Housing Society Problems and Solutions: From Tenants to Builders, Getting the Basics Right

Shirish Shanbhag 24 April 2025

Consumer Interest

Living in a cooperative housing society (CHS/the Society) often comes with a unique set of challenges—be it navigating paperwork, dealing with redevelopment issues, or ensuring fair and lawful management practices. Questions frequently arise about what is permissible, what is required as per bye-laws and where responsibilities lie. While CHS are meant to function democratically and transparently, members often find themselves confused or caught between unclear rules and arbitrary decisions. Each week, I try to demystify some of these concerns and offer guidance grounded in legal and practical understanding.

Registration of Permanent Alternate Accommodation Agreement (PAAA) for Joint Owners

Question: I have a flat that is currently under redevelopment. The flat is jointly owned by me and my sister and the share certificate also mentions both our names as equal owners. However, during the registration of the PAAA, my sister’s name was left out and the agreement was made only in my name. I now wish to rectify this so that we are both recorded as owners of the redeveloped property. What should I do?

Answer: It is not permissible to register the PAAA in your name alone while excluding your sister, since all original owners must be included. Now, to rectify the situation, you can execute a gift deed transferring 50% of your share in the flat to your sister. This will require payment of applicable stamp duty and registration charges for the gifted portion.

Appointment of Builder for Redevelopment

Question: The North Mumbai CHS, in which I live, has voted for a developer (for its redevelopment) who is not from Mumbai and has no previous redevelopment experience in the city. More interestingly, the developer selected is a subsidiary of a large infrastructure company based in Hyderabad, which, according to the parent company's latest annual report, has already pledged 65% of the subsidiary’s shares to a consortium of lenders represented by SBICAP Trustee. Was this an advisable choice for the Society going for redevelopment? What is your view about my Society's choice of builder? The alternative developer who lost the vote was a local builder with a solid track record in redeveloping societies in Mumbai’s western suburbs.

Answer: A developer who has never done construction work in Mumbai should not have been given the redevelopment work in the first place. You should call for another special general body meeting (SGM) and award the redevelopment project to the local builder who has a proven track record in the city.

Need for a Release Deed, in Transfer of a Jointly-owned Flat

Question: I hold a flat jointly with my father who was the second holder. He has now passed away. To get his name deleted from the share certificate, do I need to get a release deed done? I have two sisters who are married and have not claimed any right in the flat, as it was purchased from my own funds.

Answer: Yes, to get the late father’s share in your jointly held flat transferred entirely in your name, you will need to execute a release deed. Your two sisters and you must jointly execute this release deed on a Rs500 non-judicial stamp paper. If your mother is alive, she will also have to be a part of this release deed along with your sisters.

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.)

Comments

User

orientalhabitat

3 weeks ago

Sir,

My society insists on personal appearance by members in all meetings and denies ONLINE attendance. Is the personal appearance absolutely mandatory? Even in this digital age? Specially when most companies conduct their AGM, SGM, EOGM online these days? Is there a rule or method through which online conduct of these meetings, along with personal attendance, can be made applicable in cooperative housing societies in Mumbai?

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