4/18/2019 Re-development of Co-op.

Housing Societies-Guidelines – Maharashtra Housing and Building Laws

Re-development of Co-op. Housing

Societies-Guidelines

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Directions to be given to all Co-operative Housing Societies in Maharashtra State u/s. 79(A) of the
Maharashtra Co-operative Societies Act, 1960.

Regarding Re-development of the buildings of Co-operative Housing Societies.

Government of Maharashtra

G.R.No. Sa.Gru.Yo.2007/Pra.kra. 554/14-Sa

Department of Co-operation, Marketing and Textile.

Dated:- 3rd January, 2009

                      Whereas, Re-development Schemes of the buildings belonging to Co-operative Housing

Societies are extensively being undertaken in the State of Maharashtra. Several complaints have
been received from the members regarding the management of co-operative societies which are
re-development. By and large, the nature of complaints received in the matter of redevelopment
of co-operative Housing societies is as follows:-

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         1] Not taking the members in con dence in the re-development process.

            2] Non-transparency in the Tendering Process.

3] Arbitrary appointment of contractors.

           4] Conducting proceedings in violation of the co-operative law, Rules or Bye-laws.

         5] Lack of co-ordination in the work to be done by the Architect and Project Advisor.

            6] Non-planning of the Re-development Project Report.

7] Not adopting fair procedure for nalising the tenders.

8] Non-parity in the Agreements to be executed with the Developers.

            Whereas, there was no concrete policy in the matter of complaints concerning all the above
issues, Commissioner of co-operation and the Registrar of co-operative societies, Maharashtra
State, Pune constituted a Study Group under the Chairpersonship of the Joint Registrar, co-
operative societies, CIDCO to go into the complaints received at various levels and to consult all
sections actually working in the concerned eld. The said Study Group consulted all the sections
of the co-operative Housing Sector and expressed an opinion about the advisability of drawing
Guidelines for the redevelopment of buildings belonging to co-operative housing societies.

            In view thereof, under section 79(A) of the Maharashtra Co-operative Societies Act, 1960,
the Government hereby issues the following directions:-

                      The following directions shall be treated as the directions for the re-development of
buildings belonging to co-operative housing societies:-

             1] Demand/Requisition for convening the Special General Meeting for the redevelopment of
society building:-

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             It will be essential that not less than minimum 1/4th members of the co-operative housing
society, where buildings are to be re-developed, should submit an application addressed to the
Secretary of the Managing Committee of the society duly elected and constituted as per the Bye-
laws and law, for convening the Special General Meeting of the society for deciding the policy in
the matter of re-development of buildings belonging to the society, together with their schemes
and suggestions about re-development of the buildings.

            2] Convening of Special General Meeting:-

                      As per Direction No. 1 above, the Managing Committee meeting shall take note of the
application within eight days of the receipt of application and the Secretary of the society shall
convene a General Meeting of all the members of society within a month. The agenda of the
meeting should be circulated to each member of the society fourteen days in advance and the
acknowledgment thereof should be kept in the of ce of society.

                      Before convening such meeting, committee of the society shall obtain a list of the
Architects/Project Management Consultants on the panels of Government/Local Authority and
shall invite quotations from minimum 5 experienced experts for the preparation of Project
Report/Project concerning the re-development of building and of these one expert shall be
appointed at the Special General Meeting.

         Following topic-wise business shall be transacted in the Special General Meeting.

1. To take a preliminary decision on the re-development of society building after taking into
consideration the requisition/demand of members as well as the suggestions received.

2. To appoint an experienced Architect/Project Management Consultant with suf cient

expertise from the panel of Government/Local Authority in the matter of re-development
work of the building and to x the terms/conditions and the aspects of their work.

3. To present an outline of the programme of building re-development.

            3] Accepting written suggestions of the members regarding building re-development:-

                      Members of the society can present their realistic schemes, suggestions and
recommendations regarding the re-development of society building as well as the names of
experienced Architects/project Management Consultants within their knowledge to the

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committee of society in writing, eight days prior to the date of meeting. However, they must
present the letters indicating willingness of such Architects/Project Management Consultants to
undertake the work of re-development.

            4] Decision to be taken in the Special General Meeting:-

                      Special General Meeting convened for the re-development of building belonging to Co-
operative Housing Society shall have the quorum of 3/4th of the total strength of members. For
non-ful lment of quorum, the meeting shall be adjourned for the next eight days and if the said
meeting too lacks the quorum, it shall be assumed that the members are not interested in the re-
development of society building and the meeting be accordingly called off.

            On the ful lment of quorum, all the suggestions, recommendations and objections put up by
the members regarding the re-development of society shall be taken into consideration and the
opinions expressed by all the members in this regard shall be recorded in the Minutes of the
meeting with their individual names. Thereafter, a preliminary decision as to whether the building
of society should be re-developed  or not, shall be sanctioned by a majority vote of more than
3/4th members present. After the preliminary resolution regarding re-development is passed,
following business shall be transacted in the meeting:-

              (a) To appoint an experienced Architect/Project Management Consultant having suf cient

expertise from the Panel constituted by the Government/Local Authority for facilitating the re-
development of building and xing the aspects of their work and terms and conditions thereof.

