Question: My uncle (aged 79 years) and a few senior citizens in the age group of 70 to 90 are staying in Kandivali MHADA MIG colony. The Federation of their Societies had appointed a Developer way back in February 2007. The Re-development Agreements with individual societies were executed with this Developer after eight years in 2015.
Some societies had to hand over their buildings to the developer and the developer demolished these buildings in 2018-19. The IOD and CC obtained for re-development of these building has since lapsed and not renewed by the developer till date. The developer is not in a position to inform these societies as to when he can commence work and when he will be able to hand over possession of their new flats. The transit rent payment for the buildings demolished is also outstanding for quite some time.
Under such circumstances can the Societies terminate the developer appointed by the Federation of these Societies? Do these Societies need MHADA's permission for such termination and for appointment of new developer? If the earlier developer goes to court challenging his termination and if the court grants stay on such termination, what's the way out? - Mangala Gadil, Andheri (West)
Answer: From the facts narrated by you, I feel these societies have tolerated this developer for too long a time. With re-development agreements signed in 2015 and with buildings demolished in 2018-19, if the developer does not have a valid Commencement Certificate (CC) in hand as of date, then he doesn’t deserve to be on site. It is an absolute fit case for these societies to terminate and revoke the re-development agreements executed with such irresponsible developer. You don’t need to take permission of MHADA for such termination. However, these societies are duty bound to duly inform the MHADA authority about such termination, as and when done.
You have informed that your uncle and many other senior citizens in the age group of 70 to 90 are in these societies whose flats are demolished way back in 2018 -19 and are waiting for their new flats for last at least 5 - 6 years and that too with irregular transit rent payment by the developer. With no CC in hand as of date the prospects of these members getting their new flats in next 3 years are bleak. These societies have to act fast and terminate this incompetent developer forthwith but of course with due procedure of law.
The Societies can also claim compensation besides outstanding Rent with interest from the developer through appropriate courts.
The Government of Maharashtra was obliged to issue a Circular dtd. 4th March 2024 after directions given by the Bombay High Court in a Writ Petition filed by Smt Jayashree Dholi ( a senior citizen) in a similarly delayed MHADA re-development project.
According to this Government Circular, MHADA authority shall take appropriate precautions to complete the redevelopment projects within prescribed period itself so that the senior citizens are not deprived of their homes. If it is noticed that the Developer is making default in implementation of the project MHADA shall issue three “Show Cause Notices” to the Developer, one each per month. Even thereafter if the Developer does not make any progress, pursuant to the request by senior citizens the appointment of the developer shall be cancelled by MHADA. The Circular has made it obligatory for MHADA to set up Grievance Redressal & Monitoring System to redress the grievances of senior citizens in respect of re-development of MHADA buildings.
You will thus notice that the Maharashtra Government, at the behest of Bombay High Court, has now adequately empowered senior citizens who are suffering long delays at the hands of developers in such re-development projects. These senior citizens have to come forward and pursue their grievances with MHADA.
In such cases, MHADA has been specifically directed to issue 3 Show Cause Notices to such erring developers in re-development projects and even thereafter if there is no progress, the MHADA Authority is empowered to cancel such developer’s appointment. In view of these latest developments at High Court and Government level, senior citizens suffering long delays in their re-development projects need not fear about possible stay on such cancellation / termination of defaulting developers and come out boldly to replace them with competent and reliable developers.
In such endeavour, I am sure, High Court and Government will adopt compassionate and proactive approach since it ultimately involves violation of fundamental right of shelter for senior citizens.
