MIG members challenge redevelopment deal

A few shareholders of the Middle Income Group Consumer Co-operative Society (MIGCCS) in Bandra (East) have complained to the authorities that the managing committee has entered into a redevelopment agreement without taking the members into confidence.

MIGCCS, which was set up in 1960 with over 450 shareholder members, is spread over an area of 5,024 sq ft. There are three commercial establishments operating from the premises.

The society, it is said, got into a redevelopment agreement with Rustomjee developers in 2007. According to this, the society would get Rs3.25 crore and an extra space of 3,000 sq ft post redevelopment. Subsequently, the terms were revised and the society was to get Rs3.5 crore and about 3,500 sq ft area.

Yet, some shareholders felt that this was grossly beneficial to the developer. "They have not done proper negotiations. During the special meeting, when they passed the resolution, the committee members didn't respond to some of the queries that we had raised," said SB Bajpai, former chairman of the committee and a shareholder.

The shareholders also allege that the redevelopment proposal was passed at a special meeting on August 31 without proper quorum. "There were only around 30 members who were in favour of the proposal. At least 75 per cent attendance is required in such a case. Most shareholders were not informed that such a proposal has been passed," he said.

Shareholders say the committee was stonewalling any queries. "They even refused to accept a letter from us seeking details of the shareholders," said Gopaldas Jalan, another shareholder. They have also not got the details of the minutes of the meeting of the special meeting at which the proposal for redevelopment was cleared.

The managing committee has refuted the allegations. "We have acknowledgments of the notices sent to all shareholders. We replied to their querie,s but there were some unauthorised elements who entered," said Suresh Kadam, chairman of the managing committee.

With respect to the quorum, he said, "According to the bye-laws if the sufficient number of shareholders are not present, after adjourning the meeting for some time we can pass the agenda with the existing strength." A committee member said that under the rules the minutes of the meeting should reach the members in 90 days.

"Parties have to honour the deal. The parties cannot keep changing their position as the market changes. The rules have changed too. Previously societies accepted a premium. Now they demand more area. We stuck with the project even though there were issues. It takes five to seven years for a project to take off. I feel it is a raw deal for us, but we have stuck to our deal," said Chandresh Mehta, director, Rustomjee.

Ravindra Itkar, assistant registrar (cooperative societies), H/East ward, when contacted told dna, "We have called for an explanation. We will understand the matter and decide what to do. We will call them for hearing after that. But this will be after the elections as I am now on election duty."