ADV. VINOD C. SAMPAT
PRESIDENT
CO-OPERATIVE SOCIETIES
RESIDENTS USERS
& WELFARE ASSOCIATION
 HAVE
TRANSPARENCY.
 MEMBERS SHOULD NOT MEET THE
DEVELOPER INDIVIDUALLY.
 AS FAR AS POSSIBLE HAVE ALL THINGS
MENTIONED IN THE TENDER DOCUMENT.
 FORM DIFFERENT COMMITTEES.
 EG.
 (a)
LEGAL COMMITTEE.
 (b) TECHNICAL COMMITTEE TO LIASON WITH
ARCHITECT.
 (c) COMMITTEE TO INSPECT BUILDINGS AND
LIASON WITH DEVELOPERS
 (d) INVOLVE THE PROJECT MANAGEMENT
CONSULTANT FROM DAY ONE
 (e) STUDY THE FEASIBILITY REPORT
 (f)
THERE IS NO SUBSTITUTE AS REGARDS
VISITING THE PROJECTS ACTUALLY
DONE BY THE BUILDER AND GETTING
FIRST HAND INFORMATION FROM THE
RESIDENTS OF THE REDEVELOPED
BUILDINGS ALREADY DEVELOPED BY
THE BUILDERS.
 NOT
NECESSARY TO GIVE CONTRACT TO
THE DEVELOPER WHO IS GIVING THE
HIGHEST OFFER.
 HAVE
A SYSTEM WHEREBY SOME
MEMBERS SHOULD TALK IN FAVOUR OF
BUILDER
AND
OTHERS
SHOULD
EMPHASISE ON POINTS IN FAVOUR OF
MEMBERS.(I.E. DIVIDE AND RULE POLICY)
 NOTHING
WRONG IN FORMALLY
PRESSURISING THE
BUILDER IN SOCIETIES
INTEREST.
(Some may call it emotional blackmail. I
would call it smart bargaining in societies
interest)
 EG.
FEMALE MEMBERS
SHOULD INSIST THAT
APART FROM OTHER THINGS, SUFFICIENT
SPACE SHOULD BE THERE ABOVE THE
BATHROOM & WC AREA TO STORE THE
HOUSEHOLD GOODS WHICH WILL RESULT
IN INCREASE IN THE HEIGHT OF THE FLAT.
WE EARLIER HAD VENTIALTION ABOVE THE
DOOR WHICH IS RARELY FOUND NOW.
 HAVE
A SYSTEM OF SHORTLISTING BUILDERS.
SAY OUT OF 10 BUILDERS 6 ARE SHORT LISTED
FIRST. SOME OF YOUR MEMBERS SHOULD
REMAIN IN TOUCH WITH THE BUILDERS WHO
HAVE BEEN REJECTED. THERE IS A PROBABILITY
THAT YOU WOULD GET SOME INFORMATION
FROM THE BUILDERS WHICH HAVE BEEN SHORT
LISTED.
A
FEW MEMBERS SHOULD BE
 CRITICS AND SHOULD ASK
 HARD HITTING QUESTIONS
 TO THE DEVELOPERS.
 EG. IF YOU DO NOT COMPLETE THE PROJECT
THEN WHAT? SAY LEVY OF PENALTY IS THE
REPLY. IF AFTER PAYMENT OF PENALTY OF
THREE MONTHS TO EACH MEMBER NOTHING
WORKS OUT THEN WHAT?
FIND OUT THE ACTUALS SUBMISSIONS BEING MADE
BY THE DEVELOPER IN HIS EARLIER COMPLETED
PROJECTS IN WRITING IN TERMS OF SPECIFIC
QUESTIONS NAMELY : (a) DATE OF SUBMISSION OF OFFER.
 (b) DATE OF EXECUTION OF DEVELOPMENT
AGREEMENT.
 (c) Date on which permission was obtained from
Registrar u/s. 79A of MCS Act for
Redevelopment of Building.

(d) DATE OF RECEIPT OF IOD.
 (e) DATE OF REGISTRATION OF DEVELOPMENT
AGREEMENT.
 (f) DATE OF REGISTRATION OF INDIVIDUAL
AGREEMENTS.
 (g) DATE OF OCCUPATION CERTIFICATE.
 (h) DATE OF RECEIPT OF BUILDING COMPLETION
CERTIFICATE.

