Short Answer

To balance the cost between repairing and keeping the old structure or opting for complete redevelopment, it is essential to consider factors like the extent of damage, future maintenance costs, regulatory requirements, and the overall financial feasibility.

Detailed Explanation

Section 63 of the Gujarat Cooperative Societies Act, 1961 empowers the society to undertake repairs or redevelopment of the building. This section allows the society to decide whether to repair the existing structure or opt for complete redevelopment based on a general meeting resolution. The decision should be made considering the structural integrity, safety concerns, and financial implications. If the repairs are minor and the building can be restored to a safe and habitable condition without significant costs, repairing may be a viable option. On the other hand, if the structure is severely damaged, outdated, or not compliant with current regulations, complete redevelopment may be more practical in the long run.

Rule 80 of the Gujarat Cooperative Societies Rules, 1965 lays down the procedure for obtaining approval for redevelopment. This rule mandates that the society must obtain prior approval from the Registrar of Cooperative Societies before initiating any redevelopment project. The society needs to submit detailed plans, cost estimates, and other relevant documents for scrutiny. This ensures that the redevelopment project complies with all legal requirements and safeguards the interests of the society members. The rule also specifies the conditions under which redevelopment can be undertaken, such as obtaining consent from a specified percentage of members and following due process.

Practical Examples

• Scenario 1 - Minor Repairs: A cooperative housing society in Gujarat notices some minor structural issues in the building due to aging. After conducting a structural assessment, it is determined that the repairs are minimal and can be completed within a reasonable budget. In this case, the society decides to repair the existing structure to maintain the original building while keeping costs low.

• Scenario 2 - Severe Damage: Another society discovers significant structural damage in their building, making it unsafe for occupation. After consulting with experts, it is concluded that the cost of repairing the old structure would be exorbitant and not sustainable in the long term. The society members then opt for complete redevelopment to ensure a safe and modern living environment.

Reference

• Gujarat Cooperative Societies Act, 1961: Section 63

• Gujarat Cooperative Societies Rules, 1965: Rule 80