A project management consultant (PMC) is crucial for success in redevelopment projects. This consultant, typically, includes a team of architects, civil engineers and legal advisers, each bringing specialised expertise to the table.
Architects play a pivotal role in the process and are responsible for assessing the financial feasibility of the project, analysing the technical proposals from developers, verifying the building plans prepared by these developers and coordinating the municipal processes involved in the redevelopment.
On the other hand, civil engineers focus on the technical and quality aspects of the construction. They review the structural drawings of the proposed building and monitor the quality of construction on-site to ensure it meets the required standards.
Legal advisers are integral to navigating the legal landscape of redevelopment. They prepare development agreements for cooperative housing society (CHS/Society) members and review other legal elements of the proposal to ensure compliance and protection for all parties involved.
An adept project management consultant can guide the Society through the entire redevelopment process. Their expertise ensures members receive the maximum benefits from the builder and are safeguarded against potential issues or exploitation throughout the redevelopment journey.
Conflict of Interest in Consultant Appointed for Redevelopment
Question: In a CHS that is undergoing redevelopment, can the Society appoint as its legal consultant a firm whose managing committee member is partner or employee of the said firm. Please advise.
Answer: For redevelopment of a society's building, a team called the project management consultant (PMC) should be employed. This PMC consists of
1. a local municipality-recognised architect or structural engineer;
2. a chartered accountant (CA), who will maintain an escrow account of the building. An escrow account means an amount that was given by the flat buyer should be kept in such a bank account that was jointly maintained by the CA, architect or structural engineer, and the managing committee of the Society. Amount from this account is withdrawn when all these joint account-holders approve it.
3. An expert person will coordinate with different municipal offices.
4. to appoint PMC for your project, such company's at least three completed projects should attest to have received an occupancy certificate (OC) from the local municipal corporation.
5. PMC should have at least two projects in progress.
6. PMC's fees should be decided by the Society which is dependent on the construction cost of your Society's completed project.
7. If there is any adverse structural change in the PMC team, then to remove the PMC, an appropriate clause should be put in the memorandum of understanding (MoU).
While no specific bye-law restricts the appointment of a PMC based on conflict of interest, it would perhaps be in the best interest of your Society to appoint another company where such a conflict does not arise.
Restricting Siblings from Selling Flat in the Absence of Will or Nomination
Question: One flat was in the name of my parents, but now both have expired. We are a total of five brothers and two sisters. Now, I want to transfer the flat in my name, but my parents were illiterate and have not made any Will or nomination. My other four brothers and the two sisters want to sell the flat without my consideration. Can Society issue any kind of share certificate or consent without my signature, as I am one of the legal heirs of my deceased parents? Please advise.
Answer: I am presuming that your flat is located in Mumbai, under the jurisdiction of BrihanMumbai Municipal Corporation (BMC). If so, all five brothers and the two sisters should together make a testamentary petition in the Bombay High Court. If the flat is outside the BMC area, then this testamentary petition should be made in a district court.
The concerned flat cannot be transferred without a succession certificate, and it cannot be sold by anyone without the Society's NOC (no objection certificate) (which is again dependent on the succession certificate to prove ownership rights). To safeguard your interest, any of the siblings can also make a testamentary petition while making the others a party.
Registering Details of a Redeveloped Flat
Question: My flat is in a housing society in Annanagar, Chennai. The building with 48 flats had been given for redevelopment to a builder and now redevelopment is complete. The details of the redeveloped flat are to be registered (flat number, size, area, etc) Can you please guide on this procedure?
Answer: For your new flat in the redeveloped building, a permanent alternate accommodation agreement (PAAA) should be made using the Chennai municipal corporation approved plan of said flat. This agreement will need to have stamp duty paid against it and should also be registered with the sub-registrar of assurances office.
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.)
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