Necessity of a Structural Audit Report
A structural audit of the concerned building is the first and foremost step when a cooperative housing society (CHS/Society) deliberates on the possibility of redevelopment. Such a structural audit report determines whether the building requires major repairs or has to opt for redevelopment. Without a structural audit report, a resolution cannot be passed in the general body meeting (GBM) of the Society for redevelopment would be impossible.
Furthermore, a structural audit of this nature must be conducted by an engineer licensed and approved by the local municipal corporation. The report thus prepared and the recommendations therein would then determine whether the Society can undergo major repairs or has to opt for redevelopment.
This week, I will address one such problem where the managing committee of a Society has refused to consider redevelopment and has, instead, insisted that repairs can resolve structural issues with their building. I will also provide clarity on the distribution and calculation of painting and repair charges, as well as provide a solution to address defaulting members in a housing society.
Managing Committee Refuses to Opt for Redevelopment
Question: I live in Bandra (west) in Mumbai, in a CHS, which is almost 70 years old. Our Society is huge, consisting of residential and commercial premises and has around 75 members. It needs to go for redevelopment as, in some flats, we have a problem with leakage, and, externally, the rods in structural columns are rusted. In many places, the plaster has fallen from the external walls of the building. Even if the building is plastered externally, it will be useless as the column rods have rusted badly. But the current managing committee members of the Society are least bothered and are doing things according to their own wishes. Instead of opting for redevelopment, they are insisting on repairing the building. They also hired some engineer who did not have an official licence for a structural audit. Please advise and guide me before any untoward incident occurs.
Answer: Kindly make a complaint against the managing committee (MC) for the dilapidated state of your Society's building to the assistant municipal commissioner (AMC) of your local municipality ward office, under the bye-law no. 174(D)(v). Against your complaint, AMC will write a letter to the MC to conduct a structural audit of your Society's building under bye-law no. 76, under the supervision of a municipality-recognised structural auditor.
If AMC does not take any action against the MC of your CHS, then you should make a Lokshahi Din Complaint to the zonal deputy municipal commissioner (ZDMC), against the AMC. The ZDMC will take a hearing in his office and pass an appropriate order to AMC. This way, you can eventually get a structural audit of your Society's building done by a municipality-recognised structural engineer which should solve your problem.
NOTE
We will not be answering queries posted in the comments. Only questions sent through the Moneylife Foundation's Legal Helpline will be answered. If you want to seek guidance or ask questions to Mr Shanbhag, kindly send it through Moneylife Foundation's Free Legal Helpline. Here is the link: https://www.moneylife.in/lrc.html#ask-question Calculation of Painting and Repair Charges
Question: My CHS is planning to repair the exterior structure to stem leakages and fortification as well as for painting. The quotation from the consultant is around Rs1.5 crore and the Society has planned to collect this fund from the resident members. Accordingly, 2BHK (bedroom, hall & kitchen) owners have been asked to contribute almost double the amount (based on internal area in square feet of flat owned) in contrast to 1 BHK owners. While there are 21 flats of 2 BHK, there are 77 flats of 1 BHK.
Since it is the external area that includes a lobby, lift, and playground and other commonly used amenities that are used equally by all residents, is it a valid method to make the 2BHK owners pay more amount than 1BHK owners? How should the ideal computation be calculated? Please advise.
Answer: Under bye-law no. 67(a)(iii), repair and painting charges are to be levied on the built-up area of each flat. When the total estimated cost of the entire building is obtained, then the total built-up area of every shop and flat of the Society is to be calculated.
Add areas for all the flats and shops in the Society's buildings. Divide the total estimated cost of the repairs and painting by the total built-up square feet (sqft) area of the building. The answer will be the repair and painting cost per sqft of the flat or shop. Let this cost be X. Multiply every flat or shop's built-up area with this X, which will be the repair cost for that flat or shop.
Suppose the Society has not calculated repair charges as shown above. In that case, the affected persons can make a complaint to the deputy registrar of cooperative societies, under the bye-law no. 174(A)(xii) or (xxii). If the deputy registrar fails to redress your complaint, then by hiring an experienced advocate, kindly take up the matter to the cooperative court against the Society, under bye-law no. 174(B)(iii).
Recovery of Maintenance Dues
Question: I understand from an article in the newspaper that it is mandatory for all those who are liable to pay off pending dues of the Society within a period of three months. In this regard, can you clarify whether the dues are to be recovered from the back date as well since our CHS has many outstanding dues from 2017 onwards, totalling over lakhs of rupees? Please advise how we should be proceed to recover outstanding dues.
Answer: Against all defaulters in your Society who have outstanding dues for more than three months, the managing committee has to initiate an action under the MCS Act Section 154b-29 (earlier it was 101) by making the complaint to the deputy registrar (DR) of cooperative societies. The DR will issue an order to recover the Society's dues with 21% simple interest from each of the defaulting members, failing which the concerned flat would be auctioned to recover that flat's dues.
Disclaimer: The guidance provided in these columns and on our Legal Helpline is on the sole basis of the facts provided by the reader/questioner and does not amount to formal legal advice in any form whatsoever.
(Shirish Shanbhag has an MSc in Organic Chemistry, a Diploma in Higher Education, and a Diploma in French and has completed his LL.B. in first class in 2021. Before his retirement, he was a junior college teacher at Patkar College from July 1980 to May 2012, teaching theoretical and practical chemistry. Post-retirement in 2012, he started providing guidance and counselling to people on several issues, specifically focusing on cooperative housing society-related matters. He has over 30 years of hands-on experience in all matters about housing societies and can provide out-of-box solutions for any practical issue.)
