Housing society redevelopment projects often bring a mix of hope and anxiety for residents, as legal and financial complexities can lead to confusion and disputes. This week's queries highlight some of these pressing concerns—from questionable developer demands and unapproved modifications in water connections to challenges in securing rightful ownership in a redevelopment process.
One reader questions the legality of a developer's insistence on using a separate memorandum of understanding (MoU) for financial terms rather than incorporating them into the permanent alternative accommodation agreement (PAAA). Another raises an alarming issue where a resident has installed an additional water connection and a valve restricting water flow to the flat below. Lastly, a group of co-owners faces resistance from their cooperative housing society (CHS/Society) which refuses to include all their names on the share certificate, despite a valid transfer deed.
If you are dealing with similar issues, understanding your legal rights and the correct course of action is essential. Read on for expert advice on tackling these housing society challenges effectively.
Redevelopmnent Concerns
Question: Our building in Sion, a cessed property with a landlord and tenants, is set for redevelopment. The intimation of disapproval (IOD) has been received and only the development agreement (DA) and PAAA remain to be signed.
The developer claims that financial aspects—such as rent for alternate accommodation, corpus fund, and transport charges—will be detailed in a separate MoU rather than in the PAAA. He argues that including these terms in the PAAA would incur stamp duty, which would have to be paid by the tenants.
Is this claim valid? How legal and safe is the MoU? If stamp duty must be paid, what is the applicable percentage and who is responsible for bearing the cost?
Answer: First and foremost, for your own protection, you must obtain a copy of the no objection certificate (NOC) issued by the chief officer of the Mumbai Building Repairs and Reconstruction Board (MBR&RB), a regional unit of MHADA.
The developer's claim is not appropriate. Typically, it is the builder's responsibility to handle the registration process. You and your fellow tenants must remain united and leverage the Right to Information (RTI) Act, if necessary.
The applicable stamp duty rates change as per government directives, so it is advisable to check the latest rates with the relevant authorities.
Manipulating and Controlling Flow of Water through Pipes
Question: A member on the 4th floor of our 15-floor tower has installed a second water pipe in addition to the builder's existing water connection. This means he now has two water connections. He has also installed a valve that controls and restricts water flow to the flat below him. I reported this issue to the Society secretary 50 days ago, but no action has been taken. I live on the 3rd floor of the tower. What can I do?
Answer: Since you have not shared any correspondence related to your complaint, I will assume that your Society follows the 2015 bye-laws, as amended up to December 2019. Based on this, you can take the following steps:
1. Issue a legal notice to the concerned parties. If they fail to respond, you may approach the Cooperative Court with two applications,
a. One for appointing a court commissioner to inspect the site and submit a factual report.
b. Another seeking interim relief until the dispute is resolved.
2. Alternatively, you may also approach the consumer court.
Given the legal complexities, I strongly recommend consulting an experienced lawyer rather than handling the matter alone.
Clarity on Letter of Allotment for Redevelopment
Question: Our CHS is set to undergo redevelopment. We are six co-owners with a registered transfer deed executed after receiving the letter of allotment (LoA). However, the Society insists that only one name can be included in the share certificate. Can we not have all six names listed in equal proportion?
Answer: You have not specified whether all six co-owners have formally applied for membership transfer by submitting the necessary documents, including an attested copy of the LoA, or when this application was made. If you have already applied and the Society has not processed it within three months, you can approach the deputy registrar of cooperative societies (DRCS) to seek recognition as deemed members.
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.)
