Redevelopment Disadvantages 

There are also a few disadvantages that need to be mentioned for a ready reference. Redevelopment projects should always be carried out with a lot of caution, as one single mistake could land the members in serious trouble. Also certain issues need to be tackled so as to avoid discomfort for the members of the Society.

 

To the Co-operative Societies/Members:

 

  • The Development Agreement that forms the basis of a “Redevelopment Project” is required to be drafted by a professional keeping in mind the safety and security of all the members. Any lacuna in the preparation of this deed may result in great loss for the members who are eligible to many perks in consideration of giving permission for this project;

 

  • For a considerable period of time members have to hunt for accommodation and stay in another place which disrupts their age old routine;

 

  • A residential complex when normally mixed up with or converted to commercial units are seldom preferred for housing purposes and family dwelling;

 

  • Additional new members would take a longer time to adjust to the existing original members, resulting in disputes on various issues;

 

  • New constructions equipped with all kinds of latest amenities in turn increase the cost of maintenance to be paid to the Society. (One can go for reverse mortgage to meet increase in the cost of maintenance and other expenses);

 

  • Increase in the amount of property tax;

 

  • The tax burden is high and in case the Occupation Certificate (OC) is not procured, then the BMC Charges and Water Charges are very high;

 

  • Additional members will require extra consumption of water creating scarcity or shortage of available water supply;

 

  • Additional vehicles need extra space;

 

  • Additional area purchased is at current market value, which attracts Stamp Duty and Registration Charges;

 

  • There is a dearth of honest and sincere members to look after the whole project of redevelopment. Unfortunately, members who advocate redevelopment become the usual suspects. Other members tend to doubt their integrity and think that they are motivated by selfish interests. (It is suggested that members who monitor the redevelopment process be paid reasonable remuneration for their services);

 

  • Further, there is always a fear of half-way stalled projects resulting in court battles.

 

To the Developers:

 

  • All the members of the Society have to be satisfied with all the plans of proposed by the Builder/Developer even though their most of the dealings are with the Managing Committee of the Society.

 

  • In case of any dissatisfaction arising between the members of the Society during the execution of the redevelopment project, it results into division of members and various oppositions start arising which makes the task even more difficult.

 

  • In the event, the redevelopment project remains incomplete, it gives rise to litigations.

 

 

Further if you want detail procedure on Redevelopment, books are available at our office & for the enquiry contact : 022 42551414

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