Note on Redevelopment

Meaning of Redevelopment:-

Redevelopment means demolition of old structure and replacing with new structure with new
dimension and space.

Redevelopment guidelines:-

 Old Directive Guidelines dated 3rd January 2009 under Section 79(A) of Maharashtra Co-
operative Societies Act 1960 to all the Co-operative Housing Societies in the State of
Maharashtra and the same is superseded by Revised Guidelines for Redevelopment of
Cooperative Society buildings in Maharashtra dated 4 th July, 2019 issued u/s 79A of the MCS
Act, 1960.

Step by Step Redevelopment Process:-

The Office Bearers of the Society are requested to follow the following steps for redeveloping their
old building:

1. Starting Redevelopment: - The society in which redevelopment work of the buildings is

required to be undertaken, an application of requisition to hold a Special General Meeting to
consider and discuss the redevelopment project and suggestions on the same, is to be
submitted to the secretary of the managing committee which is properly elected as per the
provisions of the society’s bye–laws and also constituted as per the provisions of the MCS
Act 1960. The requisition application is to be signed by not less than 1/5th of the total
members of the society.

2. SGM for Redevelopment: - On receipt of requisition for calling the meeting, the managing
committee of the society, within 8 days of the receipt of the application, should consider the
same and within a period of 2 month, the Secretary will call the Special General Meeting of
the members of the society and the agenda of this meeting should be circulated to each
member of the society 14 days in advance and the acknowledgement will be collected from
every member and maintained in the records of the society.

3. Before convening the said Meeting, the managing committee of the society, shall invite
quotations from minimum 3 Architects registered with the Council of Architects under the
Architects Act, 1972/ Project Management Consultant (PMCs) on the panel of Government/
Local Authority for the preparation of Project Report regarding redevelopment work of the
building.

4. For the sake of transparency, the Society shall create a website on the internet and all sorts
of information concerned with the redevelopment such as Notices, Minutes and Project
Management Consultant Report shall be placed on the website and the aforesaid
information shall be accessible to the members of the society. The Registrar shall be also
informed about the said website. Also, the above information shall be displayed on the
Notice Board of the society.
5. Following topic-wise business shall be conducted in the said Special General Meeting:-

a. To take a preliminary decision after taking into consideration the requisitions and
suggestions received from the members regarding redevelopment of the society
building;

b. To appoint an expert and experienced Architect/PMC for the redevelopment work of the
building;

c. To present a proposed plan pertaining to the redevelopment of the said building.

6. The members of the society can submit in writing their schemes/suggestions and
recommendations regarding the redevelopment of the society as well as the names of the
experienced Architects/PMC within their knowledge to the committee 8 days prior to the
date of the meeting.

7. Decision to be taken in the SGM:-

The quorum for the SGM shall be 2/3 rd of the total number of members of the Society. If the
quorum is not attained, the SGM shall be adjourned for 7 days and the meeting shall be re-
convened within the next 1 month.

(If there is no quorum in the adjourned meeting also, then the Meeting shall be dissolved
considering that the members have no interest in the redevelopment of the society. In such
a situation, the redevelopment subject cannot be brought before any SGM for its approval
for further 3 months).

In the Meeting, 51% of the members present should agree for redevelopment and then a
resolution should be passed for going ahead for redevelopment of the building.

After the decision of the redevelopment of the Society is passed by the majority of not less
than 51% of the total members, it would be necessary to obtain the written consent letters
of the members who exercise their vote in favour of the resolution and to enable the
Managing Committee to proceed with the redevelopment.

8. To circulate Minutes of Meeting of all members: -

The Secretary of the Society should prepare the minutes of the SGM and circulate a copy
thereof to all the members within 7 days and acknowledgements should be maintained in
the record and a copy thereof to be presented to the Registrar of the Society.

9. Appointment of Consultants-

The secretary of the society shall issue an appointment letter to the Architect/PMC selected
at the SGM within 30 days from the date of meeting and the society shall enter into an
agreement with the Architect/PMC on the terms and conditions as approved in the SGM.

10. Works to done by the Architect/PMC:-

 a. To carry out survey of the land and building of the society;
b. To obtain information regarding the conveyance of the society land;
c. To obtain information regarding FSI and TDR that would be available as per the building
and land of the society;
d. To prepare the project report by taking into consideration such factors as the residential
area, commercial area, open spaces, garden, parking, construction specifications etc.;
e. The Architect/PMC should prepare the Project Report within two months from the date
of his appointment and submit the same to the Managing Committee of the society.

11. Action to be taken on the receipt of the Project Report:-

The secretary of the Society should call for a meeting of the Managing Committee on the
receipt of Project Report. In this meeting, the Architect/PMC would be invited, and a
sanction would be sought for the Project Report considering suggestions made by the
members on the draft Project Report.