 (i)
DETAILS OF COURT CASES GOING ON OF
THE DEVELOPER.
 (j) DETAILS OF BUILDINGS COMPLETED BY
THE DEVELOPER AS WELL AS OF HIS SISTER
CONCERNS WITH DOCUMENTARY EVIDENCE
SUBSTANTIATING THE FACT THAT THE
SISTER COMPANY IS ACTUALLY A SISTER
COMPANY OF THE DEVELOPER.
 PLEASE
INSIST FOR A WRITTEN
CONFIRMATION FOR THE SAME FROM THE
SISTER CONCERN.
 TO HAVE A SYSTEM OF HAVING WRITTEN
OPINION OF THE VARIOUS SUB
COMMITTEES / PROFESSIONALS OF THE
SOCIETY WITH DEADLINES FOR SPECIFIC
ACTS.
 CHECK
ON THE FINANCIAL INVOLVEMENT
OF THE BUILDER. ENSURE THAT THE TDR IS
PURCHASED IN SOCIETIES NAME.
 VERIFY
IF HE HAS FINANCIALLY
DEFAULTER IN PAYING RENT, CORPUS IN
ANY OF HIS EARLIER PROJECTS. TELL YOUR
CHARTERED ACCOUNTANT TO VERIFY HIS
BALANCE SHEET.
 DO
NOT PERMIT THE
BUILDER TO TAKE LOAN
FROM FINANCIAL
INSTITUTIONS ON THE PROPERTY OF THE
SOCIETY. OFCOURSE LOANS MAY BE TAKEN
BY THE NEW FLAT PURCHASERS AS REGARDS
FLATS PURCHASED BY THEM.

FOR YOUR OWN SAFETY MAKE IT VERY CLEAR TO THE
PROSPECTIVE DEVELOPER THAT THE SOCIETY WILL
HAVE A LIEN ON TWO FLATS TILL BUILDING
COMPLETION CERTIFICATE IS OBTAINED. VERY FEW
BUILDERS EVEN OF REPUTE OBTAIN
BUILDING COMPLETION CERTIFICATE.
 INSIST
FOR A GUARANTEE OF AT LEAST
THIRTY YEARS FOR STRUCTURAL DEFECTS. THE
GROUND REALITY, AS TOLD TO ME BY ONE
STRUCTURAL ENGINEER IS THE
CONSTRUCTIONS BEING DONE IN 2010 &
ONWARDS IN MUMBAI ARE OF A
VERY
POOR QUALITY. THE REASON
FOR THE SAME IS THAT :-
 HARDLY
ANY SAND IS BEING USED THESE
DAYS IN MUMBAI DUE TO GOVERNMENT
RESTRICTIONS. THE MUD BEING USED
WILL
EFFECT
THE
QUALITY
OF
CONSTRUCTION AND IT IS QUITE LIKELY
THAT REGULAR MAINTENANCE EXPENSES
WILL HAVE TO BE INCURRED BY SOCIETY
IN ABOUT FIVE YEARS TIME.

HAVE A GOOD STRUCTURAL ENGINEER IN YOUR TEAM.
 PLEASE
DO NOT BLINDLY
 TRUST YOUR MANAGING
 COMMITTEE MEMBERS. THERE
 ARE
INSTANCES
WHERE
MANAGING
COMMITTEE MEMBERS, PROFESSIONALS OF
SOCIETY ACT AS AGENTS OF BUILDERS AT TIMES
FOR PERSONAL GAINS.
USE LATEST TECHNOLOGY.
 (a) ALWAYS VIDEO
 RECORD EACH AND EVERY MEETING.
 PARTICULARLY THE MEETINGS / MOBILE CALLS YOU
HAVE WITH THE DEVELOPER.
 MAKE IT A POINT NOT TO TRUST ANY VERBAL
PROMISES GIVEN BY THE BUILDER. EXPERIENCE HAS
SHOWN THAT TONE OF DEVELOPER CHANGES ONCE
POSSESSION OF FLAT IS GIVEN TO DEVELOPERS.

