'Society can sack builder over DA'

Q. Is it true that the by-laws allow a society to terminate the developer if no development agreement (DA) is executed?

- Sharmila Ranade

Pawan Kumar Singh, Malad

A. By-law 175 lays down the procedure regarding redevelopment of the cooperative housing society. The society is required to adopt the procedure for redevelopment as prescribed in the government resolution dated July 4, 2019, issued in accordance with section 79A of the Maharashtra Co-operative Societies (MCS) Act.

Once the developer is selected in the presence of the authorised officer of the registrar, the society has to issue a letter of appointment as per the section 79A guidelines. The developer is required to execute the DA within three months from such appointment. Many times, the DA is not executed for months due any dispute arising at a later stage or for some other reason best known to the developer. In such a case, the society can cancel the resolution appointing the developer and pass another resolution to appoint a new developer from the panel of the approved developers.