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Ravindra (Proprietor)     05 December 2011

Termination of development rights agreement

How to terminate a Registered Agreement / General Power of Attorney

We have entered into a development agreement with the builder. The society has entered into a agreement with the builder to develop a building for 18 old tenants who stay in chawls in our society premises itself.

The development Agreement is registered, and a registered GPA is also made. From 2002 till date the builder has not started the work. There were many issues and problems in the agreement. The society members had agreed to allow a building for 18 tenants so that they will get shifted from chawls to building.

Somewhere in 2009 members came to know that the whole society FSI, TDR, was given to the builder, and the builder instead of only 18 tenants flats of 300 sqft was construcitng two towers of 7 plus floors, using all available FSI, TDR. The then committee had taken money, and were not even ready to show the agreement to the members, but when all members pressureised they had to hand over the agreement copie to the members. When a few members read the agreement they were shocked, they approached a few advoactes, and all said that it was a fraud.

There the members forced the then committee to resign, and new committee was elected. The old committee had not signed M20 bonds.

The new committee immdiately sent termination NOTICE after passing a resolution in a AGM.

Now the society which is very old, and buildings in very bd conditions, more than 50 years old, need compelte redevelopment, therefore the new committee started the process of redevelopment as per GR 2009.

Now after two years of termination NOTICE the old builder is again claiming to enter the said premises and start construction to which all memebers are opposing, but the builder has treatened to enter.

Now in this situation, to resolve the issue completely, and to get out of this FRAUD agreement completely so that a new process as per GR 2009, can be started, what can be done.

I need to know how to terminate this Development Agreement and how to revoke the GPA.

Please help us fast...as time running out....

 

The agreement do not have any clauses on society side, even termination clause that was there in MOU is not there in Agreement. There is no chance. The aribitration clause is also from the builders side.

So to end this issue permanently what should out society do....



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 6 Replies

Sundar XXXXXXX (Software Engineer)     07 December 2011

You need to file a civil suit challenging the agreement since you have already terminated it and prayfor an immediate injunction/stay on all ctivities by the developer

Since the agreement/ POA  is registererd , you need to also get it cancelled/unregistered from the office of the registrar. There must be standard procedures to do this

1 Like

Ravindra (Proprietor)     07 December 2011

Sir, thanks for your reply.

I do understand that we need to file a suit challenging the agreement. But also as you are aware that our court system is always delayed. If this case goes on for 5 to 10 years, our buildings re-development will be delayed, which would be a biggest problem, a smallest earthquake in this area might bring down if not complete building a part of building.

So to avoid the delay, is there any other remedy other than compromising with this builder, as this builder is not a professional builder and our old committee has donea big fraud and cheated the society.

Also can you help me with how do we apply for deregisteration of the registered agreement and GPA from the registrar, what documents will we require. Please guide us, its very urgent.

 

Also a new development is that we have heard that the orignal builder has given his development rights to a local builder who is now started treating the committee that he has taken over this project and he will start the work withing a week or so...

 

Please guide us the fastest way to block such nuisance from happening, cancelling the registered agreements and GPA, and to terminate the Development Rights immidiately.

Sundar XXXXXXX (Software Engineer)     09 December 2011

You case is a tough one as you did not do anything between 2002 and 2009 when nothing was done. Your agreement should have had a clause to complete the construction by a certain time.And you never acted to get the development agreement cancelled for such a long time.Have you conveyed the land in favour of the developer? If no, you still have hope

I dont know the process of deregistration, but you could get this info from the office of the registrar. The minnimum you should do is to send a legal notice to both develoeprs warning of dire consequences if they do not terminate all activities. Also file an FIR with the local police for potential trespassing against the developers.This should buy you some time. In the meanwhile get the POA and agreement deregistered

Ravindra (Proprietor)     10 December 2011

Dear sir, This agreement was signed by our Chairman who herself is a HIGH COURT lawyer.... She is also our member. And she also had two rooms in these chawls which were to get developed.  Its she who misguided the whole society. Everybody trusted her as she was advocate and a member of our society everybody had a blind faith on her. She had misguided all members in many ways. This redvelopment agreemetn was only for 18 tenants with each tenant having only 100 sqft room in the old chawls present in our society compund. Now under RENT CONTROL ACT, tenants are not having any rights to get ownership flats in redevelopment. They need to pay for the same. This lady told all members that as per law tenants should get minimum 300 sqft area. Since all members trusted her this agreement was excuted so once for all all the chawls get demolished and society looks better. But this female did not stop there, she took a bigger advantage of this trust in her, she saw to it that the agreement had no termination, penalty clause...She being an advocate herself should have added all clauses to safe guard the society. She has removed them from the agreement. She was the biggest beneficiary. ANd all commiitee members had got paid from the buidlker. ALl of them got envelopes of rupees. This lady, has even gone ahead and sold one room of one tenant who needed money to the builder. She also has seen to it, that if the agreement is one sided, the whole societies re-development can be given to this builder. ANd hence she entered into this agreement.

 

Now for till 2009 no members knew exactly what was going on, as no one got to read the agreement, as she did not allow anyone to see the same, as she was the chairman of the society from 2001 to 2009. When all females, members, kids gheroud the society office, and everyone said that they will not allow her to go home, if she did not give the papers, that time, she gave the papers to the members to see.

 

After going through the papers we cme to know that the agreement was a fraud.., and against the society. The society is having 72 members, and 18+7 shopkeepers. Now all these members were kept in dark till 2009. After we got all papers, we immidiately called upon a Special General Body Meeting and Passed a resolution unanimously to terminate the builder.... And our advocate as per that has already server the builder NOTICES, the last one was in 26-03-2010.

 

This year now when we published a ad in newspaper for redevelopment of our entire society, the builder has rasied objection. To which we have replied that we have terminated him, and we are proceeding further with complete redvelopemetn of our society.

 

Now please guide us in this situation, what exactly should the society do, prevent this builder from doing any wrong to the society, or creating any third party rights.

 

Please advice at earliest as the problem has magnified in this week, and we need to stop this builder from doing any wrong.

 

Please advice us of what legal path we should take, and what should we do to stop him everywhere, from doing any thing in any office, from plans, to orders, etc....

 

If you want i can send you the agreement copy also...

Ravindra (Proprietor)     10 December 2011

Should we file Fraud cases against all the committee members of the society who have put our society in this mess... will that have any advantage to terminate this agreemtn in any ways. We personally do not feel to do this as the members are our own society members for such a long time... But if thats needed to save the society from such kind of a LOSS than we are ready to do that also....

devangkamdar   20 January 2015

sir there was a latest jugment of Hon.SC in regards to DA cancellation , wat was it exactly , can u throw some light on that

 

Devang 


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