, Sale, Management and Transfer) Act, 1963, Maharashtra Co-operative Housing Societies Act, 1960, Stamp Duty Laws, Development Control Rules, Environmental Law, Tree Cutting Laws, Municipal Laws, Slum Redevelopment Scheme etc.
If there are serious irregularities in the process of redevelopment and when they are noticed halfway, they can jeopardize the redevelopment and the consequences can be severe as what the law does not permit, cannot be done either by the Builder / Developer or by the Society.
We are earnestly thankful to our Media Partners Times of India (Times Property), Hindustan Times (HT Estate), Navbharat Times, CW Property, Mumbai Mirror and First Post for awarding suitable coverage to our articles and publishing our expert comments encompassing various features ruling the Redevelopment of Housing Societies and Societies Laws.
The most important factors that bring out the successful results in any project of redevelopment and they are 1) The selection of correct Builder / Developer and 2) The precise drafting of legal documents governing the entire process of redevelopment.
The Housing Societies often get confused about choosing the best or right or so to say, one HONEST BUILDER / DEVELOPER. There are many cases where the dreams of Members of the Housing Societies are crashed when the terms of Development Agreement are breached and time schedule of completion of project is not maintained by such insatiable Builders / Developers.
There are types of voracious Builders / Developers of III tire who have abandoned or have delayed the redevelopment projects due to various reasons mainly due to paucity of inflow or diversion of funds from the assigned projects in order to acquire / pocket more and more projects beyond their financial means or are simply not capable to execute them due to lack of competency and precision.
Since the redevelopment of a property is an exigent issue now a days with offending Builders / Developers and their felonious and offending treats to inexperienced Managing Committees of Housing Societies, we especially impress our Client Societies to be vigilant on the issues like Delivery Delays, Broken Promises, Breach of Trust, Cheating, Unfair Trade Practice, Deficiency in Service, Abandonment of Redevelopment Projects half way, Corruption and Malpractice to pocket the Redevelopment Assignment, Illegal Constructions, Violation of Acts, Laws and Rules etc.   

Redeveloping a home is a major decision for the lifetime and one would not want to take chances. It is said that till you do not leave your Society, you are the KING. The day on which you handover your property to the Builder / Developer for redevelopment and leave your Society, the Builder / Developer is the KING.   

Our articles are published by numerous websites on Internet for the benefit of Housing Societies in Mumbai to educate their Members and caution them to be cautious from irregularities and illegalities in redevelopment by the Builders / Developers, targeting the na├»ve and innocent Members by major numbers of corrupt Managing Committees, Rampant Corruption in BMC, Flagrant violation of Rules and Regulations by the Builders / Developers and how to beware of Cheat and Fraud Builders / Developers and their dishonest acts.

We are well equipped with almost all the areas with regular updates of latest developments in Realty Sector and provide an exclusive knowledge to tackle unresolved problems and solutions for successful and winning completion of redevelopment projects which is a dream of the day for any middle class family man. However, there are numerous factors / questions that arise during the ongoing process of redevelopment and they are to be taken care of diligently by seeking advice / counseling from Redevelopment Experts who are abundantly conversant with Laws of Redevelopment.
We persistently endeavor our best by updating our website periodically to cater the unsurpassed knowledge of various aspects of redevelopment and unique articles written with exclusively powerful, precise and easy-to-understand content for every individual.
We request our beloved patrons of all Housing Societies / Apartment Owners / Cessed and Non Cessed Buildings in their apex interest to regularly visit / revisit our websites and stay updated on latest features covering up-to-the-minute topics including Govt. Policies on Realty Sector related to redevelopment.

A Redevelopment Agreement, as the name suggests, is Principal Agreement executed for the redevelopment of an old building, between the Office Bearers of Managing Committee / Landlords and the Builder / Developer. But it's not as simple as it sounds; the Housing Societies / Landlords need to exercise necessary caution to ensure that the residents' corporate interest is safeguarded.

The legal documents concerning the redevelopment projects are essentially to be precise and leaving no room for any ambiguity on the agreed terms. Documents drafted meticulously ensure that the parties truly agree on the contents and prevent future disputes caused by differing interpretations of the document. Drafting / Vetting of legal documents accurately is our privileged skill requiring close attention to terms and conditions to be documented in favour of the Society.

While it is easy to draft terms addressing the primary purpose of a legal document, the best documents anticipate all those possible events that might interfere with the client’s intent. We anticipate these events to help our Client Societies / Landlords to determine and arrest such eventualities in documentation.

