FRAUDULENT RECORDS CREATED BY MANAGING COMMITTEE – EFFECT ON REVERSIONARY INTEREST- CONSEQUENCES
WHAT IS THE PROCESS OF PURCHASING REVERSIONARY INTEREST? IS DEEMED CONVEYANCE A FINAL TITLE WITHOUT CONVEYANCE OF REVERSIONARY INTEREST? DOES REVERSIONARY INTEREST EXTINGUISH AFTER GETTING DEEMED CONVEYANCE? WHAT ARE CONSEQUENCES OF FRAUD PLAYED BY THE COMMITTEE BY FABRICATING TITLE RECORDS? First let us see What is Lease? Under Transfer of Property Act 1882 its defined in Section 105 Lease defined. A lease of immoveable property is a transfer of a right to enjoy such property, made for a certain time, express or implied, or in perpetuity, in consideration of a price paid or promised, or of money, a share of crops, service or any other thing of value, to be rendered periodically or on specified occasions to the transferor by the transferee, who accepts the transfer on such terms. Lessor, lessee, premium and rent defined. — The transferor is called the lessor, the transferee is called the lessee, the price is called the premium, and the money, share, service or other thing to be so rendered is called the rent How is Lease determined? It is provided in the Transfer of Property Act 1882. Section 111 Determination of lease. — A lease of immoveable property determines—(a)by efflux of the time limited thereby;(b)where such time is limited conditionally on the happening of some event—by the happening of such event;(c)where the interest of the lessor in the property terminates on, or his power to dispose of the same extends only to, the happening of any event—by the happening of such event;(d)in case the interests of the lessee and the lessor in the whole of the property become vested at the same time in one person in the same right;(e)by express surrender; that is to say, in case the lessee yields up his interest under the lease to the lessor, by mutual agreement between them;(f)by implied surrender;(g)by forfeiture; that is to say, (1) in case the lessee breaks an express condition which provides that, on breach thereof, the lessor may re-enter; or (2)in case the lessee renounces his character as such by setting up a title in a third person or by claiming title in himself; or (3)the lessee is adjudicated an insolvent and the lease provides that the lessor may re-enter on the happening of such event; and in any of these cases the lessor or his transferee gives notice in writing to the lessee of his intention to determine the lease; (h)on the expiration of a notice to determine the lease, or to quit, or of intention to quit, the property leased, duly given by one party to the other. Illustration to clause (f)A lessee accepts from his lessor a new lease of the property leased, to take effect during the continuance of the existing lease. This is an implied surrender of the former lease, and such lease determines thereupon. DEEMED CONVEYANCE- REVERSIONARY INTEREST Buying private reversionary rights means, purchasing the right of an original owner (Reversioner) to get their property back after a temporary interest (like a lease or life estate) ends. This process involves a formal “Deed of Conveyance” to transfer these future ownership rights, allowing the buyer […]
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SELF REDEVELOPMENT AUTHORITY PLANNED REDEVELOPMENT – SUGGESTIONSThe government of Maharashtra is actively pursuing the establishment of a dedicated Redevelopment Oversight Authority. This body would function as an independent authority to regulate, streamline, and monitor all types of redevelopment projects across the state, with a specific focus on increasing transparency and resolving disputes.A suggestion was floated by writer of this blog. It is now under consideration.Moving forward what are suggestions? Establishment of a judicial body with judicial powers to monitor and resolve issues including of title of land (which is not with RERA); If government is of the opinion that right of civil court will be ousted, then Development Authority must be empowered to refer the issue to Civil Court. Key Details and Objectives Scope: The proposed authority would have specialized jurisdiction over all redevelopment projects, including those initiated by private developers, self-redevelopment schemes by cooperative housing societies (CHS), cluster redevelopment, and Slum Rehabilitation Authority (SRA) projects. Aims: The primary goals are to accelerate project timelines, enhance accountability, and provide regulatory clarity, addressing common challenges like bureaucratic delays, opaque agreements, and litigation that often stall projects. Functions: Streamlined Approvals: Act as a single-window clearance mechanism to facilitate faster project sanctions. Monitoring and Compliance: Monitor project progress using technology-enabled reporting and enforce penalties for undue delays. Dispute Resolution: Serve as a quasi-judicial body to mediate and resolve conflicts between residents, developers, and planning authorities. Standardization: Standardize procedures for project planning, developer selection, and financial approvals Current StatusThe state government has already established a separate Self Redevelopment Authority (SRA, distinct from the Slum Rehabilitation Authority) to specifically promote and expedite projects undertaken by housing