Legal Guide to Redeveloping a Cooperative Housing Society Building in Maharashtra

Introduction

Under Section 79(A) of the Maharashtra Cooperative Societies Act, 1960, the Government of Maharashtra issued directives for redevelopment of cooperative housing societies via its Circular dated 03/01/2009 and dated 04/07/2019. The following outlines the legal process to ensure a smooth redevelopment.

Steps for Redevelopment

1. Initiating the Process

• At least 1/5 of society members must submit a written requisition to the Secretary of the Managing Committee, proposing redevelopment.
• Members must include a preliminary scheme and suggestions.

2. Convening a Special General Body Meeting (SGBM)

• The Managing Committee must acknowledge the requisition within 8 days.
• A SGBM should be convened within 14 days, with notice and agenda shared with members.
• Prior to the meeting, obtain a panel of government-approved architects or project management consultants (PMCs) and invite quotes from at least five experts.

Agenda for SGBM:

1. Assess the need for redevelopment.
2. Select an architect/PMC.
3. Outline the redevelopment program.
4. Collect written suggestions from members.

3. Quorum and Decisions at SGBM

• Quorum requires at least 2/3 of members to attend. If unmet, the meeting is adjourned for 8 days.
• Decisions, including the approval of redevelopment, require a 51% majority vote.
• The selected architect/PMC’s role, terms, and conditions are finalized.

4. Issuing Minutes and Appointment Letters

• Minutes of the meeting must be circulated to members within 10 days.
• The Secretary issues an appointment letter to the selected architect/PMC within 15 days, formalizing terms through a written agreement.

Role of the Architect/PMC

Initial Tasks:

1. Conduct a survey of the society’s land and buildings.
2. Verify land conveyance and regulatory compliance.
3. Assess FSI/TDR potential and government policies.
4. Draft a redevelopment project report addressing members’ requirements.

Report Submission:

• The PMC must prepare and submit the report within two months.
• A joint meeting will be convened to review and approve the report, with provision for member suggestions.

Tender Process and Developer Selection

1. Invitation of Tenders

• Post report approval, the PMC drafts a tender document for competitive bidding.
• The Secretary compiles and displays a list of received bids.

2. Special General Body Meeting for Developer Selection

• The Registrar appoints an authorized officer to oversee the SGBM for developer selection.
• Developers present their proposals, followed by member discussions.
• Developer selection requires a 75% majority.

3. Developer Agreement

A legally binding agreement is executed with the selected developer, covering:

1. Project completion within 2-3 years.
2. 20% of the project cost as a bank guarantee.
3. Alternate accommodation or rent for members.
4. Registration under the Registration Act, 1908.
5. Protection of members’ existing rights and allotment process post-construction.

Additional Safeguards

1. Developers cannot transfer rights without society approval.
2. Committee members must not have conflicts of interest with the developer.
3. Members vacate premises only after receiving necessary approvals.
4. All approved building plans must be shared with members upon request.

Conclusion

Adhering to these directives ensures transparency, protects members’ rights, and facilitates efficient redevelopment. Societies must exercise due diligence throughout the process to safeguard collective interests.