Though the existing amendment to the Gujarat Ownership Flats Act (1972) was made in September 2018, it was in December 2019 that the urban development department clearly stated that the redevelopment clause also applies to housing societies governed by Gujarat Cooperatives Act.
However, since there was no office order from the Co-operatives department, many district registrars were reluctant to accept redevelopment proposals from cooperative housing societies.
Meanwhile, major issues are arising out of situations where 25% residents do not agree to redevelopment. Surendra Shah of Vaikunth society in Maninagar says, “In the existing GOF Act, state needs to make clear the legal procedures to be followed in cases 25% members of a society do not consent to redevelopment.”
Similar issue is being faced by residents of Shri Vivekanand Society in Jodhpur where the developer for past two years is paying transit rent for all 76 members but the project is yet to take off as two members have disagreed.
A major potential also lies in many societies constructed by the Gujarat Housing Board. Recently, the state cleared a proposal to convert housing units of the Gujarat Housing Board from leasehold to freehold on payment of a fixed jantri amount.
Apart from generating income for the state government, the move will pave the way for residents to own such properties, which they currently hold on lease. Not only will the residents get higher income from sale of these properties, they can also opt for redevelopment.