COIMBATORE: The state govt’s recent notification of rules for redevelopment of old apartment complexes has gone down well with the builders, while leaving dwellers of such units wary.
Builders are hopeful that the new rules under the Tamil Nadu Apartment Ownership Act, 2022, would streamline redevelopment of old buildings and simplify day-to-day functioning of apartment complexes.
According to K Senthil Kumar, secretary, Federation of Coimbatore Apartment Associations, the rules provide greater clarity for builders and apartment owners on how to proceed with redevelopment. “However, the govt did not consult with stakeholders before framing these rules. They set the regulations without understanding the ground reality. We are planning to approach the govt seeking certain amendments,” he said.
One of the major concerns raised by the apartment dwellers is confusion over the laws to be followed, given that apartment associations are already governed by the Societies Registration Act. “Both – the Societies Registration Act and the Tamil Nadu Apartment Ownership Act – feature similar bylaws. We are uncertain about the set of rules to be followed. There is no clarity in the Tamil Nadu Apartment Ownership Act,” Kumar said.
The redevelopment of apartment complexes older than 30 years is another issue. As per the new rules, a redevelopment project requires only the consent of two-thirds of apartment owners.
Apartment dwellers highlighted that it wasn’t a must to redevelop structurally sound buildings, even if the structures were older than 30 years. “The provision of two-thirds majority for redevelopment could be misused. The majority could force the remaining residents for redevelopment, regardless of the building’s condition,” said D Arulkumar, a resident of an apartment at Lakshmi Mills.
R C Rajan, president, Jains West Hills Flat Owners Association at Udayampalayam, said, “If a building is well-maintained, forcing redevelopment at 30 years doesn’t make any sense. In cities such as Mumbai flats are demolished only after 50 years.”
Presently, many redevelopment projects have not taken off in the state, mainly because of lack of proper legal frameworks and differences of opinion among apartment owners. “The two-thirds majority rule is beneficial in cases where a single occupant obstructs the redevelopment of a dilapidated building. Decision-making on redevelopment will be easier,” said D Abhishek, vice-president, district chapter of Confederation of Real Estate Developers Associations of India.
Pointing out that more than 70% of owners in most of the apartment complexes were non-residents, Kumar said there should be a provision for conducting general body meetings online. “Internal disputes are one of the recurring problems in apartment communities. Hence, there should be a dispute redressal mechanism in place as well.”
Another contentious clause is regarding handling of arrears. “If a member fails to pay arrears within the set timeframe, the board of managers may take steps for recovery, including prosecution or withdrawal of services. However, there is no clarity on the services to be cut. The Supreme Court has ruled that certain essential services, such as electricity and water, should not be disconnected. The rules should align with this judgment,” Kumar said.
When contacted, a senior official with the Housing and Urban Development Department said they were reviewing the practicality of implementing the rules and will address potential issues. “We will also release an FAQ soon.”
