Redevelopment of old residential complexes is expected to get a push following the Tamil Nadu government notifying rules under the Apartment Ownership Act, 2022.
As of now, many redevelopment projects in the State have not fructified for a variety of reasons, including the lack of proper legal framework and differences of opinion among the owners of the apartments. This holds good for both residential complexes, big or small, built by both the Housing Board and the private sector, a government official says. He explained the rationale behind the law and the rules. The rules provide greater clarity for builders and flats’ owners on how to proceed with redevelopment, S. Ramaprabhu, a member of the construction industry, says.
Early this week, the Housing and Urban Development Department issued an order on the formulation of rules. Redevelopment projects will attract, through joint development agreements, stamp duty and registration fee.
According to the order that runs to over 55 pages, the consent of “not less than” two-thirds of the apartment owners of a given complex is sufficient to initiate a redevelopment project. It has to be expressed in writing and intimated to Chennai Metropolitan Development Authority (CMDA) or Directorate of Town and Country Planning (DTCP) or Local Planning Areas [which are 26 in number, says the DTCP website].
A minimum of four owners of the apartments are required to form an association in tune with the model bye-laws, as specified. The rules stipulate that a person, owning more than one apartment “shall be deemed to be one apartment owner.” In the case of existing associations, the bye-laws, if required, will have to be amended in accordance with the 2022 law and the rules. Fees have been prescribed for different stages, including the registration of associations and bye-laws.
For obtaining consent, a special general meeting has to be convened by the board of managers of the association. This can be either suo motu or on the basis of a request of one-fourths of the owners. The participation of at least two-thirds of the apartments’ owners “shall constitute a quorum” for such a meeting. In the case of the existing associations, executive committees will be regarded as boards of managers. Each board will consist of a president, vice president, secretary, treasurer and one member representative per block or tower in a complex.
Within 10 days of informing the respective authority, the association, which has planned redevelopment projects, will have to send written intimation to all the owners. If any owner is aggrieved by “the manner in which consent for redevelopment has been obtained,” he or she can submit his or her objection to the authorities in 30 days of receiving the intimation. Subsequently, notices will be served to the parties concerned and, if necessary, the authority will hold an inquiry before disposing of the objection.
Redevelopment projects can also be initiated following the certification of the appropriate authority that a building “is in ruinous condition or it may endanger the lives of occupants or any other person.” In such a case, the association in question has to convene a special general meeting and pass a resolution for engaging a promoter or consultant for preparation of detailed project reports.
Within 90 days of getting the authority’s nod, the promoter and the association will have to register the redevelopment project with the jurisdictional office of sub-registrar. The rules have also dealt with several other stages such as handing over of vacant property and apartment allocation under the redevelopment project.
Published - September 28, 2024 09:50 pm IST
