In many housing societies with multiple buildings, disputes often arise over redevelopment plans. Some members may prefer to redevelop individually, but since the society is a single legal entity, redevelopment decisions must be made collectively in a General Body Meeting (GBM). However, societies can explore subdivision of the plot and the society itself under certain legal provisions.
Understanding Plot Subdivision for Redevelopment
If the society was originally formed on two separate plots that were later merged, subdivision of the plot is possible. However, authorities will evaluate Floor Space Index (FSI) consumption before granting approval.
Key Factors in Plot Subdivision:
- FSI Allocation: The existing FSI consumed by each building must be considered before subdivision.
- Municipal Approval: The local municipal authority must approve the subdivision, ensuring FSI balance between both buildings.
- Architect Consultation: An architect can assess the feasibility of plot subdivision based on existing structures and future development potential.
- Time-Consuming Process: Subdividing a plot involves legal and procedural formalities, which may take time.
If there is an imbalance of FSI consumption, authorities may reject the subdivision request. Therefore, a feasibility report is recommended before proceeding.
Can a Housing Society Be Subdivided into Two Separate Societies?
Yes, the Maharashtra Cooperative Societies (MCS) Act, 1960, allows for the subdivision of a housing society under Section 17. The Cooperation Department of Maharashtra also issued a circular dated July 30, 2004, detailing the process.
Procedure to Subdivide a Society:
- Resolution in the General Body Meeting (GBM):
- A majority of members must pass a resolution approving the subdivision.
- Feasibility Study and Documentation:
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- A technical feasibility report should be prepared, outlining the benefits and challenges of forming two societies.
- Legal and financial implications must be reviewed.
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- Application to the Deputy Registrar of Cooperative Societies:
- The society must submit a request for separation into two independent societies.
- Supporting documents such as the resolution, feasibility study, and individual building consent letters must be attached.
- Approval from the Registrar:
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- If all conditions are met, the Registrar may approve the formation of two separate societies.
Things to Consider Before Subdivision
- Feasibility Reports May Differ: The numbers in a feasibility report (prepared before subdivision) may not match the builder’s tender offer due to varying commercial considerations.
- Redevelopment Offers Might Change: Once the society is subdivided, each new society will have to negotiate separately with builders.
- Dispute Resolution is Preferred: Before opting for subdivision, amicable resolution or mediation should be explored.
Conclusion
While subdivision of both plot and society is legally permissible, it involves multiple technical and legal considerations. Redevelopment is best handled through consensus within the existing society. If subdivision is the only solution, the FSI balance, municipal approvals, and feasibility reports must be thoroughly evaluated before proceeding.
