Allotment of flats in redeveloped building

ALLOTMENT OF FLATS IN REDEVELOPED BUILDING  – by CA PRAKASH VALECHA. M 9821045102

The allotment of Flats is a tricky issue. On the face of it appears a small issue but here many disputes and problems arise. Old Buildings that need to be demolished in redevelopment were constructed sometimes 30 years ago and having FSI of 1.
There are narrow passages with 4 to 6 flats at times on the same floor. As the newly constructed building uses TDR and hence the FSI is 2 and now from 6th January add Fungible FSI of 35 % on the Total Plot area we have total FSI of 2.70. Therefore now the new Building is designed taller and having a sophisticated design which is relevant today. At times there are two storey parking floors.
Many members staying on lower floor want a upper floor while some members are old and do not wish to stay at higher floors as they fear that in case of lift problem or in the eventuality of a light cut they don’t want a particular floor. Some are having a Road facing flat but don’t want the same as it creates noise while some members want a road facing flat. Some Flats are in front side while others art back side. In the new building they wish the same status.
The problem arises is that new building has limited choice which all the old building members want. Therefore for a Fair process of allotment we need to have a policy that is fair and equitable.
Any action is malafide and void ab- initio, if it’s prejudicial, carried out with a narrow objective of favouring a select few while ignoring the majority. Therefore it is essential that certain guidelines and policy decisions are followed that are fair just and equitable..
The Government Guidelines dated 3rd January 2009 throw light on the way to move forward on the allotment of Flats. In point 11 of the guidelines it is stated as follows:
Flats in the redeveloped building should as far as possible be allotted as per present conditions floor-wise and if it becomes necessary to allot flats by drawing lots, on
completion of construction, Developer should make arrangement drawing lots, and at that time flats should be allotted in the presence of Registrar’s representative and this process be recorded by video shooting.

What is suggested in simple terms is:

1. Allot Flats as per present conditions floor-wise.

2. IF that is not possible allot flats by drawing lots.

3. It is the Developers responsibility to make the arrangements.

4. All the interested Members must be present when the Draw of Lots is conducted

5. Registrars representative to be present.

6. Process,be recorded by video shooting

Based on this guideline the Managing Committee and the Builder should follow the above Process as sincerely and diligently so as to make a Fair and just allocation of the New Flats.

Courtesy : MSWA’s Housing Societies Review 16 November 2012 

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6 Comments on “Allotment of flats in redeveloped building”

  1. thatrahulpai says:

    Our society is going for redevelopment . He have flats of 3 types – 400sqft, 470sqft, 550sqft in our building. Developer is giving 20% extra to existing area . Some members are arguing that 20% extra should be as per each flat’s size but the 35% fungible area should be equally distributed between big and small flats. This has caused 2 groups ..one with small ans the other with big(550 sqft) . Should fungible area be given to each flat as per its size or it should be equally distributed ???

    • yazdi says:

      Logically, any new area should be in direct proportion to the existing area of each flat. You can do anything else only by mutual consent of all.

      • jigar shah says:

        hello sir,
        my building is going under redevelopment, what are the thing to be aware of ?
        secondly how much extra sq. feet can we demand.

  2. Husain T says:

    we are the tenants of old building with 2 Rent receipt of 1400 sq ft carpet area , builder agreed to give us 2 flats of 700 sqft . in new building & he made 2 separate agreements & now building is ready but he has made only 1 flat 1400 sqft . which is wrong as per agreement , so what we can do further ?? or can we sell the flats in future…

  3. aamir says:

    sir kya hua aapka.. i am in same position as yours

  4. Patil says:

    Our building is going in redevelopment and we have getting 2bhk flat but we required 2 flat of 1bhk with extra area, as it is not possible in given area. My question is builder asking us to pay stamp duty for 2flat how? We r taking small 1bhk flat and using area in other 2flat with increasing area. Please guide.


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