Cooperative Housing Society
& Redevelopment Cases

Real Estate Disputes

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Cooperative Housing Society & Redevelopment Cases

Descriptive Text

1. Legal Framework for Cooperative Housing Societies in India

Key Laws Governing CHS
  • Cooperative Societies Act (State-Specific) – Governs registration, management, and functioning of CHS.
  • Maharashtra Cooperative Societies Act, 1960 (MCS Act, 1960)
  • Gujarat Cooperative Societies Act, 1961
  • Karnataka Cooperative Societies Act, 1959
  • Real Estate (Regulation & Development) Act, 2016 (RERA) – Regulates real estate transactions, including redevelopment.
  • Maharashtra Apartment Ownership Act, 1970 – Governs individual apartment ownership in societies.
  • Maharashtra Housing and Area Development Authority (MHADA) Act, 1976 – Governs redevelopment of MHADA societies.
  • Development Control & Promotion Regulations (DCPR) – Regulates FSI (Floor Space Index) and construction norms.

2. Redevelopment of Cooperative Housing Societies

Steps in Redevelopment
  • General Body Meeting (GBM) – Society members must approve redevelopment (minimum 51% consent under recent Maharashtra rules).
  • Appointment of Developer/Builder – Transparent bidding and selection through tender process.
  • Agreement & Development Plan – Execution of Development Agreement with timelines and financials.
  • Approval from Authorities – Municipal Corporation, MHADA, RERA, etc.
  • Vacating Premises & Temporary Accommodation – Developer provides alternative housing or rent compensation.
  • New Construction & Possession – Members get their flats with additional space/amenities.

3. Landmark Cooperative Housing Society Redevelopment Cases in India

(A) Supreme Court & High Court Cases
  • Fernandes v. State of Maharashtra (2013)
  • Jayantilal Investments v. Madhuvihar CHS (2007)
  • Zoroastrian CHS v. District Registrar (2005)
  • Shri Sai Darshan CHS v. State of Maharashtra (2019)
  • Kalpana CHS v. Mumbai Municipal Corporation (2021)
(B) RERA Cases & Builder Accountability
  • Vasant Galaxy CHS v. Developer (2019, MAHARERA)
  • XYZ CHS v. Builder (2022, MAHARERA)
  • Manohar CHS v. Rustomjee Developers (2020)

4. Common Disputes in Redevelopment Cases

  • Consent of Members
  • Delay in Possession
  • Rent Compensation Issues
  • Change in Plans
  • Breach of Agreement
  • Fraudulent Agreements

5. Legal Remedies for Housing Societies in Redevelopment Disputes

(A) Approaching RERA

Members can file a complaint with RERA for violations by builders.

(B) Consumer Court (NCDRC & State Commissions)

Cases can be filed under Consumer Protection Act, 2019.

(C) Cooperative Court & Registrar of Societies

Societies can approach the Registrar of Cooperative Societies.

(D) Civil & High Court

For disputes involving contract violations, fraud, or large-scale disputes.

6. Government Policies & Recent Developments in Redevelopment

Maharashtra Government Amendments (2022)
  • Reduced minimum consent for redevelopment from 75% to 51%.
  • Introduced stricter builder penalties for delays.
  • Societies can appoint PMC (Project Management Consultants) for transparency.
Delhi Redevelopment Rules (DDA Policy, 2023)

Incentives for old societies opting for self-redevelopment without a builder.

Self-Redevelopment Scheme (Maharashtra & Karnataka)

Societies can redevelop properties without a builder using government financial assistance.

7. Conclusion

Cooperative Housing Society redevelopment is beneficial but fraught with legal challenges. Societies must ensure:

  • Transparent selection of builders.
  • Signing of a watertight Development Agreement.
  • Project registration under RERA for legal protection.
  • Action against fraudulent builders through legal channels.