Maharashtra Tightens Housing Society Redevelopment Rules; Registrar’s Officer Presence Made Mandatory For Developer Selection | AI
Mumbai: The fate of redevelopment projects undertaken by cooperative housing societies will now come under closer scrutiny of the cooperative department, with the Registrar of Cooperative Societies’ authorised officer being made a mandatory presence during the process of selecting a developer. Special General Body Meeting Required For Developer AppointmentThe Maharashtra Government, through a Government Resolution (GR) issued on September 30, has revised the procedure governing redevelopment of cooperative housing societies. The new framework seeks to bring greater transparency and accountability into the process, particularly at the stage of appointing a developer.Under the revised procedure, once a society prepares the project report and receives bids from developers, a Special General Body Meeting (SGM) has to be convened to select the developer. The proposal for this meeting, along with the meeting notice, list of members, project report, tenders and comparative statement of bids, has to be submitted to the Registrar.
51% Membership Approval Made Mandatory
The Registrar’s authorised officer will be required to remain present at the SGM convened for developer selection. The officer will oversee the proceedings and ensure that the prescribed procedure is followed. The Registrar is required to take a decision on the proposal within 14 days of receiving the relevant documents.Ramesh Prabhu, Chairman of the Maharashtra Societies Welfare Association, said the High Court, in its order, had clearly observed that the earlier government resolutions were merely directives and not mandatory. Though the presence of the Registrar’s representative was prescribed, there were no consequences for societies that failed to call the officer. “However, the new GR issued after nearly 10 years makes compliance mandatory and provides for consequences in case of violations. At the same time, vesting such powers with the Registrar could also increase the litigation burden on the Registrar’s office,” he said.Video Recording Of Meetings Made CompulsoryThe GR meanwhile stipulates that the developer can be selected only with the approval of at least 51% of the total membership of the society. The decision can be taken through a show of hands, while secret ballot will have to be conducted if at least one-fifth of the members demand it.The new rules also seek to prevent decisions being taken on the basis of only those members who happen to attend a meeting. The GR specifies that the required 51% support has to be calculated against the society’s total membership, while the views of absent members cannot be treated as votes for or against the proposal.High Court Observations Prompt Policy ChangeThe proceedings of the developer-selection meeting are also required to be video recorded. After the meeting, the society has to submit the minutes, video recording and other prescribed documents to the Registrar within 14 days. The Registrar will then record the appointment of the developer and communicate it to the society and the concerned local authority.The government has also made documents related to redevelopment available for inspection by members. Notices, minutes, video recordings, project reports prepared by the architect or project management consultant (PMC), tender documents, comparative statements and the draft development agreement have to be made available to members free of cost for inspection. Copies can be obtained on payment of the prescribed fee.The revised framework also lays down timelines for subsequent stages. The development agreement is to be executed within three months of the developer’s appointment, while the redevelopment project is expected to be completed within two years, extendable to three years in exceptional circumstances.The GR states that the revised provisions are aimed at ensuring transparency in the appointment of architects/PMCs, preparation of project reports, tendering, developer selection and execution of development agreements. It also provides for action in cases involving violations, collusion, fraud, misrepresentation or other adverse acts under the relevant provisions of the Maharashtra Cooperative Societies Act. The revised provisions apply to redevelopment of cooperative housing societies, including different forms of redevelopment covered under the government’s framework, and supersede the earlier 2019 procedure and related circulars specified in the order.
The government has made it clear that the revised procedure is not merely advisory and has to be followed during the redevelopment process. Any violation of the prescribed procedure, including cases involving collusion, fraud, misrepresentation or other adverse acts, can invite action under Section 79A(3) and Section 78A of the Maharashtra Cooperative Societies Act, 1960. The authorised officer from registrar office has power to remove the committee members from power and form a new committee. The GR was issued following several complaints regarding cooperative housing society redevelopment received it reads which says that unilateral decisions by managing committees, lack of transparency in tendering and arbitrary developer appointments, besides members not being provided redevelopment-related documents and updates. Therefore, now Societies and their office-bearers will have to adhere to the prescribed procedure at each stage of redevelopment. To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/