Non-consenting members in a minority cannot halt redevelopment of housing society

MUMBAI: In a landmark order, the Bombay High Court ruled that non-consenting members who are in a minority cannot stop redevelopment and are bound by the agreement executed between society and developer.

The order pertained to Borla Cooperative Housing Society, a residential complex near Golf Course in Chembur, one of the suburbs in Mumbai.

Mumbai-based real-estate developer Vardhman Group had filed a plea against 45 non-consenting members for creating hurdles in redevelopment of the society. The realty company entered into agreement with the society in 2007, where out of 224 members, 179 of them gave the consent and 45 members were opposing the move which was challenged in the High Court in 2009.

“Minority of the non-consenting members cannot stop redevelopment and are bound by the agreement executed between society and developer,” observed Justice Roshan Dalvi in her order. “If non-consent members don’t vacate the premises with in 45 days from notice by developer to vacate, court receiver to take possession of the premises and hand it over to Vardhman Developer,” the order said.

The company is planning to redevelop 4.5 lakh sq ft at Borla Co-Housing Society. “We will give 3bhk flats in the same society to all 224 flat owners,” said Rajesh Vardhan, MD, Vardhman Group. “The property is adjoining the largest golf course of Mumbai and the total ticket size of the project would be around Rs 1000 crore which also includes the land value.”

“This order sets the precedent that the will of majority prevails,” said advocate Chirag Balsara, who is representing the realty company in the matter. “The court had recognized the genuine difficulties of majority residents who were staying in dilapidated buildings.”