Change of builder due to dispute

HARENDRA S SINGH (Querist) 16 August 2014 This query is : Resolved
Dear Sir

We have given our Bldg to a Builder for Redevlopment (Mhada Bldg in Pantnagar, Ghatkopar, Mumbai.but after 2 year Builder stopped paying rent to us saying as he have loss in Project due to stock option of Mhada.Now socity is going to change the Builder.Society sent notice to Builder for termination & ask to give detail of Builder's exp. After getting exp. detail New Builder will pay exp. of Old Builder & get NOC for the same.

Sir, What precaution we should take while changing the Builder where one Builder is saying he has loss in Project & other is saying he have no loss ?

Regards
Harendra

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ajay sethi (Expert) 17 August 2014
it is necessary to go through the contract signed by society with builder . contract must be containing provision that in the vent builder fails to pay rent to members , complete work on time society can encash the bank guarantee given by builder .

M V Gupta (Expert) 18 August 2014
Although the redevelopment agreement provides for termination of the contract for delay in completion of the project or for breach of the contract, it is not in practice easy to do away with the defaulting builder.All the original approved plans, RCC drawings etc will be with the builder; correspondence with the BMC and the Architect and RCC specialist etc will have to agree to continue to work for the new builder. there may be other project commitments which the new builder may have to comply with. Hence the approach adopted by you to have smooth take over by the new contractor is good.Ensure that the outgoing builder hands over to the Society all approved plans, amending plans if any,etc are handed over to the Society with a no claims certificate against the Society. It may be necessary to replace the bank guarantees given by the builder etc. Hence take guidance from an advocate who is well versed in these matters and get suitable documents executed.

HARENDRA S SINGH (Querist) 19 August 2014
Dear Sir

Builder is not given bank gurantee,in agreement he is agreed to give bank gurantee only when he start work.He is not yet bring IOD too.It is nearabout 2 yrs he is not paying rent to us.Committee members are saying if builder have no profit how he will give area as per agreement.Some members are politically goons type,who are creating problem in going to court,saying court's deceion will take 10 to 20 yrs for decision then members will pay rent from where ? Therefore committee want to change the builder at low area from agreement.I have doubt that committee will get some benefit in changing Builder too.

Sir pls give me some suggestion to come out from this problem where committee become greedy & will go to any level.

Regards
Harendra

M V Gupta (Expert) 20 August 2014
If committee is greedy all members should join and demand for resignation of the committee or approach the Registrar for supersession of the committee and appointment of administrator. U alone cannot do any thing.
God bless u all.