                        (b) To present an outline of the Programme concerning the re-development of building.

            5] Circulation of Minutes of meeting to all members:-

            Secretary of the society shall prepare minutes of the Special General Meeting and circulate a
copy thereof to all members within ten days and keep an acknowledgment thereof in the of ce.
Moreover, a copy shall be sent to the of ce of Registrar.

            6] Appointment Letter to Architect/Project Management Consultant:-

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                      Secretary of the society shall give the letter of appointment to the concerned
Architect/Project Management Consultant appointed at the Special General Meeting within 15
days of the date of meeting and thereafter the committee shall enter into an agreement with the
Architect/Project Management Consultant as per the terms and conditions sanctioned in the
General Meeting.

            7] Work to be done by the Architect/Project Management Consultant at the initial stage:-

                        (a) To carry out survey of the land and building of the society.

                        (b) To obtain information regarding conveyance of the society land.

                        (c) To obtain information regarding the availability on the land of FSI and TDR, after
taking into consideration the relevant Regulations of MHADA/SRA/Municipal Corporation for the
time being in force, in terms of the prevailing government policy and the ownership of land.

                        (d) To prepare a realistic Project Report after taking into consideration the residential
area for the members, commercial area, open spaces, garden, parking, speci cations regarding
construction and such other factors in the light of the suggestions and recommendations
regarding the re-development work, made by the members of the society.

                        (e) To prepare a Project Report and present the same to the committee of the society
within a period of two months of the date when the Architect/Project Management Consultant
was so appointed.               

            8] Action to be taken after the receipt of Re-development Project Report:-

                        (a) Secretary of the society, after receiving the Re-development Project Report as
aforesaid, shall convene a Joint Meeting of the committee members and the Architect/Project
Management Consultant for securing a majority sanction for the Project Report in the light of the
suggestions made by the members. He shall put up a notice thereof on the notice board of the
society, indicating such details as time and venue of the meeting. The said Notice will indicate that
a copy of the Project Report so received would be available for the inspection of the members in
the of ce of the society and would further apprise each member that they could present their

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suggestions in that regard, eight days prior to the committee meeting. An acknowledgment of such
notice would be kept in the of ce record.

                        (b) Secretary of the society shall forward for consideration, the suggestions received
from the members to the Architect/Project Management Consultant, 7 days before the Joint
Meeting as described above.

                        (c) In the said Joint Meeting, all such factors as the suggestions/recommendations made
by the members and the opinion of the Architect/Project Management Consultant would be
elaborately discussed and the Project Report with the necessary changes therein, would be
sanctioned with a majority vote. Thereafter a draft tender document would be prepared and the
date, time and venue of the next joint meeting would be xed for nalizing the draft tender
document after discussion/consultation in that regard. While preparing the draft tender
document, the Architect/Project Management Consultant shall keep either the carpet area or
corpus fund constant (non- uctuating) and x other technical aspects, so that competitive bids
can be received from the reputed and experienced developers possessing expertise. Moreover, the
members of the society may also inform the reputed and experienced developers known to them
in this regard.

            9] Declaration of the List of received Tenders:-

                        (a) On the last day xed for the receipt of tenders, Secretary of the society shall prepare
a list of the tenders received and put up the same on the notice board of the society.

                        (b) Secretary of the society shall convene a Special General Meeting of the Managing
Committee within 15 days of the last date for the receipt of tenders. Authorised representatives
of the bidders and interested members of the society can attend this meeting as spectators. In this
meeting, the received tenders will be veri ed and opened in the presence of all. The
Architect/Project Management Consultant shall verify all the tenders and prepare a comparative
chart. He shall verify such factors as the merit, reputation, experience and competitive rates of the
applying bidders and shall shortlist minimum 5 tenders or where less than 5 tenders are received,
as many number of tenders for the consideration of Special General Meeting and thereafter the
concerned bidders shall be informed forthwith.

            10] Selection of the Developer:-

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                        (a) Appointment of the Authorised of cer by the of ce of Registrar for the General
Meeting.— An application accompanied by the list of members should be made within eight days
to the Registrar for making an appointment of the authorised of cer to represent the of ce of the
Registrar of co-operative societies at the Special General Meeting of the society, at which meeting
one of the shortlisted bidding developers is to be selected with the help of the consultant on the
basis of their experience, merit, nancial capability, technical competence, competitive rates and
such other criteria in the presence of such representative. The Registrar will take a decision on
such application and appoint an Authorised Of cer.

