Maharashtra overhauls redevelopment rules: Video recording, 2-year completion now mandatory

The Maharashtra government has recently restructured the redevelopment process for cooperative housing societies, introducing stricter rules to ensure greater transparency and accountability. This change was implemented on September 30, superseding previous guidelines issued in July 2019.

Under the new framework, only the elected managing committee of a society can decide on its redevelopment plans. To initiate a Special General Body Meeting, at least one-fifth of the residents can submit an application.

A preliminary decision for redevelopment requires approval from a majority of 51 percent of the total members who can physically attend the meeting. The society must also obtain video recordings during key meetings as well as submit the minutes, written consent of members, developer's consent, and attendance sheet to the Registrar within 14 days.

The involvement of architects and Project Management Consultants (PMCs) has been heightened, with at least three of these professionals needing to submit quotations. One of these PMCs will be selected by the Special General Body Meeting to prepare a project report within two months.

The tendering process is also modified under the new rules. If fewer than three bids are received, the society will have to provide a 15-day and then a one-week extension before proceeding with the available bids. The list of bids must be displayed on the society's notice board and reviewed at a Special General Body Meeting.

After the selection of a developer, members can demand a secret ballot. The redevelopment work must be completed within two years from the first/plinth erection certificate date, with an optional extension of up to three years under exceptional circumstances. The developer is required to provide alternative accommodation or mutually agreed rent during the construction period.

The government has also emphasized that members will not be forced to vacate their premises merely because a developer has been selected. Legal approvals, registration of the Permanent Alternative Accommodation Agreement, and subsequent allocation of flats will need to be carried out through a Special General Body Meeting, with a lottery conducted by the developer if necessary.