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Amendment of agreement with builder

(Querist) 11 June 2014 This query is : Resolved 
Dear Sir

We have gone for redevlopment of Mhada Bulding in Mumbai with builder but after two year of agreement builder want to amend the agreement for reducing the area & stopped paying the Rent to us.Committee members are in favour of Builder.

Can committee member amend the agreement with 70 % member's concent/majority ? (It is a reg. Housing society)

Regards
Harendra
M V Gupta (Expert) 12 June 2014
The committee may agree to the change if the majority members of ur Society pass a resolution approving the same. But the members who are not agreeable for it may challenge the resolution passed by the majority in cooperative court on ground such as that the reduction in the area is adversely affecting the interests of the members or is in violation of the Govt directions for minimum area to be given in the new structure and/or that majority were mislead by the Builder and the Committee members and / or that the Committee is hand in glove with the builder etc. The grounds may be decided in consultation with ur advocate. Ensure that the opposition of the minority members and their contentions are recorded in the minutes of the meeting of the G body.
Raj Kumar Makkad (Expert) 12 June 2014
The advice of expert MV Gupta do touch each and every point concerned with your case so follow it.
HARENDRA S SINGH (Querist) 13 June 2014
Dear Sir

Builder is ready to give us minimum area 405 carpet with fungible area, but he was agreed to give us 484 carpet(as per new Mhada policy Maximum area is 753 sq ft carpet).Now after demolition of building he is saying that accept 405 area otherwise refund corpus fund Rs.711000/- each member plus other exp.unless or untill we are not accepting his conditio he will not start work & will not pay the rent.

shall we copromise or go in consumer court for loss of 80 sq ft carpet area?
M V Gupta (Expert) 13 June 2014
Your Society must have executed re-development agreement in which the area to be provided in the new building must have been mentioned, along with other terms such as the corpus amount,rent payable to members for alternative accommodation during the construction of the new bldg etc. Hope the agreement has been duly registered along with the individual consent agreements. If this is correct, then the builder is bound to honor the agreement. Your Society should not agree for the reduction in the area of new flats. If necessary Society should take legal proceedings to get the specific performance of the Dev agreement.
ajay sethi (Expert) 14 June 2014
builder is bound to honour the agreement . refuse to agree to reduction in area . contact a local lawyer . take legal proceedings against the builder to honour the agreement
Raj Kumar Makkad (Expert) 14 June 2014
None of the parties to the agreement can back out of its terms arbitrarily hence don't bow to the illegal demand of the builder.
T. Kalaiselvan, Advocate (Expert) 14 June 2014
Well advised by expert Mr. Ajay Sethi, nothing more to add.
HARENDRA S SINGH (Querist) 16 June 2014
Thanks to All Expert for giving valuable advice
Raj Kumar Makkad (Expert) 16 June 2014
Most welcome from your side Harendra
Hemant Agarwal (Expert) 19 June 2014
1. Agreement = Rescindable with mutual consent from both parties to the agreement.
2. Party to Agreement = Builder-Developer plus Society
3. Change in Society Resolution plus Builders consent = Change in Agreement. However change in redevelopment agreement is not permissible after IOD is issued.
4. Above subject to compliances and direction and consent of MHADA
5. Agreement with Builder CAN be cancelled totally for non-performance WITHIN time frame, who will then move court, wherein the builder has to comply with the original agreement or surrender. Subsequently appoint new builder, at latest new terms. Old builder can be junked away, irrespective of anything.
6. One individual member may challenge the new Society resolution (if any) on grounds of misrepresentation and fraud and ....

Keep Smiling .... Hemant Agarwal
http://hemantagarwal21.blogspot.in/?view=sidebar
HARENDRA S SINGH (Querist) 20 June 2014
Dear Sir

As per agreement Builder was agreed to Bring IOD within 4-6 months but he is not bring the IOD.He told to us that before IOD how many resident will vacate,he will start paying rent to them.As per promise he was started paying rent to member who have vacate the House.In that way one by one (Including Committee Member)in greed of Rent + corups fund vacated the building,I was alone member in building for 4 month but residing alone in building become difficult for me finally I too vacated the premise.After vacating whole building,builder paid corups fund +Rent chq for two Years.In a meeting Builder promised to us that if Building members are giving concent for demolition of building, he will start work of Development because IOD will take time for 4-6 months.As committe members & other member was ready for concent.after concent of member builder demolished the building.Two year after stopped paying rent saying as Mhada's policy change we have to give some stock to Mhada.Therefore amend the agreement where he want to reduce area & Rent.as Building is demolished we are under the builder as every member have no money to repay the same.(In society agreement committee members have agreed to repay the money whenever they will terminate the Builder).In this way we are in trap of Builder & I have full doubt that committee members are involved in this case because they want settlement at minimum area where each member have loss about 25 laks each.

is there any remedy to come out from trap of Builder & Committee member ?


Hemant Agarwal (Expert) 20 June 2014
1. A Typical and Classical case of "Greed", by MHADA residents, by throwing everything to the winds.
2. The entire Redevelopment Process, is fraught with fraud and without complaince of various laws, at the cost of Society members. Ignorance has ruled the roost.
3. File Criminal Case on builder, with help of a experienced local lawyer
4. Issue notice to Builder thru a experienced lawyer, File matter before HC, throw the builder out and restart proper procedure of redevelopment.

Keep Smiling .... Hemant Agarwal
http://hemantagarwal21.blogspot.in/?view=sidebar
Raj Kumar Makkad (Expert) 21 June 2014
On the basis of the fresh facts of your query, it can safely be observed that the builder has played fraud with you and you have remedy to file a criminal case against him reserving your civil rights to get entire benefits as undertaken by the builder while making agreement with you.


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