Covenants, indemnity bonds, for smooth redevelopmentPosted: February 22, 2013
There are many covenants and indemnity bonds the developer has to agree to, with the members in order to have a smooth redevelopment process. The following are some of them :
- The developer should agree to carry out the redevelopment work in accordance with the DC regulations, BMC, MHADA Act and all the other concerned authorities. The society will not be responsible for any breach, if any, committed by the developer.
- The developer must give a Bank Guarantee before commencing redevelopment
- There must be a tri-partite agreement between the developer, the Society and the Member, which should protect the Society and Member interests totally.
- The developer should also indemnify the society/the members against objection, if any, raised by any of the concerned authorities.
- The developer should carry out demolition of the existing structure and construction work at his own cost. If there is no demolition, and the construction is to be carried out in a space adjoining or between the existing buildings, the developer must indemnify the Society and its members in case of any damage to the existing structures.
- Even if the demolition is to be carried out, the developer must keep the Society indemnified in case of any damage to the adjoining or nearby buildings, even if they do not belong to the Society.
- The developer should bear all the expenses for submission of the plans, amended building plans, getting the approval, architects and consultants fees and other costs, charges and expenses related thereto
- The developer should obtain insurance of the labour, workers and all others and indemnify and keep indemnifying the society from or against loss, damages due to inaction or otherwise, on part of the developer, from starting the demolition of the existing building and till the members re-occupy their new flats in the newly constructed building.
- The complete installation which the developer is to undertake for his on-site power supply, shall conform to the Indian Electricity Rules 1966 and Indian Electricity Act 1910, with latest amendments and specifications. The developer shall provide, at his own cost, portable generators to maintain regular power supply for his operations, in case of disruption of power supply. The developer should indemnify the society from any liability, either legal or financial, for damages or delay caused to the developer on account of failure of power supply.
- The developer should provide indemnity bonds for the project. The developer should, throughout the period of development, keep indemnifying the society against all actions, suits, costs, charges, expenses, damages, etc., resulting on account of any act of omission or any breach, delay or default on his part in developing the said property or any rules and regulations, terms and conditions or otherwise.
- Lastly, the developer should not make any claims on the basis of the present Development Agreement after the expiry of the 24 months, till the separate agreement is signed with the society.