 ENSURE
THAT ALL MAJOR DECISIONS ARE
TAKEN AT THE GENERAL BODY MEETINGS.
 HAVE A CLEAR CUT IDEA IN ADVANCE OF
THE INCREASE OF AREA REQUIRED BY
MEMBERS IN ADDITION TO THE EXTRA
AREA OFFERED BY BUILDER.
 PLEASE
ENSURE THAT THE FLAT NO. &
AREA IS CERTIFIED BY BUILDERS AS WELL
AS HIS ARCHITECT. THE SAME MUST BE
MENTIONED
IN
THE
INDIVIDUAL
AGREEMENT WHICH SHOULD BE STAMPED
AND REGISTERED. THE ANNEXURES TO THE
AGREEMENT MUST INCLUDE A COPY OF
THE IOD.
 TIP
WHILE DEALING WITH PROFESSIONALS OF
SOCIETY LIKE LAWYER, PROJECT MANAGEMENT
CONSULTANT, CHARTERED ACCOUNTANT.
 TALK
WITH THE OFFICE BEARERS OF SOCIETY
WHERE THE PROFESSIONALS HAVE DONE THE
WORK OF REDEVELOPMENT FOR THE SOCITY.
 HAVE
SPECIFIC CLAUSES IN THE AGREEMENT
THAT THE SOCIETY WILL COLLECT THE FEES OF
THE
SOCIETIES
PROFESSIONAL
FROM
DEVELOPER AND PAY IT TO THE
PROFESSIONALS. DO NOT ALLOW THE
DEVELOPER TO PAY THE FEES TO THE SOCIETIES
PROFESSIONAL DIRECTLY.
 HAVE
WRITTEN OPINION AS REGARDS
VARIOUS LIABILITIES OF
 SERVICE TAX,
 WORK CONTRACTS TAX,
 STAMP DUTY
 INCOME TAX
 TIP
TO INDIVIDUAL MEMBERS
KEEP TRUST ON MANAGING COMMITTEE MEMBERS
BUT DO NOT KEEP BLIND TRUST.
 SPECIFIC CLAUSE IN THE INDIVIDUAL AGREEMENT BY
WHICH DATE POSSESSION WITH BUILDING
COMPLETION CERTIFICATE AND/OR OCCUPATION
CERTIFICATE WOULD BE GIVEN AND THE PENALTY IF
THE SAME IS NOT GIVEN BY THE STIPTULATED DATE.

TIPS TO BE DISCUSSED WITH
 ARCHITECT

THE DESIGN OF THE NEW BUILDING
SHOULD BE SUCH THAT THERE IS
SUFFICIENT OPEN SPACE IN FRONT OF EACH FLAT SO
THAT AT A LATER DATE THE FLAT PURCHASER CAN USE
IT EXCLUSIVELY FOR HIS BENEFIT. EG. KEEPING TWO
WHEELERS, SPACE FOR SERVANTS TO SLEEP ETC.
 SOCIETY
OFFICE AND GYMNASIUM ARE NOT
INCLUDED IN FSI CALCULATION. MAKE IT A
POINT TO INSIST FOR THE SAME IN THE
DEVELOPMENT AGREEMENT.
 AS FAR AS POSSIBLE THERE SHOULD BE NO
APPLICATION FOR OPEN SPACE DEFICIENCY AS
CHILDREN WOULD BE DEPRIVED OF PLAY
AREAS, GARDEN ETC.
AMENITIES THAT SHOULD BE
INSISTED UPON FOR THE
BUILDING
 ONE FEET ABOVE THE NORMAL
ROAD HEIGHT
 STANDARD AMENITIES IN CONSULTATION WITH THE
PROJECT MANAGEMENT CONSULTANT

 AMENITIES
FOR THE INDIVIDUAL FLAT
THREE PHASE METER
 POP FINISH
 AS MENTIONED IN THE TENDER DOCUMENT AND THE
SAME MUST BE SUPERVISED BY THE PROJECT
MANAGEMENT CONSULTANT (A CLASS MATERIAL IN
BUILDING LINE MEANS INFERIOR QUALITY
MATERIAL)

 TIP


STAMP DUTY & REGISTRATION
HAVE THE COPY OF THE SPEAKING ORDER FROM STAMP
DUTY AUTHORITIES IN ADVANCE ON UNSIGNED
AGREEMENT. THIS WILL ALSO HELP YOU IN KNOWING
THE STAMP DUTY LIABILITY AS WELL AS THE
REGISTRATION FEE AMOUNT.
HAVE MORE THAN ONE COPY OF THE AGREEMENT
REGISTERED WITH THE SUB REGISTRAR OF ASSURANCES.
THIS WOULD BE HANDY TO PROCESS BANK LOANS.
 MAXIMUM
REGISTRATION FEE AS OF DAY IS
RS.30,000/-. THERE WAS A MOVE TO
INCREASE IT TO 1% OF THE MARKET VALUE.
 DO NOT ALLOW SUPPLEMENTARY AGREEMENT
TO BE EXECUTED JUST FOR THE PURPOSE OF
SAVING STAMP DUTY AND REGISTRATION
FEES. EVEN IS SUPPLEMENTARY AGREEMENT
HAS TO BE EXECUTED THE SAME SHOULD BE
STAMPED AND REGISTERED.



