Short Answer

Yes, a society can require the developer to provide some cash to members or pay for their rent during the redevelopment or structural repairs process.

Detailed Explanation

Section 63 of the Gujarat Cooperative Societies Act, 1961 empowers the society to enter into agreements with developers for redevelopment projects. This section allows the society to negotiate terms and conditions with the developer, including financial aspects such as providing cash to members or covering their rent during the redevelopment period. The society can include these requirements in the redevelopment agreement to safeguard the interests of its members.

Rule 85 of the Gujarat Cooperative Societies Rules, 1965 further elaborates on the powers of the society in dealing with redevelopment projects. This rule provides guidelines on the terms that can be included in the redevelopment agreement, ensuring that the interests of the society and its members are protected. Therefore, the society can legally require the developer to provide financial assistance to members or cover their rent as part of the redevelopment process.

In practice, when a society embarks on a redevelopment project, it can negotiate with the developer to include clauses in the agreement that address the financial concerns of its members. For example, the society can stipulate that the developer must compensate members for any temporary displacement or inconvenience caused by the redevelopment work. This ensures that the members are not unduly burdened financially during the construction phase.

Real-world Scenarios

• Scenario 1: A cooperative housing society in Gujarat decides to undergo redevelopment to upgrade its aging infrastructure. The society enters into an agreement with a developer, specifying that the developer must provide a monthly allowance to members who are temporarily displaced due to the construction work.

• Scenario 2: During structural repairs of a cooperative society building, the society mandates the developer to cover the rent of members who need to relocate temporarily for safety reasons. This provision helps alleviate the financial burden on the affected members.

References

• Section 63 of the Gujarat Cooperative Societies Act, 1961: Official PDF

• Rule 85 of the Gujarat Cooperative Societies Rules, 1965: Official PDF