Redevelopment Rules For Societies

Redevelopment Of Housing Societies Is Usually Fraught With Acrimony And Complaints Of High-Handedness And corruption Against The Managing Committee.


Hence With A View To Ensure Transparency In Societies Seeking To Undertake Redevelopment Projects, The State Co-operative Department Has issued Guidelines For Societies To Follow Under Section79(A) Of The Maharashtra Co-operative Act,1960.


The Guidelines Were Issued After A Committee Comprising The Co-operatives Commissioner & CIDCO Chairman Was Formed To Study A Slew Of complaints By Members Of Housing Societies Undertaking Redevelopment.


According To An Important Feature In The Guidelines, A Redevelopment Scheme Can Be Approved By The General Body only If Three-Fourths Of The Society Members Are Present In The Meeting.


Also The Special General Body Has To Approve The Bid Of The Successful Bidder In A Meeting Attended By The Registrar. The Entire Proceedings Has To Be Video-Recorded.


Once The Agreement Is Accepted In Terms Of Area & Corpus Fund, It Cannot Be Revised. On The Other Side,Rules Have Been Drawn Up To Make The Developer Accountable.


 The Successful Bidder Has To Give A Bank Guarantee Equivalent To 20% Of The total Project Cost, And proof That He Will Not Abandon The Project Midway.


The Development Agreement,Too, Must Be Signed On Carpet-Area Basis. 


Most Importantly, If For Some Reasons, The Successful Developer Is Unable To Complete The project, He Cannot Sell His Agreement To Another Developer.


Shri.Nilesh K Vice President Of LandguruZ, Who Guides Housing Societies In Redevelopment Issues, Said These Guidelines Will Bring Transparency And Give A Boost To Development Projects.
"The Most Important Guideline Is That The Development Agreement Signed With A Particular Builder Cannot Be Transferred To Someone Else. Such Transfers Create A Lot of Confusion and Raise Allegations of Corruption," He Said.