CLAUSES IN THE DEVELOPMENT AGREEMENT SHOULD
INCLUDE
LIEN ON THE NEWLY CONSTRUCTED FLAT FOR OBTAINING
BUILDING COMPLETION CERTIFICATE, RENT AMOUNT.
ALL TAXES DIRECTLY AND / OR INDIRECTLY RELATED TO
CONSTRUCTION INCLUDING BUT NOT RESTRICTED TO
VAT, SERVICE TAX, INCOME TAX IF APPLICABLE WILL BE
PAID AND/OR INDEMNIFIED BY THE BUILDER.
 POSSESSION
TO NEW FLAT PURCHASER TO BE
GIVEN ONLY AFTER TWO MONTHS PERIOD HAS
PASSED SINCE THE DATE THE FLAT IS OFFERED
TO THE EXISTING FLAT PURCHASERS.
 BAR CHART TO BE ANNEXED TO DEVELOPMENT
AGREEMENT.
 SAME TYPE OF AMENITIES TO BE PROVIDED IN
THE NEWLY CONSTRUCTED FLAT.
USE CLAUSES SUCH AS NOTWITHSTANDING
ANYTHING CONTAINED TO THE CONTRARY…..
 ALL EXPENSES FOR LITIGATION SHOULD BE ON THE
DEVELOPER.
 AS FAR AS POSSIBLE DO NOT INCLUDE A CLAUSE FOR
ARBITRATION. REASON THE FEES FOR THE SAME ARE
HIGH AND …………….?
 NO CHANGES SHOULD BE ALLOWED IN BUILDING
PLAN WITHOUT GENERAL BODY’S CONSENT.

ALL CORRESPONDENCE DONE BY DEVELOPER AND /
OR HIS PROFESSIONALS WITH GOVERNMENT
AUTHORITIES, QUASI GOVERNMENT AUTHORITIES
OTHER PERSONS SHOULD BE GIVEN TO THE SOCIETY
WITHIN SEVEN DAYS.
 HAVE A CLAUSE IN THE AGREEMENT THAT THE
BENEFITS OF CHANGES IN GOVERNMENT POLICIES
LIKE INCREASE OF FSI SHOULD GO EXCLUSIVELY TO
SOCIETY AFTER REIMBURSING THE COST INCURRED
BY THE DEVELOPER

 REMEMBER
 BUILDER
OR THE SOCIETY DOES NOT HAVE
ANY RIGHT TO SELL OPEN CAR PARKING
SPACE, STILT CAR PARKING SPACE OPEN
TERRACE OR GARDEN IN FRONT OF THE FLAT.
MOFA ACT IS VERY CLEAR EACH AND EVERY
FLAT PURCHASER HAS PAID FOR THE
COMMON AREAS AND AMENITIES.
 ALWAYS TAKE THE COPY OF THE PLAN FROM
THE GOVERNMENT AUTHORITIES.
 STATUTORY
OBLIGATIONS WILL ALWAYS
SUPERCEED CONTRACTUAL OBLIGATIONS.
 BUILDER IS A VISITING FACULTY IN THE LIFE OF
THE BUILDING.
 PREVENTION IS ALWAYS BETTER THAN CURE SO
TAKE PERSONAL INTEREST AND BE ACTIVELY
INVOLVED AND DO NOT LEAVE EVERYTHING
ON YOUR COMMITTEE.
IF YOU HAVE ANY SUGGESTIONS YOU MAY SEND IT TO
ADVOCATE VINDO C. SAMPAT
201, SHRIMAD DARSHAN,
92 RAMBAUG LANE,
OPP. TILAK ROAD LIONS GARDEN,
GHATKOPAR EAST,
MUMBAI 400 077
MOBILE 93240 38095 /99876 22225
vinodsampat@gmail.com