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Redevelopment : Procedure, Guidelines & Steps

In the State of Maharashtra, there are large numbers of projects under process for Re-development of the Building of the Co-op. Hsg. Societies. There have been numerous complaints from the members against the Management of the Co-op. Hsg. Societies for various steps managing committee has taken for the building re-development.

The main reasons we observed that the Managing Committee members do not have clarity on the step-by-step process of building re-development. However such complaints can be avoided if the Management of these societies follows some of the basic guidelines as mentioned below when they initiate the process of re-development;

Key steps for building re-development:

  1. The Society should consider Re-development only if the Society has Conveyance Deed in their favor. Without Conveyance, the Society should not pass any resolution for re-development but should only move towards major repairs & appoint consultant or PMC to get conveyance or Deemed Conveyance.
  1. Call a Special General Body meeting to discuss the redevelopment of the society building. 75% of the total member should tender their consent to the proposal. It is important to note that Managing Committee should be properly elected as per provisions of the society’s Bye-laws and also constituted as per the provisions of the MCS Act 1960.
  1. Set-up a “Redevelopment Committee” who would be responsible for all the process of redevelopment. Ensure that Secretary, Chairman & Treasurer should be part of such Redevelopment Committee.
  1. On receipt of the proposal of the redevelopment, the secretary should call the another General Body Meeting of the members of the society giving 14 clear day notice for which acknowledgment should be collected from every member and maintained in the records of the Society. Before holding the meeting the committee shall call quotations from minimum five Architects or Project Management Consultants who are impaneled with the Government or any local competent Authority. After considering all the quotations received, the Special General Meeting will select one of the Experts.
  1. The members of the society can submit their inputs, suggestions, recommendations and also names of known experienced and expert Architects/Project Management Consultants for the redevelopment project. However, this should be submitted to the Committee, in writing, 8 days before the date of the meeting.  Further approval letter from the referred Architects / Project Management Consultants shall also be submitted stating that they are interested to take up work of Redevelopment.
  1. The quorum for the SGM called to consider the subject of Redevelopment of the society’s building will be 3/4th of the total number of the members of the society. In case of no quorum, the meeting will be adjourned for 8 days and if there is no quorum attained for the adjourned meeting under such circumstances such adjourned meeting will be dissolved considering that the members have no interest in the Redevelopment of the society’s building/s.  On condition of attaining required quorum, the suggestions, objections, recommendations, and references placed by the members regarding Redevelopment of society’s building/s will be considered and noted in the minutes of the meeting along with the observations made by all the members.  Thereafter a majority of 3/4th of the members present at the meeting is required to pass a primary resolution regarding the decision for Redevelopment of the society building. After the approval of the Resolution for Redevelopment, the Meeting will consider the following business.

– To approve the Terms and Conditions along with the scope of the work to be carried out by the eligible    Architect / PMC.

– To submit the proposal for Building Redevelopment Project.

  1. The architect / PMC should prepare the project feasibility report considering the available F.S.I. and T.D.R. for the building and land considering Rules of the MHADA / S.R.A. / Municipal Corporations, as applicable from time to time, suggestions, references, recommendations made by the society members about the redevelopment and taking into account the residential area, commercial area, open spaces, Garden, Parking, the specification of construction etc.

The Project Report shall be prepared and submitted to the committee by the Architect / PMC within 2 months from the date of their appointment.

  1. After receipt of the Redevelopment Project Report and considering the suggestions presented by society members, the Hon. Secretary of the society will call a joint meeting of committee members and Architect / PMC to obtain approval from majority towards the submitted Project Report. A proper Notice mentioning the day, date, time, place etc. of the meeting will be displayed on the Notice Board of the society.  The Notice will also inform that the copy of the Project Report is available to the members for the inspection.  Also, the members will be informed that they can submit their suggestions, before 8 days of the Committee Meeting.  This Notice about member suggestions shall be given to every member and their acknowledgment which shall be kept in the records of the society.
  1. The Hon. Secretary shall send all the suggestions received from the members to the Architect / PMC for their consideration, 7 days before the Jt. Meeting.
  1. The said Jt. A meeting will consider the suggestions, recommendations received from members along with the opinion expressed by the Architect / PMC, and after detailed discussion on all the related matters and after incorporating the required corrections, the Project Report will be approved by the meeting. The provisional draft of the Tender will also be prepared and day, date and venue will be finalized for the next joint meeting for discussing and finalizing the draft of the Tender document. The Architect / PMC will prepare the draft Tender for inviting competitive offers, wherein one of the primary requirements (Unchangeable) carpet area or corpus fund will be decided and considering the other technical aspects tenders will be invited. This will help to receive competitive Tenders from well known, expert and experienced Developers.  The members of the society can forward this information to their choice of renowned and experienced Developers.
  1. The Hon. Secretary of the society will prepare a list of the Tenders received till the last day of receipt and publish it on the Notice Board of the society.
  1. Within 15 days of the last date of the receipt of the Tenders, the Hon. Secretary of the society will call the Special Meeting of the Managing Committee. The meeting will be attended by the official representatives of the Developers where interested members of the society can attend as observers.  All the received Tenders will be opened in the presence of all the people participating in the meeting.
  1. The Architect / PMC will conduct scrutiny of all the Tenders and prepare a comparative chart after checking the merit, reputation, technical capability, experience, financial status, quality of construction and successful completion of projects, should be some of the important parameters for selecting minimum 5 Tenders and in case of less than 5 Tenders received, list of all of them shall be prepared to be placed before the SGM. The concerned Tenderers shall also be immediately informed accordingly.
  1. In the Special General Body Meeting, the member should select the builder amongst the short-listed bidders. 3/4th majority of the present members shall give in writing their approval. The selected developers or their representatives who do not register their presence for the S GM will be considered as having given their consent for the Redevelopment proposal and further process will be carried.
  1. The Managing Committee as per the Terms & Conditions passed in the SG M in consultation with the appointed Architect / P MC and seeking their guidance shall make an Agreement with the Developer within one month.

In our next blog, we will deal with the important point you should care about when signing the agreement

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