[Opinion] Redevelopment Projects – Majority Rules, Minority Squeezes!

Redevelopment has been buzz word as the population is expanding exponentially however the land is limited. The redevelopment is mostly a win-win for the existing residents as well as developer. The excess built up area helps the developer to monetize the excess area and also gives the existing better structure. Sometimes better valuation and improved infrastructure helps improvised project.

This article is an attempt to discuss the issue regarding the consent of members and applicable provisions relevant to redevelopment of the Building in the State of Gujarat. Though this judgement is State specific but the law laid shall go a long way in overcoming the issue of dissenting members in the case of redevelopment.

Issues

1. Whether permission or consent of 75% existing members of the society is sufficient for redevelopment of the building?
2. Does the member of the society can be evicted, in absence of any provision under the Gujarat Ownership Flat Act, 1973 and Gujarat Ownership Flat Rules, 1974?
3. Whether the Corporation has any power to evict the members from the society or his flat?
4. Does handing over the possession of flat for redevelopment is the eviction or it is mere shifting for temporary basis?
5. Does right under Article 226 can be exercised to seek relief for redevelopment of the project.

Provisions

Section 41-A of the Gujarat Ownership Flats Act, 1973 enables the re-development of a building

“41A. Re-development of flats and apartment. –

Notwithstanding anything contained in this Act, any work in relation to the re-development of a building can be carried out on such terms and conditions as may be prescribed, after obtaining the consent of not less than 75 per cent. of the flats owners of such building:

Provided that, in respect of such building, –

(i) a period of twenty – five years must have been completed, from the date of issuance of permission for development by the concerned Authority; or

(ii) the concerned Authority has declared that such building is in ruinous condition, or likely to fall, or in any way dangerous to any person occupying, resorting to or passing by such structure or any other structure or place in the neighbourhood thereof.

Explanation. – For the purpose of this section, the expression “redevelopment” shall be the meaning as assigned to it in relevant Development Control Regulations.”

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