We are well adept in Laws governing the Redevelopment of Housing Societies and distinctly experienced in DRAFTING / VETTING /  ANALYZING / SCRUTINY and INSPECTION of documents like Feasibility Reports, Tender Documents, Draft of Memorandum of Understanding, Development Agreement, Power of Attorney, Bank Guarantee and Individual Agreement to be executed with each member of the Society that are generally provided by the Builders / Developers to the Housing Societies which are drafted in a manner to provide escape areas / full protection to the Builders / Developers by neglecting the vital terms and conditions protecting the interest of the Society.
The venture of redevelopment of any property involves a massive volume of multi-crores of rupees as also the fate and future of all the Resident Members of the Society. Once the property is handed over to the Builder / Developer, the Society has only legal documents in their hand to rely upon, in case of any adverse situation in accomplishing the successful task of the redevelopment. Our approach in respect of drafting / analyzing all the legal documents pertaining to the redevelopment is scientific and systematic.
After precise and meticulous study, these drafts after methodically vetted, scanned and scrutinized theoretically by us and the gray areas / pitfalls and shortfalls are exposed and a written report is given to our Client Society apprising them the areas of alerts and awareness and impress upon the Builder / Developer to include / provide due coverage before finalizing all the legal documents of redevelopment in corporate interest and safety of the Societies to achieve the desired results.
The Housing Societies must study and understand and try to forestall the pitfalls under Financial / Legal and Technical areas to be termed in Development Agreement benefiting the Members as many of these areas are conveniently ignored / not documented in the Development Agreement and we impress upon the Housing Societies to impress upon and compel the Builder / Developer to add those ignored conditions in Development Agreement in the corporate interest of the Society to protect their hard earned homes.

We are prepared to provide in most flawless and impartial manner, our all-round competent consultancy services pertaining to redevelopment project of your Society including required comprehensive guidance online. All our Client Societies in Mumbai and Maharashtra have been successfully benefited by our all-round and timely assistance for successful completion of their redevelopment projects.  

At any point of need, our association with you shall remain online for any legal advice / clarification all the way through which would benefit your Managing Committee while negotiating the consequential and important terms with the Builders / Developers, sorting out multifaceted or intricate issues pertaining to the redevelopment project of your Society.

Dilip Shah
Senior Counselor and Analyst for Redevelopment of Housing Societies and Society Laws

Tuesday, February 28, 2012



What is a Building Completion Certificate (BCC)?
Once the project is completed, the Local Authority inspects the premise on the basis of the Building Plan and awards the Building Completion Certificate if it is satisfied.

During the construction of a building, the Builder is supposed to get No-Objection Certificates from various Departments of the Local Development Authority for basic amenities such as water and electricity, stating that the building construction is not violating any norms in the area.

According to Apartment Acts of various States, after completion of a project, it is mandatory for the Builder or the owner of a Stand-Alone Property to get a Building Completion Certificate from the Local Authority to ensure the supply of basic amenities.

The Builder then applies to the Departments yet again along with a copy of the Building Completion Certificate to get water, electricity connection and other basic amenities for the project.

Provisional Building Completion Certificate:

Sometimes Builders get a Provisional Building Completion Certificate to hand over the possession of Apartments in a newly constructed project. In the meanwhile, the Builder finishes the remaining work such as painting and landscaping. However, the Provisional Certificate is valid only for six months. After the expiry of this period, the Builder has to apply for the Final Building Completion Certificate.
Why is it important?

Apart from ensuring that basic amenities, such as water, electricity and drainage system are provided, a Building Completion Certificate ensures that the Builder/Owner has constructed the building according to the approved Building Plan. Without obtaining the Building Completion Certificate, the Builder cannot give the possession of the house to the buyer.

The Builder has to construct the building as per approved plan without any deviations and violations. Issuing of Building Completion Certificate will ensure that the Builder has constructed the building as per Approved Plan.
If the Builder cannot get the Building Completion Certificate, there could be trouble in terms of delay in possession. For instance, in the Commonwealth Games Village (CWG) in New Delhi, it was found during the process of awarding the Building Completion Certificate the Builder had violated norms of the Floor Area Ratio Limit by constructing on a larger area than mandated. While the Government is yet to decide on awarding the Building Completion Certificate and Regularization of the extra area, buyers in the project are waiting for possession.

What you can do?

