3 Kinds of ‘Tenants’ and their rights

3 Kinds of ‘Tenants’ and their rights

What are the rights of statutory tenant, lessee and licensee?

Letting out premises is a sensitive issue. Both landlords and tenants turn hawkish in any discussion on this. The battle of owners versus occupiers would turn less hostile if each understood their limits, claiming only that which is rightfully theirs. There can be roughly three kinds of occupation – statutory tenant, lessee and licensee. Described below are the rights of each of them.


DIVYA B MALCOLM 28/07/2014 03:20 PM  http://www.moneylife.in/article.print_edition.php?id=38233


Take Public Grievances Online

Conscious citizens have been empowered by online grievance platforms. Use them!

Alot of things are wrong with our roads. We grumble about it and then move on, because ‘things will never change’. That’s not correct anymore. And the reason for this is simple—two of the three priority areas for the present government are: public grievances and Centre-state relationships. Both of these, in turn, impact us as owners and operators of motor vehicles in India. I am narrating personal experiences over the past few weeks.

Click Here for the full story

Make my trip ??

Consumers, beware of MakeMyTrip.Com. Complaints against the company are on the rise. The company does not even bother to respond to grievances routed through the Minstry of Tourism, Government of India, as is evident from the scanned copy of the letter hereto. As a consumer activist, having received the National Youth Award for Consumer Protection, I feel it is my duty to alert consumers to the uncaring attitude of the company.

Now, govt. staff will have to declare assets annually

Its now mandatory for government servants to declare their assets annually. Section 4 of the RTI Act mandated transparency only in terms of their salary and compensation. Strangely, the new rules have not been pubicised

Section 4 of the Right to Information (RTI) Act mandates that salaries and compensationpackages of government servants including officers from Indian Administrative Service/ Indian Police Service (IAS/IPS) cadre, be put up on the website of the relevant public authority. The notification issued last week by the  Department of Personnel & Training (DOPT) should come as a shock for government employees who have been amassing wealth, beyond their means. They will need to declare their assets by September this year and then by March or July, every year.

Every government employee is now required to file his annual returns pertaining toassets and liabilities, along with that of his wife and children, on a newly drafted declaration form. The notification is a sequel to the Lokpal and Lokayukta Act, 2013. The rules are termed as Public Servants (Furnishing of Information and Annual Return ofAssets and Liabilities and the Limits for Exemption of Assets in Filing Returns) Rules, 2014.

As per the notification by the DoPT, this declaration has to be made by every government servant over and above other declarations as per his/ her services rules.



Click Here for more Details

Development/Redevelopment of Housing Schemes of MHADA

Development/Redevelopment of Housing Schemes of MHADA

mhada buildingBy Accommodation Times News Service

1) The FSI for a new scheme on vacant lands of low Cost Housing Scheme for Economically Weaker Section, Low Income Groups and Middle Income Groups of MHADA having at least 60 percent built-up area of the tenements under EWS, LIG and MIG categories, shall be 2.50

2) For redevelopment of any existing housing scheme of MHADA, undertaken by the MHADA departmentally or jointly with societies /occupiers of buildings or housing societies/ occupiers of building or by lessees of MHADA or by developer, the FSI shall be as under.-

a) Total permissible FSI shall be maximum 2.5 on gross plot area.

b) The incentive FSI admissible against the FSI required for rehab shall be as under:-

i) In congested area, for the area upto4000 sq. m., the incentive FSI admissible will be 50 percent.

ii) In congested area, for the area above 4000 sq.m. the incentive FSI admissible will be 60 percent.

iii) In outside congested area, for the area upto 4000 sq.m, the incentive FSI admissible will be 60 percent.

iv) In outside congested area, for the area above 4000 sq.m., the incentive FSI will be 75 percent.

c) Difference between 2.5 FSI and the FSI required for “rehab + incentive” shall be shared between MHADA and Occupiers Society/ developer in the ratio of 2:1

d) In the scheme, for the land allotted for societies of MIG and HIG and developed plot allotted individually to MIG and HIG group, the permissible FSI shall be as per prevailing Development Control Regulations

