Mumbai Housing Queries: 'Developer Requires Irrevocable PoA To Sign The DA,' Says Expert

Mumbai Housing Queries: 'Developer Requires Irrevocable PoA To Sign The DA,' Says Expert

The questions are answered by Sharmila Ranade, a legal expert associated with Mumbai Grahak Panchayat.

FPJ News ServiceUpdated: Monday, February 05, 2024, 05:09 PM IST
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My father lives in the US and his society is going in for redevelopment. He has authorised me to sign the development agreement and the permanent alternate accommodation agreement byway of a power of attorney. Am I required to register the POA or will a notarised one be sufficient?

Sarika Patel, Malad

The developer will require an irrevocable power of attorney from your father to sign the DA and the Permanent Alternate Accommodation Agreements to avoid any disputes at a later stage. Section 17(h) of the Registration Act provides that irrevocable power of attorney relating to transfer of immovable property in anyway executed on or before the Registration (Maharashtra Amendment) Act, 2010 is required to be registered. Members are the confirming parties to the development agreement and the development rights are transferred to the developer. The developer is entitled to sell the extra flats that will be constructed. As such the POA needs to be registered.In accordance with Section18 of the Maharashtra Stamp Act, in case the POA has been executed out of Maharashtra,you will be required to pay the stamp duty in Maharashtra within three months of the POA being first received in the state before registering the same.Two societies are in the process of redevelopment as a single plot. Both have passed individual resolutions to undergo redevelopment jointly. As such the process of tender, appointment of PMC, etc, has been done at a joint special general body meeting of both the societies. The joint meeting to finalise the developer was held when three developers made their presentation. One developer got 51 per cent votes from both the societies collectively.

Whether 51 per cent votes of each society is required to be counted and what if one society fails to get 51 per cent votes for the preferred developer? Further if transfer of flat is pending due to non-submission of relevant documents after the death of a deceased member, can such a person’s votes be counted to get 51 per cent votes?

Vineet Sharma, Chembur

At the outset there is nothing like the preferred developer mentioned in the government GR dated July 4, 2019. Since both societies are different entities,they have to individually comply with the government GR. The con-sent of 51 per cent members from each society will be required to select the developer. As per Clause17 of the said GR, the quorum of the SGM shall be two-third of the total members of the society.Technically two-third members of each society shall remain present to form a quo-rum. If not the meeting shall be postponed for next seven days and if again the quorum is not present the same agenda cannot be brought be-fore the SGM for the next three months for approval. If the quorum is present, it is necessary to take the consent of not less than 51 per cent of the total members of the society present in the meeting for the appointment of the developer.For this purpose no written,oral or any other type of communication, remark or opinion shall be taken into consideration from members not present in such meetings.Thus both societies have to individually comply with the requirement of quorum and obtain 51 per cent votes of the members present and voting in the meeting before the registrar or his representative. Any consent obtained earlier in writing will not be considered to calculate the 51 per cent votes. If the preferred developer does not get 51 per cent votes, he cannot undertake the redevelopment of the society. As regards your second question, in case the deceased member has appointed a nominee, the society is required to give such nominee/s provisional membership until the final heir is identified and the required documents are submitted to the society for admitting such heir/s as a member of the society. As per Section 154B-11, provisional members have aright to attend and cast a vote in the general meeting. Hence their votes will be counted to arrive at the 51 per cent votes in favour of the preferred developer.

I vacated my flat in December, 2023 as the building has gone for redevelopment.However, I have received the electricity bill for Rs 100 for January 2024. Please advice.

Manasi Jadhav, Bandra

It is the responsibility of the developer to inform the utilities to remove individual meters. Though there may not be any consumption of electricity, you will be getting the bill for connection charges till the meter is not surrendered. You may also write to the electricity company requesting surrender and removal of the meter on account of redevelopment. You can also request the electricity company to re-fund the security deposit.

The questions are answered by Sharmila Ranade, a legal expert associated with Mumbai Grahak Panchayat. The questions, in brief, may be sent to fpjchs@gmail.com

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