Managing a cooperative housing society (CHS/the Society) comes with its fair share of challenges—be it redevelopment issues, builder disputes, conflicts over commercial use of premises, or procedural irregularities. While CHSs are governed by specific bye-laws and legal provisions, misunderstandings and lack of awareness often lead to disagreements among members. In such cases, knowing your rights and the correct legal procedures is crucial to resolving disputes effectively.
This week, we address some pressing concerns related to redevelopment irregularities, builder non-compliance, and the Society's opposition to commercial use of residential flats. Each of these situations underscores the importance of due diligence, adherence to legal processes and proactive decision-making to safeguard the interests of Society members.
Irregularities with Redevelopment Process
Question: We are a registered CHS in the western suburbs of Mumbai and I am the chairman. During my absence of six months, some members proceeded with the redevelopment process. These members now insist that we should appoint one elderly member as joint or vice-chairman. Since the bye-laws do not mention this position, can we appoint one?
Additionally, we have not obtained a 'feasibility report' for the redevelopment and no one has raised any objections so far. Can we proceed without this? Lastly, the minutes of various meetings that took place are not in line with the usual standard practice. What should we do about this?
Answer: You cannot proceed with redevelopment without the conveyance of your Society's building and land. Before any redevelopment, it is crucial to conduct a structural audit of your Society's building by a local municipality-recognised architect, as per Bye-law No. 76. If redevelopment is deemed necessary, the Society should appoint a project management consultant (PMC) firm which will include professionals such as a local municipality-recognised architect, structural engineer and auditor.
A tender should be called for the redevelopment of the Society's building. Moreover, each member should be entitled to a minimum of 405sqft carpet area for a 1BHK flat if their existing flat is less than or equal to 300sqft carpet area.
Given the current procedural gaps, it is advisable to file a complaint with the deputy registrar of cooperative societies (DRCS) in your area against Society members not following the proper procedures.
Builder Failing To Cooperate during Redevelopment
Question: My Society is undergoing redevelopment and is almost complete; we are awaiting the occupation certificate (OC). The builder has called for a meeting soon to decide the monthly charges applicable to all old existing members. I would like to know how long the builder is responsible for paying all maintenance charges, property taxes, water charges and other municipal taxes. Before redevelopment, our Society did not have the conveyance in its name and the land is owned by the builder himself. There is a concern that he may exploit members as he sees fit.
Additionally, we have yet to receive 50% of the corpus fund. The builder has also defaulted on paying brokerage for the third year and has not provided the 10% increment as committed in the permanent alternate accommodation agreement (PAAA). Some promised amenities have also not been delivered in the new building. Please guide us on how to proceed.
Answer: You should write to the builder, requesting the conveyance of the land and building once all members have taken possession of their new flats. If the builder does not respond or delays the process, your Society can initiate the deemed conveyance procedure. For detailed guidance on this, you can visit Moneylife Foundation's office on a convenient Wednesday after scheduling an appointment with an expert. You can call on the landline numbers of the Foundation during business hours for an appointment - 022-35131664 or 022-35036925.
Regarding the unpaid brokerage and the increase in rent for the alternate temporary accommodation, it is advisable to engage a competent advocate and take the matter to the consumer court.
Extension of Existing Commercial Premises into Residential Flat
Question: I own a first-floor flat with an attached personal terrace in a CHS. Below my flat is an existing dental clinic and the owner is interested in purchasing my flat to expand the clinic. The clinic's patients and vendors will not use the building's staircase or lift, nor will they enter through the Society's main gate.
The doctor plans to construct an external staircase from the ground floor to access the terrace and flat. This staircase will originate from an area outside the Society's premises. However, the members of the Society are not cooperating and do not want any commercial activity on the first floor. To my knowledge, dental clinics, advocates and chartered accountants are permitted to operate on the first floor and are not considered commercial activities. Please guide me on this matter.
Answer: The flat on the first floor can be integrated with the ground-floor dental clinic by constructing an internal staircase and closing off the flat's existing entrance with a wall. It is advisable to consult a municipality-authorised architect to prepare a plan for this extension. Once the plan is ready, you should formally submit it to the Society for consideration.
If the Society opposes the extension, you may need to file a civil case through your architect in the appropriate court. With the court's intervention, you may be able to obtain the necessary permissions to proceed with the sale and extension of the clinic.
NOTE
We will not be answering queries posted in the comments. Only questions sent through the Moneylife Foundation's Legal Helpline will be answered. If you want to seek guidance or ask questions to Mr Shanbhag, kindly send it through Moneylife Foundation's Free Legal Helpline. Here is the link: https://www.moneylife.in/lrc.html#ask-question
Disclaimer: The guidance provided in these columns and on our Legal Helpline is on the sole basis of the facts provided by the reader/questioner and does not amount to formal legal advice in any form whatsoever.
(Shirish Shanbhag has an MSc in Organic Chemistry, a Diploma in Higher Education, and a Diploma in French and has completed his LL.B. in first class in 2021. Before his retirement, he was a junior college teacher at Patkar College from July 1980 to May 2012, teaching theoretical and practical chemistry. Post-retirement in 2012, he started providing guidance and counselling to people on several issues, specifically focusing on cooperative housing society-related matters. He has over 30 years of hands-on experience in all matters about housing societies and can provide out-of-box solutions for any practical issue.)