Click Here for more details

Self Development of Society Buildings

Self Re-Development of housing society buildings

self redevelopment of the societyBy Accommodation Times News Service


01.   Majority of the residential buildings, in Mumbai, are literally above 50 years old.  Some are literally dilapidated and some are in dire need for large scale repairs.  Wherein in both such eventualities, very large sums of money is needed to redevelop such buildings.  Further in such Society’s Balance Sheet, there are hardly any funds accumulated over these 50 odd years, for Major repairs, thus forcing the society residents to continue living in such dilapidated and structurally weak buildings.

a)       Due to monetary reasons, the residents have to redevelop their buildings either through a Builder /Developer .OR.  consider the self-redevelopment of their buildings themselves, with the help of experienced and relevant Professional Consultants of the field, which includes Civil Consultants, Financial Consultants and Institutions, Legal Consultants and so on ….

b)       With appropriate guidance, patience, trust and mutual understanding, the Society can consider for “Self Re-Development” of their buildings, which in turn translates into substantial savings and earnings for the Society Members, in terms of permanent “Corpus Fund” in the Balance Sheet, of such Societies, which again in turn translate in lowering down maintenance bills of the members.

c)        Self-Redevelopment of Society buildings can be conducted easily & successfully, with proper planning and strategy, after keeping confidence and by taking help of experienced and relevant Professional Consultants of the field.

d)       Redevelopment has become further necessary and inevitable, due to BMC directions on Structural  Safety and repairs of 30+ year old buildings and discretionary authority available with BMC, to vacate dilapidated buildings.



02.  Typically most societies prefer to Redevelop their buildings thru Builders, after weak negotiations and still very weak agreements with the Builders.

a)      These leads to mismanagement

b)      Allegations of Corrupt practices and underhand dealings

c)      Builders take liberty and change Building development Plans, for their vested interests

d)      Original members remain at the mercy of Builders for completing their Building.

e)      Builders tend to usurp and sell common spaces


03.  The Housing Society’s may consider various benefits that can be derived from “Self Redevelopment” procedures.

a)      Building Plans will not be changed, without ALL “individual” members consent

b)      Corpus Fund can be accumulated at more than 2 times vis-a-vis builders offers

c)      Building will be designed & developed by the members themselves and in their presence, without any hindrances

d)      Members may use their discretion to develop their residential buildings into residential cum commercial buildings, which has its own advantages, in terms of money and facilities.

e)      With the advent of latest Directions by the Coop. Dept., the members may use their discretion to install Mobile Towers, Advertisement Hoardings, Solar Systems, Wind-Mills, Club House, STP, Swimming Pools and other facilities and amenities, which translates into more in-house amenities.

f)       BMC “Occupancy Certificate” will not be a problem, since the members will develop the buildings, ONLY as per approved plans.

g)      Building will be developed on time schedule, unlike the builders who usually delays the project for his own vested interests.

h)     Free Sale Flats, can be purchased by the original members, on costing basis

i)        Free Sale Flats, can be sold and restricted to certain categories

j)        Issue of Free Parking spaces can be solved

k)      Common Spaces cannot be sold and under-hand dealings can be avoided.

l)        Merging (amalgamation) of Two flats is possible, at Building Planning stage.

m)   Buildings can be completed before schedule, thus saving Rent for members


04.  Like all other difficulties in life, Self-Redevelopment also has some lacunas:

a)      Needs Time, Inclination, Money & Energy (T.I.M.E.)

b)      Needs “24 x 7 x 365” Professional Back-up. However this is not a major issue due to the availability of Professional Consultants, atleast in Mumbai.

c)      Issue of Finance, for Construction Cost for Self-Redevelopment.

d)      Since Self-Redevelopment is not practiced widely, Society members are highly apprehensive in terms of loss of self-confidence, trust and mutual understanding.



05.   Typically in Redevelopment thru Builders, the Society members are paid some money in terms of “displacement fund alias Corpus Fund”

a)      Sometimes this Corpus Fund is given to the Society, which the Society may secure it in its Balance Sheet, for appropriate investment, for purposes of earning Interest.

b)      Sometimes this Corpus Fund is given to individual members.

c)      In terms of SELF-Redevelopment, the criteria of Corpus Fund can be generated from Sale of the Free-Saleable Flats,  which would be constructed over and above the number of flats for its original members /residents.

d)      With prior & appropriate mutual understanding and trust, the original members may mutually decide to appropriate such Corpus Fund, generated thru Self-Redevelopment process, for mutual benefit of the Society.



