By I C Naik
Houses in Mumbai have started falling crushing even the innocent passersby. The cooperative housing societies are having relatively new buildings and hence the cases implicating society managements are few so far. The office bearers getting arrested has also been a rarity. Things are changing.
In a recent case of collapse of Piyush building in Dahisar (E), killing seven people, Former Chairman- Current Secretary were arrested. Ex-Chairman Bhikabhai Dudhat (55) and present secretary Babubhai Patel (49) were however later released on bail. These two face charge of negligence along with developer Nemji Gangar and security guard Maansingh Lamsaal.
“The building was handed over to the managing committee by Nemji Gangar in 1997. The managing committee had since been looking after the upkeep of the structure. Under stricter norms of inspection by BMC in 2010, the BMC sent a notice to the society advising that the structure needed urgent repairs.
The building was then evacuated by the society with a commitment to undertake redevelopment but due to a dispute, for the next three years there was no progress whatsoever. This finally resulted in the structure crashing down” reports Mumbai daily quoting a BMC officer. “The management was aware that the structure was dangerous, yet it did not pull it down.” It is also reported that the police might soon arrest Nemji Gangar if any evidence showing his involvement is found.
Guard Mr Lamsaal, who lost three family members in the crash, has been booked for discreetly allowing them to stay in the vacant structure. The society had hired him to keep people out of the building instead he let them occupy. He is in his hometown in Nepal and will be arrested when he returns to India. This is an eye opener for the office bearers of the cooperative housing societies.
They have to be vigilant not only on proper maintenance but they have to prepare themselves also for understanding the nitty-gritty of Development Regulations. Development Regulations under a circular issued on 6 1 2009 under Section 79 of the M. C. S. Act 1960 lays down mandatory requirements on redevelopment of properties of cooperative housing societies. Model Bye Laws 2009 has included specific Bye Laws concerning redevelopment and norms of frequency of structural audit.
In a recently reported decision that highlights the importance of registration of redevelopment deals, the Supreme Court (SC) rejected a petition by residents of a redeveloped building, who challenged the developer’s decision to sell flats to other than the original members. The reason for the builder getting way with the bonanza, was that the deal between the residents and the developer was not registered.
In the absence of this agreement of sale, which should have been registered as provided under the Maharashtra Ownership of Flats Act (MOFA), 1963, the residents do not have any right on the flats as per the Apex Court in a case of the residents (O P Cooperative Housing Society, Vashi), of Mumbai. On September 29, 1992 the developer entered into a deal (Letter of Intent-LOI) with the residents:
(i)The developer was to sell flats in the new building to the residents for Rs 4.40 lakh (per flat); after receiving the full price against an agreement of sale at the time of possession;
(ii) If a resident failed to pay two or more installments, the developer would levy a fine or cancel the flat.
A dispute between some residents and the developer went to the Bombay high court (HC). That increased the redevelopment costs. So the builder increased EMI of Rs 22,000 to Rs 38,500. As some residents insisted to pay Rs 22,000 the developer cancelled those allotments and disposed off their flats to outsiders.
In 2005, the HC directed the developer to refund amounts received from the original residents with interest, but did not cancel the flats sold to outsiders since the Deal was not registered.
The SC upheld this decision.