The state government’s revised redevelopment framework aims to strengthen transparency and accountability in cooperative housing societies, with stricter rules for developer selection, member consent and project completion timelines.
The Maharashtra government has barred managing committee members and their relatives from becoming developers for the redevelopment of their own cooperative housing societies under its revised guidelines issued on September 30.
The restriction forms part of a wider overhaul of the redevelopment process, intended to improve transparency and protect the interests of society members. The new framework replaces the government’s July 4, 2019 resolution and subsequent circulars.
Under the revised rules, only an elected managing committee can take decisions on a society’s redevelopment. Administrators and authorised officers cannot make these decisions.
The guidelines also introduce a more structured process for selecting developers, including competitive bidding, greater scrutiny of proposals and mandatory documentation.
Stricter Developer Selection Process
Housing societies are required to invite at least three bids from developers. If fewer than three bids are received, the tender period must be extended before the available proposals can be considered.
The developer selection meeting must be held in the presence of an authorised representative of the registrar and video-recorded. Members must also be given access to redevelopment-related documents, including meeting minutes, tender papers, project reports and draft agreements.
A redevelopment resolution requires a two-thirds quorum at the special general meeting and approval from at least 51% of the society’s total membership, subject to the prescribed participation requirements. Written consent from members voting in favour is also mandatory.
Two-Year Completion Deadline
The revised framework requires redevelopment projects to be completed within two years from the date of the relevant foundation or plinth certificate. The deadline may be extended to a maximum of three years in exceptional circumstances.
Once a developer is selected, the society must execute the development agreement within three months. Registered Permanent Alternative Accommodation Agreements must also be executed within the prescribed timeline before residents are shifted.
The rules require developers to specify key terms, including project completion timelines, bank guarantees, alternative accommodation arrangements, carpet area and dispute-resolution mechanisms.
Greater Protection for Society Members
The new guidelines require redevelopment-related records to be made available to members for inspection. They also strengthen safeguards concerning alternative accommodation, commercial occupants and the allocation of flats after redevelopment.
Violations, including actions that prejudice members’ interests, may attract action against responsible office-bearers and committee members under the Maharashtra Co-operative Societies Act, 1960.
The revised framework seeks to make redevelopment decisions more transparent, improve oversight of developers and establish clearer timelines for projects across Maharashtra.
Source: Hindustan Times