06.  Typically in Redevelopment process thru Builders, the Society members are paid “Rent” money for alternate accommodation till the Redeveloped flats are duly taken over by the original members.

a)            In terms of SELF-Redevelopment, the criteria of “Rent” money for alternate accommodation till the Redeveloped flats are duly taken over, is a major issue, which needs to be decided with appropriate mutual understanding and trust.

b)            However this Rent Charges, can be adjusted subsequently from the accumulated Corpus Funds, generated from Free-Sale Flats



07.   Members may mutually decide to avail the percentage of extra area and the area of Free-Sale Flats,  since this can be turned into Society’s advantage, in terms of Corpus Funds generated from Free-Sale Flats.



08.  Typically in Redevelopment thru Builders, the Society members are paid “Shifting /Transportation” money to the alternate accommodation till the Redeveloped flats are duly taken over by the original members.

a)      In terms of SELF-Redevelopment, the criteria of “Shifting /Transportation” money for alternate accommodation till the Redeveloped flats are duly taken over, is a major issue, which needs to be decided with appropriate mutual understanding and trust.

b)      However this Shifting /Transportation  Charges, can be adjusted subsequently from the accumulated Corpus Funds, from Free-Sale Flats



09.  Typically in Redevelopment process thru Builders, the builders pay the Stamp Duty and Registration Fees, for the new Flat Agreement of the original members, subject to various parameters.

a)             In terms of SELF-Redevelopment, the criteria of “Stamp Duty and Registration Fees” money for the new Flat Agreement of the original members, is a major issue, which needs to be decided with appropriate mutual understanding and trust.

b)            However this Stamp Duty and Registration Fees, can be adjusted subsequently from the accumulated Corpus Funds, from Free-Sale Flats.



10.  Typically in Redevelopment thru Builders, the builder takes adequate liberties to conduct several lapses (illegalities), consequent to which the BMC does not grant “Occupation Certificate (OC) “, which in turn means double the rate of water-charges for all residents of the building.

a)         These lapses (illegalities), can be easily avoided and stopped, when the building is developed on “Self Re-Development” basis.

b)         An “Occupation Certificate (OC) ” also means higher Sale-Value of the Flats and easy Bank-Loans for buildings granted with Occupancy Certificate.



11.  The typical cost of construction is approximately between 1200/- to 2200/- per CARPET square feet (depending on location and luxuries being provided).    This “includes” charges for Development permission from BMC, all Professional Consultants fees and other incidentals.

a)       The “Free-Saleable Area” is sold by the builder,  approx. between 10,000/- to 25,000 per CARPET square feet (depending on location and luxuries being provided).

b)       The tentative earning the Builder earns out of each Carpet square feet is approximately 7000/- to 20,000/- per CARPET square feet (depending on location and luxuries being provided).

c)        This also means that to construct ONE Flat of approximately 1000 square feet (carpet area), the all-inclusive construction cost is approximately Twenty (20 Lakh rupees) in Mumbai Suburban area, which includes all costing’s.  This is possible if the Conveyance of the plot of Land, is in the name of the Society.

d)       The above translates into Construction Cost of approx. Twenty (20 Crore rupees) in Mumbai Suburban area, for constructing 100 flats of approx. 1000 square feet each (carpet area).

e)        Presuming that out of 100 Flats, 50 flats are to be given to original members, there remains 50 Flats for “Free Sale” (Free-Saleable Area), which can easily be sold for Two Crore each, thus translating to 100 Crores in terms of Sale-Price.

f)         Presuming further that cost of construction of 20 Crores is reduced from the 100 Crores received from “Free Sale” by the Society, there still remains approx. 80 Crores of Gross Profit.

g)       The above in turn translates into huge Corpus Fund to the Society, when in terms of Self-Redevelopment of their own buildings.

h)       The above also means that if the Redevelopment is conducted by Builders, the Society would not earn /save the huge potential of Corpus Fund and translating the interest received on such Corpus Fund, into reducing their own Society maintenance charges.



12.   As a Public spirited legislature, AND in the larger interest of the residents of old /dilapidated buildings, the Maharashtra State Govt., would do well to consider to grant “Conveyance” of the Society plot in the name of the Society, by legal default, via a special ordinance, atleast to those Residential Societies which are over Forty years old.