                (b) Convening of the Special General Meeting for nalizing the tenders.— Secretary of the
society shall, with the prior permission of the Authorised Of cer, decide the time and venue and
convene a Special General Meeting for the appointment of a developer within one month after the
Authorise Of cer is so appointed. He shall despatch to all members, the Agenda of the meeting 14
days prior to such meeting, by hand delivery and Acknowledgment Due Post and keep the
acknowledgements thereof in the society record. Moreover, the representative of the Registrar’s
of ce shall arrange to keep their Authorised Of cer present at the meeting where the tenders are
to be presented. Furthermore, he shall make arrangements the video recording of the meeting at
the expense of the society. At this meeting, except the bona de members, no one else can remain
present. Hence, it will be incumbent upon the members to attend the meeting with Identity Card.
Before the re-development proposal is submitted for the sanction of the concerned Authority, it
will be incumbent that the selection of Developer and other proceedings should be conducted in
the presence of the Of cer authorised by the Registrar.

            (c) Non-ful lment of Quorum at the Special General Meeting.— The Special General Meeting
shall have the quorum of 3/4th of the total number of members. If the quorum is not ful lled, the
meeting shall be adjourned for the next eight days and if the said meeting too does not have the
quorum, it shall be assumed that the members of the society are not interested in the re-
development of the building and the meeting shall be accordingly called off; Thereafter, for the
next one year the said topic shall not be brought again for the sanction for the Special General
Meeting.

            (d) Proceedings at the Special General Meeting regarding the selection of the Developer.—
The Authorised Representative from the of ce of the Registrar shall attend this meeting and
observe the proceedings. Moreover, after the requisite representatives and the authorised of cer

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attend the meeting at the given time and on the ful lment of quorum as aforesaid, the business of
the meeting shall be transacted as follows:-

     I To give comparative information about the tenders shortlisted for presentation (regarding the
work of re-development).

   II To present the bidders serially (Presentation regarding tenders).

         III To select one Developer for carrying out re-development of the building, subject to the
stipulated terms and conditions and nalisation of the tender.

     IV To obtain consent of the selected developer.

      V To give information about the further developments.

            It shall be incumbent to obtain the majority vote in writing of minimum 3/4th members
present at the meeting for sanctioning the appointment of the Developer. If the shortlisted
developers or their representatives do not attend the meeting, their consent for the project shall
be presumed and further proceedings shall be conducted.

            11] Agreement to be executed with the Developer:-

            The Managing Committee of the society shall, subject to the terms & conditions sanctioned
by the General Meeting and pursuant to the guidance of the Architect/Project Management
Consultant, execute an agreement with the Developer within one month.

                      Besides, the points suggested by the Architect/P.M.C appointed by the society, the
Agreement shall include the following points as well:-

1.                       The period for the completion of re-development project of the society shall not
exceed two years and in the exceptional circumstances it shall not exceed 3 years.
2. The Developer shall offer the society a Bank Guarantee to the extent of 20% of the value of
the Re-development Project.
3. During the period of re-development, the Developer as far as possible, shall provide
alternative accommodation to the members in the same area pending the completion of the

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project or shall arrange to pay such monthly rent and deposit as agreed to by the members or
shall make available such Transit Camps.
4. The said Agreement shall be registered under the Registration Act, 1908.

5. New members shall be admitted to the society only on the completion of the re-development
project with the sanction of the General Meeting of the society.
6. The Agreement should specify in clear terms the carpet area to be offered.
7. The development right assigned to the Developer shall be non-transferrable.

8. The members holding the premises shall vacate the premises only after all the requisite legal
sanctions are accorded for the re-development of building.

9.             The rights of the persons who are in possession of the ats, shall remain intact.
10. The Agreement executed with the contractor, Architect and the society must contain a
provision for the resolution of any dispute that may arise during the course of re-development
work under section 91 of the Act.
11.                       On the grant of Occupation Certi cate, the ats in the re-development building
shall be allotted as far as possible according to the present situation of oors and if the “Draw
of lots” becomes necessary for the disbursement of ats, the Developer should make
arrangements for the Draw of lots on the completion of building. At such time, the ats should
be disbursed by the Draw of lots in the presence of the Registrar’s representative and a video
recording of the proceedings should be made.
12.                       No committee member or an of ce bearer shall either be a Developer or related to
him.
13. The Building Plans sanctioned by the Municipal Corporation/Competent Authority must be
presented again for the information of the General Meeting and if a member desires to obtain
a copy of the sanctioned documents, he should tender a written application to the society and
the committee shall be duty bound to furnish such information by charging reasonable fees
therefor.

                 By the order and in the name of the Governor of Maharashtra.

                                                                                Sd/-

(Dr. Sudhirkumar Goyal)                                  Principal Secretary (Co-operation and Marketing)

Copy:-

1] Commissioner of Co-operation and Registrar, Co-operative Societies, Maharashtra State, Pune.

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2] Divisional Joint-Registrar, Co-operative Societies (All).

3] District Deputy Registrar, Co-operative Societies (All).

4] Selection File (14-Sa).

     *******

[© Translated by Adv. Prakash Manohar Chalke]

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