In cases where your Builder has been unable to procure a Building Completion Certificate, you can directly ask the Local Authority to hand over the possession to you. You can apply to the Authority independently by forming a Residents’ Welfare Association (RWA). The Authority then becomes responsible to answer your application within 40-50 days of your applying. If the Authority also fails to offer you possession, you can approach the Court.

Dilip Shah & Associates
Senior Counsellors and Analysts for Redevelopment of Housing Societies
9819825752, 3241153

Sunday, July 3, 2011


-( Aftermaths of Development Agreements executed with Societies)

Now a day, the Redevelopment proposals are grossly mooted by the Developers in old and dilapidated Cooperative Housing Societies in Mumbai Central and Suburbs.

As per the Plot area and the loadable TDR/FSI in permissible ratio i.e. 1:1, 1:1.3, 1:2 or 1:2.5 or as applicable, the Developers begin discussions with the Office Bearers/Architect/members of the Societies for the Redevelopment of Society’s property.

The Developers offer the members a bigger and posh dream houses with additional carpet area/rooms over the existing ones, displacement compensation for alternate accommodation, corpus fund and eye-catching amenities etc.

The Developers construct either additional flats or commercial joint on the remaining area available at their disposal on the same plot and sale it in open market to earn the surplus. The Development Agreements and the Power of Attorneys are finally executed between the Societies and the Developers to complete the projects.

Initially, to obtain the IOD/CC from MCGM, the Developers submit the plans to MCGM as per the agreed terms in the Development Agreements executed with the Housing Society.

It has been often noticed that thereafter, during the process of redevelopment, the terms of Development Agreements as agreed upon, the unhealthy attempts with ulterior motives are made by the Developers to twist and grossly violate the rules of MRTP and DCR by unlawful planning and constructing additional/unauthorized areas that are beyond their 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 this stage, the Developers submit the amended plans for additional structures to MCGM which are not in conformity with the Development Agreements executed and additional/unauthorized constructions are carried out without informing beforehand or seeking formal approval from the Society's architect/Society as per the rules and bye-laws or execution and registration of further necessary Agreements to this effect.

The ill- observance of MRTP/MCGM/DCR rules and guidelines are overlooked by the sympathetic officials of the MCGM and the plans so submitted, are sanctioned without verifying the eligibility or its conformity with the Development Agreements.

The Projects are completed and the Occupancy Certificates are issued without the proper inspection neither carried out by the MCGM officials nor taking pains to verify whether the actual measurement of the constructed areas tally with the final plans submitted.
It is further noticed that upon the completion of the projects, these additional/unauthorized constructions are silently regularized at the last moment by executing the Supplemental Agreements with the Office Bearers of the Societies with green handshakes/offering them handsome rewards.

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.

The gullible members of the Societies, unaware of the laws and rules, are taken for a ride by the Developers and the satisfied Office Bearers together with their interested associates once the projects are completed and since the members aim to get themselves re-housed in the redeveloped premises and on the other hand, the hidden financial benefits of such unauthorized/additional areas go to the Developers.

There are numerous news clips in various news papers with regard to Mumbai High Court’s reprimanding and lambasting severely the MCGM for violation of Development Control Act & Rules and are instructed to immediately issue the demolition orders to pull down such unauthorized/additional constructions and take stringent action against the erring officials for their lapses. Reference is necessary for the latest news appeared in Times City of Times of India Dated 12th Sept.2008-Illegal Constructions: HC blasts MCGM and MHADA for illegal and unauthorized constructions on Andheri-Versova- Jogeshwari belt have come under scanner of the Mumbai High Court.

Under the Development Control Rules, it has been stated that in case of unauthorized development, the Commissioner shall - (a) take suitable action which may include demolition of unauthorized works as provided in section 53 of the MRTP Act, 1966 and the relevant provisions of the Mumbai Municipal Corporation Act, 1888 and shall take suitable action against the licensed technical person or the architect concerned.

Upholding the law for the welfare of the community is more valuable for society than extra heap of cement and concrete. Plenty of judgments are overlooked by greedy Developers to earn extra money.

The members of the Cooperative Housing Societies in Mumbai are required to be vigilant
while handing over their Societies for redevelopment to such Developers who, by rewarding the Office Bearers and their associates, carry out the unauthorized/additional constructions for their hidden financial gains which they are not entitled to. When unauthorized constructions beyond the laws are the statutory norms of such Developers rather than the exception to the rules, the strict laws of the land have always to be upheld by taking stern actions under the laws.

Dilip Shah
Counselor and Analyst for Redevelopment of Housing Societies