Redevelopment – Important Points

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Redevelopment – Important Points

Since the redevelopment work is of common interest, it requires the major decisions to be taken by the Society with the consent of General Body. Necessary Resolutions should be approved in the General Body Meetings
The Government of Maharashtra has issued specific guidelines to streamline the process of redevelopment so that the problems in the redevelopment can be eliminated at the initial stage resulting in the reduction of the time required for the redevelopment process.

 

The Society should hire a professional and competent advocate who should be careful in drafting the Redevelopment Agreement and should not leave the same to the Developer. The terms and conditions of the agreement should legally and practically take care of the in interests of the Society and each of its members. While drafting, one needs to visualize every possible setback and should provide answers and remedies against possible eventualities so that the Builder’s interest in completing the project continues till the end.

 

The Bank Guarantee should be drafted simultaneously along with the Development Agreement. The draft of the Bank Guarantee should be simple and not tied up with conditions. It should state that except calamities like floods, earthquakes or a war, the reconstruction will be completed in the specific time or at the very least, within the grace period, Failing this, the Guarantee can be invoked. The Society should take PDCs for the future rent and compensation at the time of vacating. To ensure that the Builder completes the reconstruction project, he should be permitted to give possession of his sell portion only after offering possession to the existing flat owners.

 

Utkarsh Jani


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