Redevelopment often promises significant benefits, but the transition can be challenging, especially for senior citizens and financially constrained members of a cooperative housing society (CHS/Society). In such cases, members should lean on the Society's documented terms and seek external advice, ensuring they understand their rights and options well. Additionally, when internal disagreements or legal disputes disrupt the Society affairs, consulting bodies like the Maharashtra Housing Federation or legal experts can provide stability and direction.
This week, I will address various complex issues that arise during and after the redevelopment process, particularly when Society committees face unforeseen challenges. From delayed corpus payments to management gaps due to mass resignations, these situations highlight the critical importance of clear communication, formal agreements and access to guidance from trusted sources.
Problems and Difficulties Post-Redevelopment
Question: I am a senior citizen widow living with my unmarried daughter. Our Society in Mahim undertook self-redevelopment, and we vacated our flat in October 2021. We were paid monthly rent for 2 years and 3 months, then moved back in at the end of May 2024 when the redevelopment was completed. The architect and builder are not responding and tell us to contact the Society committee. The secretary says there is no corpus fund due to incurred losses, while the treasurer claims it will be calculated later. Additionally, redevelopment charges were deducted from our maintenance bill over the past nine years.
We also owe Rs142,000 in outstanding maintenance bills. During the lockdown, I faced financial difficulties and could not work, and members even prevented us from selling our flat. We are struggling to make these payments and were hoping that receiving our corpus fund would help us repay the dues. What can we do in this situation?
Answer: This is an unfortunate situation. In such cases, it is essential not to rely on verbal assurances. You should review the agreed-upon written terms regarding the redevelopment project between the Society and its members. Without these details, providing specific guidance is also challenging. As for selling your flat, remember that no society permission is needed for such a transaction, so you are free to proceed as you wish.
In case you have further doubts or need clarity on the terms and conditions of the agreement between the Society and its members, you can call Moneylife Foundation during business hours at these numbers 022-35131664 or 022-35036925 for an appointment to consult an expert. The consultation and guidance is completely free, but please ensure that you carry all relevant documents to your appointment, as it would not be possible to provide accurate guidance without a reading of such documents first.
Handling Society Affairs After Mass Resignation of Committee Members
Question: Our Society held its annual general meeting (AGM) on 29 June 2024, but after the meeting, all committee members submitted their resignations, leaving other agenda items unfinished. According to the bye-laws, the AGM should be held in September. The Society and I informed the district deputy registrar for the cooperative society in Pune, but no action has been taken. Can the Society still handle routine work? Please provide guidance.
Answer: Until a new managing committee is appointed or an administrator is assigned, the existing committee is responsible for managing the Society's day-to-day affairs. This is the usual practice for continuity. However, since the matter is under review by the sub-registrar for cooperative societies of Pune, as you noted, it would not be appropriate for us to comment further based on the minimal information that you have shared in your query.
Redevelopment Stalled Over Testamentary Dispute of A Flat
Question: Our Society is in advanced negotiations for redevelopment with a builder. However, a dispute has arisen over a flat due to an ongoing testamentary suit between siblings after the owner's passing. Attempts to reach the other legal heir have gone unanswered. What steps can be taken to move forward with the redevelopment paperwork while the suit is still pending?
Answer: It is unclear how the Society knows the testamentary suit or if it is a party to those proceedings. The specifics of your role—whether as a owner and member, secretary, or relative of the flat owner—are also unclear. It may be beneficial for the Society to consult the Maharashtra Housing Federation (if affiliated) for further guidance on handling redevelopment under these circumstances. They can offer valuable advice at no additional cost.
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.)