societies themselves, appointing a chairman for the new body. The broader, overarching Redevelopment Oversight Authority for all project types is currently in the planning stage, with high-level committees having submitted reports recommending its formation.This initiative is expected to have a significant impact on urban areas like Mumbai and Pune, where aging buildings and high demand make redevelopment a critical part of the urban growth strategy. Maharashtra’s Self-Redevelopment Rules, guided by Government Resolutions (GRs) from 2019 and subsequent amendments, enable housing societies to redevelop buildings over 30 years old, offering benefits like extra Floor Space Index (FSI) and incentives, requiring society ownership, member consent (typically 70%+), appointing experts (PMC, Architect), and securing loans via banks like MDCC Bank, streamlining approvals with a single-window system for transparency, but necessitate adherence to Maharashtra Cooperative Societies Act rules.Key Eligibility & Requirements: Age: Building must be 30+ years old. Ownership: Society must own the land (Conveyance Deed) or have a valid purchase agreement. Registration: Must be registered under the Maharashtra Cooperative Societies Act, 1960. Consent: At least 70% member consent is generally needed for major decisions. Audit: Societies need ‘A’ or ‘B’ audit class for loans. Benefits & Incentives: Extra FSI/TDR: Societies get 10% more FSI/incentive space than usual. Reduced Costs: Lower premiums, taxes, and charges. Single Window: Streamlined approvals via a nodal agency. Process Overview: Formation: Society decides on self-redevelopment. Appointment: Appoint Project Management Consultant (PMC), Architect, Legal Advisor. Approvals: Secure initial permissions (IOD/LOA) at society cost. Loan: Apply to banks like Mumbai […]
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THE INSOLVENCY AND BANKRUPTCY CODE (IBC) AND THE STATE REGULATORY AUTHORITY (SRA) CAN HAVE CONFLICTS IN HOW THEY HANDLE CORPORATE INSOLVENCY.
The Slum Rehabilitation Scheme (SRS) and the Insolvency and Bankruptcy Code (IBC) are different frameworks that are used to address housing issues and insolvency. Slum Rehabilitation Scheme (SRS) A PPP scheme that encourages private developers to invest in slum rehabilitation projects The Slum Rehabilitation Authority (SRA) oversees, coordinates, and approves the SRS The SRS offers extra Floor Square Index (FSI) to developers in exchange for their investment Insolvency and Bankruptcy Code (IBC) A structured framework that helps resolve insolvencies The IBC aims to recover maximum asset value and resolve distressed entities quickly. The IBC has a stipulated resolution time of 330 days, including litigations POWERS OF SRA Attachment of property The SRA (Slum Rehabilitation Authority) may want to attach property under the PMLA, but the IBC’s Section 32A protects property from confiscation. Pre-CIRP electricity dues The SRA shouldn’t be held liable for pre-CIRP electricity dues once a resolution plan is approved. Stay of acquisition process The RP may want to stay the SRA’s acquisition process, but the HC ruled that the IBC doesn’t allow staying the operation of another law remove defaulting developers under the Insolvency and Bankruptcy Code (IBC). How the SRA can pursue avoidance applications If the Resolution Plan gives the SRA the power to pursue avoidance applications, then the SRA can do so. The SRA can pursue avoidance applications that were filed by the erstwhile Administrator and are pending before the NCLT. How the IBC prevails over other laws The IBC’s Section 238 states that the IBC prevails over other laws in cases of conflict. In the case of Rakesh Kumar Gupta v. Mahesh Bansal, the NCLT ruled that the IBC’s Section 7 can be applied even if there are proceedings pending under other laws. The IBC is a more recent special legislation, so it prevails over earlier laws. However, the IBC is a special legislation that prevails over other laws, including the SRA, in cases of conflict. the Insolvency and Bankruptcy Code (IBC) of 2016 prevails over other laws if there is a conflict, according to Section 238 of the IBC. This means that the IBC takes precedence over any other law, including state enactments. How IBC prevails over other laws. Section 238 includes a “non-obstante clause” that neutralizes any contrary provisions. The IBC’s provisions have effect notwithstanding anything inconsistent with any other law. The IBC’s overriding effect has been upheld by the Supreme Court. Examples of IBC overriding other laws: In Leo Edibles & Fats Ltd v. the Income-tax Department, the court ruled that the IBC overrides the Income Tax Act when determining dues during liquidation. In Alchemist Asset Reconstruction Company Limited v Hotel Gaudavan Private Limited and Others, the Supreme Court ruled that the IBC prevails over state enactments. BUT SLUM LAW AND IBC VIEW OF COURT IS AS UNDER: The provisions of the IBC are not meant to defeat slum redevelopment and similar or allied statutes. To hold otherwise would simply be unthinkable. It would mean that a Writ Court would put a premium on corporate wrongdoing and that even a defaulting corporate debtor who had not complied with the terms of a LoI […]
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