This may be specially considered in view of the vast amount of Stamp Duty and Registration fees that will be accumulated by the Govt., due to registration of the new redeveloped flats.





Co-operative Seminar – 3 for the price of 1 – ICAI

Dear Co-operative Members,

The Committee for Co-operatives and NPO Sectors of the Institute of Chartered Accountants of India (ICAI) jointly with Maharashtra State Co-operative Housing Federation Ltd is organizing a National Conference on Housing Co-operatives on the 18th and 19th of July 2014 at ICAI Tower, BKC-Bandra, Mumbai.

This conference will be primarily focused on the regulatory, functional/ operational, financial, taxation, auditing and governance related aspects among others of housing co-operatives and will also include experts’ and stakeholders representatives’ panel discussions on the related topics and issues.

We are keen that you register your name through Co-operative Housing society, so that against one registration fees of Rs.1,500/- (Rs. One Thousand five hundred only) three members can attend and take the benefit of the conference. We also request you to circulate the attached program to all your know circles, members so, that they will be able to participate and interact with the experts in the field and enrich your knowledge, professional opportunities and clarity in the area of their interest.

We also request you to send us the your valuable inputs on the topics or any other issues related to Housing co-operatives you want to cover in this conference by  eminent speaker/ faculty / panel members. We request you to consider our request and do the needful at the earliest to get registration for this conference by your friends and other co-operative leaders, stakeholders to this conference at the earliest.

The registration can be done online and the details of online registration is given in the attached schedule of program for two days.  Some of the guest and speakers are subject to confirmation and the organizers reserves the right to reschedule the program as may be deem fit in the interest of making the program an interesting to all the participants.

We look forward to receiving your positive and enthusiastic response.

Warm regards,

CA Rajkumar S. Adukia
Chairman, Committee for Co-operative & NPO Sectors

With Best Regards

CA. Ramesh S. Prabhu

Co-convener, Housing Task Force of Committee for Co-operative and NPO sectors of ICAI , New Delhi

A2-302, Laram Center, S.V. Road, Opp: Railway Station

Andheri(W), Mumbai- 400 058

Tel: 9820106766022- 42551414


National Conference on HOUSING CO-OPERATIVES CPE

12 hours

Days & Dates Friday 18th July, 2014 & Saturday, 19th July, 2014.
Venue ICAI Tower, Plot no C-40, G Block, Opp. MCA Ground, Next to Standard Chartered Bank, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051
Time 10.00 a.m. to 05.30 p.m.

(Registration 09.00 a.m. to 10.00 a.m.)

Fees Registration Details:
• Registration Fees : Rs1500/- per participant

(inclusive of course material, breakfast & lunch)

Non residential and the participants have to make their own stay arrangement.
Mode of Registration & Payment:
• Offline Registration & Payment DD/Pay order/Cheque should be drawn in favour of ‘WIRC of ICAI’ payable at Mumbai and sent to ICAI Tower, Plot no C-40, G Block,Opp MCA Ground, Next to Standard Chartered Bank, Bandra Kurla Complex, Bandra (East), Mumbai – 400 051. Please mention your name, Membership number, Registration Number and contact details at the back of the cheque /demand draft.

• Online Registration & Payment : For online registration please visit:

Member : http://www.icai.org/ccm.html?progid=572
Non Member : http://www.icai.org/ccm.html?progid=573

Programme Chairman CA. Rajkumar S. Adukia,CCM
Chairman,Committee for Co- Operatives and NPO Sectors
Email id- rajkumarradukia@caaa.in
Programme Director CA. Nilesh Vikamsey
Friday 18th July, 2014
Day 1 Session Subject Matter
Inauguration Honorable Shri. Harshwardhan Shahajirao Patil

Minister of Co-operation and Parliamentary Affairs, Govt. of Maharashtra

Guest of Honour Shri. Dinesh Olkar

Commissioner and Registrar of Co-operative Societies

Session I Overview of Laws on Co-operative Societies with special reference to Housing Societies


  1. Rajkumar S. Adukia,

Central Council Member, ICAI

Session II
  • Formation of Co-operative Housing Societies
  • Drafting of Bye-Laws of Co-operative Housing Societies
  • Title of Property
  • Conveyance and Deemed Conveyance
  • Stamp Duty Planning & Registration


