#redevelopment agreement

Bombay High Court rules that dissenting housing society members, even if non-signatories to a redevelopment agreement, must vacate flats under Section 9 of the Arbitration Act if the developer complies with the agreement and the majority approves redevelopment. The ruling clarifies that interim relief under Section 9 extends to non-signatories when the agreement's terms are legally binding on all members.

Bombay HC clarifies that dissenting members of a cooperative housing society cannot be compelled to vacate premises under a redevelopment agreement until the developer obtains Full IOD and fulfills all contractual conditions. The court held that mere submission of Consenting Member Declarations does not override the statutory safeguards for dissenting members, ensuring interim relief under Section 9 of the Arbitration Act.

The Maharashtra State Consumer Commission ruled that developers are liable for deficiency in service under the Consumer Protection Act, 1986, for failing to deliver redeveloped flats and pay transit compensation. The ruling reinforces that flat owners are 'consumers' entitled to compensation for delays and unfair trade practices, setting a precedent for similar redevelopment disputes.

The ITAT Mumbai has ruled that a cooperative housing society cannot be taxed on the notional value of a redevelopment agreement unless there is actual receipt of consideration, transfer of ownership, or performance of contractual obligations. This clarifies that enhanced amenities, savings on construction costs, or stamp duty payment alone do not constitute taxable income under 'Income from Other Sources', offering critical relief to societies nationwide undergoing redevelopment.

Bombay High Court rules that termination of a redevelopment agreement does not entitle the developer to retain the FSI purchase price, as Section 64 of the Contract Act mandates restitution to prevent unjust enrichment. The society is directed to refund Rs. 7.08 crore to the developer, reinforcing contractual fairness in property disputes.

NCDRC holds that unregistered indemnity deeds can be relied upon to establish liability for deficiency in service under Consumer Protection Act, 1986, when compensation is sought for breach.

Bombay High Court holds that developer's prolonged inaction in municipal redevelopment justifies termination; interim relief under Section 9 denied where tenant rights outweigh developer's profit interests.