Nagpur – Only 51% members’ nod must for redevelopment of co-op housing societies

Nagpur : In a bid to encourage redevelopment and to ensure common points in agreement with re-developers, State Government has revised the guidelines for redevelopment of co-operative housing societies. Accordingly, the requirement of consent of 70 per cent of the members of such a society has been scaled down to consent of only 51 per cent of members. As per the communique bearing digital signature of Kamlakar Badgujar, Desk Officer, Co-operation, Marketing, and Textiles Department, the guidelines have been issued as the Co-operation Department has been receiving several complaints relating to redevelopment of co-operative housing societies across Maharashtra.

The common complaints/allegations include lack of transparency in tender process, arbitrariness in appointment of contractors, not taking into confidence all the members of a society while going for redevelopment of a housing project, violations of laws and rules, no streamlining of works of architect and project consultant, improper planning of redevelopment project report, lack of proper method while finalising tender for redevelopment, and variations in agreement signed with developers. As per the existing guidelines, it was necessary to obtain consent of 70 per cent of the members of a co-operative housing society opting for redevelopment.

Now, the fresh guidelines have brought down the requirement to consent of 51 per cent of the members. The coram of special general body meeting called to discuss redevelopment project should not be less than two-third of the total number of members of the society concerned. The opinion or consent of the members not present in the meeting will not be considered either orally or in writing, once the consent of 51 per cent of the members is obtained.

The society is required to provide minutes of such a meeting to all the members of the society concerned, and submit a copy of the same to the Registrar Office concerned. Also, the society will have to secure consent of 51 per cent willing members, in writing. Later on, the reports of architect, project management consultant shall be obtained and then tenders will be invited. The list of bids received shall be displayed on notice board of the society concerned.

The bids will be opened in a meeting and representative of the Registrar Office (Co-operative Societies) will be invited for such special general body meeting of the society. After finalising the tender as per the laid-down procedure, the society will have to sign an agreement with the developer/contractor concerned within three months. The fresh guidelines spell out points that should be there in the agreement. As per the guidelines, after laying foundation of redevelopment, the project will have to be completed in two years. In ‘exceptional’ case, the project will have to be completed in three years maximum. The developer will have to give 20 per cent of the total project cost as bank guarantee to the co-operative housing society concerned.

The developer will have to make available alternative accomodation to the members of the society or pay monthly rent and deposit or accomodate them in transit camps. The development agreement with the society and permanent alternative accomodation agreement with the individual members will have to be registered as per the provisions of Registration Act, 1908. Till such an agreement is signed, the members will not vacate their occupation in the existing structure.

The new members will be inducted into the society once the project is completed and after securing approval of the general body of the society. More importantly, the agreement shall specifically and clearly include carpet area applicable as per the Real Estate (Regulation and Development) Act, 2016. One more important condition in the fresh guidelines is that committee member or office-bearer of the society should not be a developer himself or developer’s relative. Once the redevelopment project is ready, and Occupation Certificate is obtained from the municipal corporation/local body concerned, the flats will be allotted on the same floor where the flat-owners were residing previously.

If required, lottery system should be implemented for distribution of flats in presence of representative of Registrar (Co-operative Societies) concerned. The process of flat distribution should be video graphed, state the fresh guidelines. It provides relief to developers. For, they will not have to wait till consent of 70% of the members. Now, they will have to secure consent of only 51% of the members. At the same time, with more members (49 per cent) excluded from the process, there may be increase in litigations.

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