CA. Ramesh Prabhu

CA. Vimal Punamiya

Session III
  • Slum Rehabilitation Provisions
  • Slum Rehabilitation Authority


Shri. Nirmal Deshmukh, CEO, SRA

Shri. Milind Borikar, Joint Registrar, SRA

Session IV
  • Construction Management
  • Development Control Regulations and similar provisions of different cities
Saturday, 19th July, 2014
Day 2 Session Subject Matter
Special Address Honorable Shri. Sachin Ahir,

Maharashtra Minister of State for Housing

Session V Redevelopment:

  • Benefits of redevelopment
  • How to go for Redevelopment
  • Project Management Consultants


Adv. Ameet V. Mehta

Arch. Arvind Nandapurkar

Session VI
  • Accounting for Housing Co-operatives
  • Auditing for Housing Co-operatives


CA. Abhay Arolkar

CA. Dhondirao A. Chougule

Divisional Joint Registrar (Audit) – Kolhapur Division

Session VII Taxation of:

  • Flat Owners
  • Land owners
  • Housing Societies
  • Developers
  • Other parties involved in Housing


CA. Manish Gadia

CA. Prem Chhatpar

Session VIII Funding arrangements in Housing Sector


CA. Sanjay Shukla

MD of Cent Home Finance Ltd.

Representatives of NHB and Housing Finance Companies

Companies cannot reject claim for hospitalization intimation failure

Claim cannot be rejected for failure to intimate hospitalization in medical emergency. Consumer forum directs recovery of compensation from erring officials

Background: A mediclaim policy requires the insured to intimate the insurance company or the TPA about a hospitalization. There are times when a medical emergency may arise, where the priority is to get the patient admitted and treated, rather than waste time in digging out the policy to send an intimation about the hospitalization. In such a case, the insurance company attempts to capitalize on the non-intimation by rejecting the claim. This is not permissible as recently held by the South Mumbai District Consumer Forum in the case of Consumer Welfare Association & Anr v/s United India Insurance Co & Anr.

Impact: Maximum number of complaints at the level of the district forum are against insurance companies. Yet, there is no improvement in the attitude of insurance company officials because compensation is paid by the firm for their misdeeds. A change can be expected only if compensation pinches the pockets of erring officials. Hopefully, this judgment should start the beginning of a practice that could bring about a change in the system and compel insurance companies to behave responsibly.

Click Here for the full story by Jehangir Gai – Times of India

Charging entry fee not unfair trade practice

Background: Does the imposition of an entry fee amount to imposing unjustified costs on a consumer? Is it an unfair or restrictive trade practice? This interesting issue has been decided by the National Commission in a case filed by the Gujarat government against Big Bazar.

Case Study: Big Bazar, a department store, is a division of Pantaloon Retail. It has branches all over Ahmedabad and other cities. The store periodically frames different schemes to attract consumers and promote its business.

In 2006, the store declared Republic Day as Mega Savings Day. Advertisements were issued stating that store commodities would be sold at lower-than-usual prices, which led to a consumer rush. As the day progressed, it became impossible to regulate customer movement. To restrict entry to legitimate purchasers, the store came up with a scheme of issuing an entry coupon of Rs 50. The value of the coupons could be adjusted against purchases made, and if a coupon was partially utilized, the balance amount was to be refunded. In all, 3,900 coupons worth Rs 50 each were issued between 4pm and 10pm.

The government of Gujarat, through the weights and measures and consumer affairs department, filed a complaint before the district forum alleging that Big Bazar had adopted unfair and restrictive trade practices by collecting Rs 1,95,000 from the sale of the 3,900 coupons. The Forum observed that if the crowd was uncontrollable, the store should have called the police, but had no right to refuse entry or impose an entry fee. Upholding the Government’s contention, it directed Big Bazar to pay Rs1,95,000 along with 9% interest and Rs 10,000 towards mental agony and costs.

The National Commission said that Big Bazar had adjusted the value of the coupons against purchases and allowed the unutilized coupons to be encashed so the entry coupons did not impose any cost on a consumer. It concluded that Big Bazar had not indulged in unfair or restrictive trade practice.

Conclusion: An entry fee does not bring about a manipulation in the price of a product or service, but merely regulates customer crowd. The practice is prevalent worldwide, and is permissible.

Read the full story by Jehangir Gai in The Times of India – Click Here