New Circular for Redevelopment in Maharashtra

Here is a comprehensive and structured summary of the provided text regarding the revised guidelines for the redevelopment of cooperative housing societies in Maharashtra:

  • Background and Purpose
    • Issued by the Cooperation Department of the Government of Maharashtra under Section 79A of the Maharashtra Co-operative Societies Act, 1960.
    • Aims to bring transparency, consistency, member participation, and protect members’ interests in redevelopment projects, superseding all previous orders and circulars from July 4, 2019, onwards.
    • Addresses widespread complaints regarding unilateral committee decisions, lack of transparency in tenders, arbitrary developer appointments, and withholding of information from members.
  • Initial Redevelopment Decision & Special General Meeting (SGM)
    • Applicable to developer-led redevelopment, self-redevelopment, group redevelopment, etc. Only lawfully elected managing committees can initiate the process (not authorized officers or administrators).
    • Upon receiving an application from at least 1/5th of the members, the secretary must convene an SGM within 2 months (with 14 days’ prior notice).
    • Quorum & Voting: Requires a 2/3rd quorum of total members. The primary decision to redevelop must be approved by a majority of at least 51% of the total members (virtual attendance via video conferencing is permitted, but physical presence of at least 51% of total members is mandatory).
  • Appointment of Project Management Consultant (PMC) / Architect
    • The committee obtains quotations from at least 3 registered architects/PMCs from government/local authority panels, and one is selected in the SGM.
    • Appointed professionals must survey the land/building, check conveyance, evaluate FSI/TDR, and submit a realistic project report within 2 months.
  • Tender Process & Developer Selection
    • Draft tenders (keeping either carpet area or corpus fund constant for competition) must be approved in an SGM before publishing in leading Marathi and English newspapers.
    • Minimum of 3 competitive tenders are required; timeline extensions are provided if fewer than 3 are received.
    • Developer selection must take place in an SGM conducted in the mandatory presence of an authorized representative/officer appointed by the Registrar (applied for within 14 days of proposal finalization).
    • Selection requires the approval of at least 51% of total members present (physically or via VC). Voting can be done by a show of hands or secret ballot if demanded by 1/4th of the members.
  • Agreements and Project Execution
    • A formal agreement with the developer must be executed within 3 months, ensuring project completion within 2 years (or maximum 3 years in exceptional cases) from the plinth certificate.
    • Mandates registered Permanent Alternative Accommodation Agreements (PAAA) under the Registration Act, 1908, along with transit rent/accommodation provisions and bank guarantees.
    • Committee members, office bearers, or their relatives are strictly prohibited from being the developer or related to the developer.
  • Group Redevelopment for Housing Federations
    • Allows group redevelopment for societies under a housing federation, provided a 2/3rd quorum and 51% approval from constituent societies/members are met.
  • Penalties for Non-Compliance
    • Violation of these orders or fraudulent actions against members will render responsible office-bearers/committee members liable for action under Section 79A(3) / 78A of the Maharashtra Co-operative Societies Act, 1960.

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