Mumbai Grahak Panchayat Opposes 51% Physical Attendance Rule For Developer Selection In Society Redevelopment
Mumbai Grahak Panchayat (MGP) has strongly objected and sent a representation to Maharashtra Government urging deletion of the condition mandating physical presence of 51% of members for selection of a developer. MGP says the condition appears to distinguish unfairly between physical and online participants, and could be open to legal challenges. Physical Attendance Clause Questioned The…
The Mumbai Grahak Panchayat (MGP) has raised concerns with the Maharashtra Government over a regulation requiring a 51% physical attendance of society members for selecting a developer in cooperative society building redevelopments. The MGP argues that such a provision unfairly discriminates between physical and online participants, potentially leading to legal challenges.
The government's recent resolution permits video conferencing for society members to satisfy the quorum for a Special General Meeting (SGM) required for redevelopment. However, the MGP contends that mandating 51% physical attendance for developer selection conflicts with rules allowing online participation and creates practical difficulties.
The MGP claims these requirements might prevent societies from proceeding with redevelopment, especially when members live elsewhere or have rented out their flats. In cases where three developers are being considered and none secure more than 51% of votes, the MGP suggests a second round of voting to select the top-ranked developer.
Furthermore, the MGP argues that if no developer receives a clear majority in the second round, the developer with the highest vote count should still be awarded the contract. The MGP's representative, Shirish Deshpande, Chairman of MGM, emphasizes that the compulsion for physical attendance is unsustainable under the law.
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