Only Majority View To Be Considered During Redevelopment Says Mumbai High Court
The Bombay High Court has given an important ruling that only the decision of the majority members of a housing society must be taken into account while considering redevelopment. It said that the minority percent of the non-cooperating members cannot halt a redevelopment project.
The ruling came in light of the opposition a mega-redevelopment project faced in Vile Parle. About 27 families were opposing the plans of redevelopment of the flats. The court directed that this found to be a minority and could be evicted if necessary. It said that the decision taken by the majority percent of the members of the housing society will be final and binding on the non-cooperating members.
Background
With plans of redeveloping old and dilapidated buildings, Disha Construction had taken up a project in Vile Parle (East) for the flats in Datta Ramanand housing society. The housing society complex consists of four buildings with 120 flats. The developer was chosen in 2010 by the society to redevelop their complex. An agreement was signed between the majority members of the housing society and the developer for the work to begin. Accordingly, 93 flat owners vacated their flats and started staying in the temporary accommodation allotted to them. The developer also spent over Rs. 27 crore for various works and rental payment for the transit accommodation.
However, with the rehabilitated flats set to be reduced by 80 sq.ft, 27 flat owners refused to sign the agreement.
Court order
The court maintained that the agreement between the housing society and the developer was fair. It directed the non-cooperating flat owners to sign the agreement and vacate the premises by October 3rd at the latest. It directed the developer to pay any remaining dues and stated that forceful action could be taken against any non-cooperating member of the society if they didn’t vacate the flats by the deadline. The High Court justice said that the remainder of the flat owners had no problems with the agreement and had vacated the premises about a year ago. They were now staying in the transit accommodation that was allotted to them awaiting new ownership premises once redevelopment was complete, and the facilities they were getting could not be denied due to the minority.
Mumbai redevelopment projects
The Maharashtra Housing and Area Development Authority (MHADA) identifies certain housing units for redevelopment. These units include houses built before 1970 on the island city and units under dilapidated conditions. Most of these residential units are under bad physical condition and are prone to collapse unless redevelopment work is carried out. According to the tenants ownership scheme under the MHADA Act, at least 70% of the tenants can come together and form a cooperative housing society. The Datta Ramanand housing society in Vile Parle is one such society which is undergoing redevelopment.
Effects of redevelopment on real estate
Redevelopment of flats means a new construction of the existing flats. The redeveloped flats also involve new amenities and some shop spaces. This boosts up the value of the properties, capital value of the locality and contributes to the overall price appreciation of a total area. With capital values in Vile Parle around Rs. 23,850 per sq.ft, it can be expected to go up in the future as an effect of redevelopment.