The Project Report with necessary modifications, if required would be approved by the
majority vote. Thereafter, the tender document would be prepared to get the competitive
bids from builders/developers and different agencies.

12. To declare the list of received Tenders-

On the last day for receipt of tenders, the secretary of society shall prepare the list of
tenders so received and publish the same on the notice board of the society. The secretary
of the society shall convene a meeting of the managing committee of the society within 15
days from the last date for the receipt of the tenders. The consultants appointed by the
society should study the tender offers in detail and prepare comparative charts and give
their recommendations to the managing committee.

Thereupon, the managing committee should make an application accompanied by the list of
members to the Registrar within 7 days for the appointment of an authorised officer, so that
the SGM can be held in the presence of representative from the office of Registrar of
Cooperative Societies. The Registrar shall take a decision thereon and appoint an authorised
officer.

13. SGM for selection of Developer / Builder-

The secretary of the society shall convene a SGM by taking the prior permission of the
authorised officer within one month of his appointment and send the agenda of SGM to all
the members 14 days prior to the SGM. Thereupon, the members of the society in the SGM
and after discussing the merits and demerits of all the offers, should select one developer /
builder for carrying out the redevelopment of the Society. The authorised officer shall make
the arrangements for the video recording of the SGM at the expense of the society.

The quorum for the SGM shall be 2/3 rd of the total number of members of the Society. If the
quorum is not attained, the SGM shall be adjourned for 7 days and the meeting shall be re-
convened within the next 1 month.
 (If there is no quorum in the adjourned meeting also, then the Meeting shall be dissolved
considering that the members have no interest in the Redevelopment of the Society. In such
a situation, the Redevelopment subject cannot be brought before any SGM for its approval
for further 3 months).

14. Proceedings at the SGM regarding selection of the Developer:

a. To give comparative information regarding the tenders shortlisted for presentation;

b. To select one developer for the redevelopment of building on stipulated terms and
conditions and finalization of tender;
c. To obtain consent of the developer who is selected;

It shall be necessary to obtain written approval of the members present for the appointment
of developer which shall not be less then minimum 51% of the total membership strength of
the society.

15. Re-development Agreement-

An agreement should be executed with the developer/builder, within 3 months, subject to

the terms and conditions as approved by the managing committee of the society.

Depending upon the size of the redevelopment, the period for the completion of society
redevelopment shall not exceed 2 years from the date of issue of first /plinth erection
certificate and in exceptional circumstances shall not exceed 3 years.

The developer shall give a bank guarantee to the society to the extent of 20% of the total
value of the redevelopment project.

During, the period of redevelopment, the developer shall furnish alternative accommodation
to the members as far as possible in the same area or shall make arrangements to pay
monthly rent and deposit as agreeable to the members of the society.

The development rights given to the developer are non-transferable.

General:-

What is the list of important Documents required for starting Redevelopment?

 Society Registration Certificate;

 7/12 Extract;
 Form no. 6 from Revenue Office;
 Conveyance Deed / Lease Deed / Sale Deed;
 Search Report and Title Certificate;
 Index II;
 N. A. Order;
 Development Agreement;
 City Survey Plan;
 Approved Building Plan;
 Copy of I.O.D;
 Commencement Certificate;
 Occupation Certificate;
  Completion Certificate;
 Agreement for Sale;
 Stamp Duty paid proof;
 Registration Charges paid proof;
 Appointment Letter.

What are the Documents needed to be prepared for Redevelopment?

 Project report;
 Suggestions from members;
 Public Notice for inviting the Tender;
 Minutes of various Meetings;
 Correspondence with different Authorities;
 Obtaining required permission from Deputy Registrar, BMC, ULC Department, Na
Department etc.;
 Tender Form;
 Summary of Tenders received;
 Approval of Tenders in the General Body meetings and preparation of Draft and Final
Minutes;
 Appointment letters to Advocate, Structural Engineers, Architect, Project Management
Consultant etc.

What are the various Documents and Agreements to be prepared in the process of
Redevelopment?

 Redevelopment Agreement;
 Indemnity Bond by the Developer;
 Format of Bank Guarantee from the Builder;
 Power of Authority from the Society to the Developer;
 Agreement for alternate accommodation;
 Consent Letters from the members to the Society;
 Consent Letters from the members of the Society to Builder / Developer / BMC;
 Memorandum of Understanding (MOU) between the Society and Builder / Developer;
 Appointment Letter from the Society to the Builder / Developer;
 Possession Letter from the Builder to the Members;

What are the requirements from the Developer?

 Memorandum of Association;
 Copy of Registration Certificate;
 Name and address of the Directors along with their PAN;
 Copy of PAN of the Company;
 Income Tax Return filed for the last 3 years of the Directors of the Company;
 GST Registration no;
 Copy of Balance Sheet and P/L A/c to understand the financial strength of the Company