Redevelopment - bank guarantee from the builder
In Need of Help
(Querist) 09 December 2024
This query is : Resolved
Greetings!
Our society has agreed to provide piece of land of the present society building.
MC agreed to it because as per them there is in recent times no norms of asking/providing bank guarantee.
How far is this correct?
Can this be protested. Can few members objection stop the process of Redevelopment
What happens even if a single member objects to this and demands Bank Guarantee.
What are steps to be taken in such case.
Thank you
Sincere Regards
Mike
T. Kalaiselvan, Advocate
(Expert) 09 December 2024
Yes, a bank guarantee is usually required for redevelopment projects.A bank guarantee is a security that a developer provides to cover a portion of the project cost. If the developer doesn't complete the project, the society can use the bank guarantee to recover their losses.
An alternative to a bank guarantee is an Insurance Surety Bond (ISB).
The success of a redevelopment project depends on transparency and cooperation from all members. The managing committee should also protect the society's property title and negotiate the development agreement with the developer.
In Need of Help
(Querist) 09 December 2024
Thank you Respected Advocate Shri T. Kalaisevlan.
I remain oblige and indebted.
Sincere Regards
Mike
P. Venu
(Expert) 11 December 2024
What do you mean by "Our society has agreed to provide piece of land of the present society building."?
