Redevelopment and Structural Repairs

How are redevelopment responsibilities shared if not all owners agree – can dissenters be bought out?

In cases where not all owners agree on redevelopment, the responsibilities can be shared based on the provisions of the Gujarat Cooperative Societies Act, 1961. Dissenting owners can potentially be bought out, subject to certain conditions.

In cases where not all owners agree on redevelopment, the responsibilities can be shared based on the provisions of the Gujarat Cooperative Societies Act, 1961. Dissenting owners can potentially be bought out, subject to certain conditions.

Written By: GatePal Analyst

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Short Answer

In cases where not all owners agree on redevelopment, the responsibilities can be shared based on the provisions of the Gujarat Cooperative Societies Act, 1961. Dissenting owners can potentially be bought out, subject to certain conditions.

Detailed Explanation

Section 63 of the Gujarat Cooperative Societies Act, 1961 deals with the powers of the society to undertake redevelopment or repairs. This section empowers the society to carry out structural repairs or redevelopment with the consent of the general body meeting. If some owners dissent, the society can still proceed with the redevelopment by following the procedures laid down in the Act.

Furthermore, Rule 84 of the Gujarat Cooperative Societies Rules, 1965 provides guidelines on the procedure for obtaining consent for redevelopment. According to this rule, the society must give notice to all members regarding the proposed redevelopment plan. If some members do not agree, the society can negotiate with them to buy out their share in the property.

In practice, if dissenting owners refuse to give consent for redevelopment, the society can initiate discussions with them to reach a mutual agreement. If an agreement cannot be reached, the society may offer to buy out the dissenting owners' share in the property at a fair price. This process ensures that the redevelopment can proceed smoothly without hindrance from dissenting owners.

Real-world Scenarios

  • Scenario 1: In a cooperative housing society, a few owners oppose the redevelopment plan due to personal reasons. The society can hold meetings to discuss the benefits of redevelopment and try to convince the dissenting owners. If they still do not agree, the society can initiate buyout negotiations as per the Act and Rules.

  • Scenario 2: A society proposes a redevelopment plan to enhance the building's structural integrity. Some owners are hesitant to invest in the project. The society can engage in transparent discussions, provide cost-benefit analysis, and if necessary, offer to buy out the dissenting owners to move forward with the redevelopment.

Reference

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

  • Rule 84 of the Gujarat Cooperative Societies Rules, 1965: Official PDF

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