Short Answer

Yes, the society can penalize the builder if the redevelopment takes longer than agreed.

Detailed Explanation

Section 63 of the Gujarat Cooperative Societies Act, 1961 empowers the society to take action against the builder for delays in redevelopment projects. This section allows the society to impose penalties on the builder for not completing the redevelopment within the agreed timeframe. The penalties can be in the form of fines or other measures as decided by the society.

In practice, if the redevelopment project exceeds the agreed timeline, the society can first issue a notice to the builder informing them of the delay and the consequences as per the agreement. If the builder fails to rectify the delay or provide a valid reason, the society can proceed to impose penalties as per the terms of the agreement and Section 63 of the Act.

For example, if a builder agrees to complete a redevelopment project within 2 years but fails to do so, the society can levy a penalty on the builder for each day of delay beyond the agreed timeline. This penalty amount can be specified in the redevelopment agreement or decided by the society based on the extent of the delay.

Another scenario could be if the builder faces unforeseen circumstances causing delays in the project, the society can consider granting extensions based on valid reasons provided by the builder. However, if the delays are unjustified or prolonged, the society has the right to penalize the builder for non-compliance with the agreed terms.

Reference

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