The Maharashtra government has tightened rules around the redevelopment of cooperative housing societies, making the process more closely supervised and transparent for members by making video recording during key meetings compulsory and setting a two-year deadline for the completion of the projects.

The new framework, issued by the Cooperation Department on September 30, replaces the July 4, 2019 government resolution, and subsequent circulars issued under it.

What changes now?

Under the revised rules, only the elected managing committee can take a decision on the society’s redevelopment.

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At least one-fifth of the society’s members can submit an application seeking a Special General Body Meeting to decide the redevelopment proposal. While the meeting requires a two-thirds quorum to take place, a preliminary decision needs approval of at least 51 percent of the society’s total members (who can be physically present) for the redevelopment work to proceed.

The revised procedure also seeks to strengthen the role of architects and Project Management Consultants (PMCs) by requiring quotations from at least three from government or local authorities’ panels. One has to be selected by the Special General Body Meeting.

The selected PMC will have to prepare a project report within two months.

How the tendering process changes

The society should ordinarily receive at least three bids. If fewer than three bids are received, the society will have to first provide a 15-day extension and, if necessary, another one-week extension before proceeding with the available bids.

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The society will have to display the list of bids on its notice board. It should then be placed before a Special General Body Meeting with a comparative statement by the architect or PMC.

The developer-selection meeting, to be video recorded, will have to be held in the presence of an authorised officer appointed by the Registrar.

The society will have to submit the minutes, written consent of members, the developer’s consent and attendance sheet to the Registrar within 14 days.

For the redevelopment, members can demand a secret ballot.

The government has also prescribed a three-month deadline to execute the development agreement after selection of the developer. The agreement must provide, among other things, for completion of the redevelopment within two years from the date of the first/plinth erection certificate. In exceptional circumstances, the period can extend to three years.

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Developers will have to provide alternative accommodation or mutually agreed rent during construction.

Importantly, members will not have to vacate their premises merely because a developer has been selected. The order requires all legal approvals and registration of the Permanent Alternative Accommodation Agreement before members vacate.

The order provides that after redevelopment, allocation of flats should be carried out through a Special General Body Meeting. Lottery, wherever required, is to be conducted by the developer after completion of the building.