Redevelopment Manual PDF
Redevelopment Manual PDF
Redevelopment Manual PDF
CHAPTER 1
INTRODUCTION ON REDEVELOPMENT
If your Society is planning for Redevelopment, then the members of the Society should be
familiar with the process for undergoing Redevelopment. The following points will make
understanding the redevelopment process better.
What is Redevelopment?
Redevelopment means demolishing the Old Structure and replacing the same with New
Structure with new Dimensions and Space.
Can a Society opt for Redevelopment even if Structural Report does not recommend
it?
No, as the Society will be required to get necessary permissions from all the concerned
Authorities.
1
If the member of the Society are not satisfied with the Structural Audit, can the
Society get a second Structural Audit Report from another Structural Auditor?
Yes, by all means if the Society is prepared to bear the additional financial burden.
Do members need to prove their contention for demanding a double check on the
Survey Report?
It is not necessary as a second opinion is always acceptable.
• Better planned and designed flats with earthquake structure with attached bathrooms
in bedrooms will be available.
• Corpus fund received by each individual member will take care of increase in the
maintenance cost of the Premises or could be utilised for other purposes.
• Additional area of 25-30% will be received as compensation from the Developer. Also,
additional space, if available, could be purchased from the Developer at best available
price.
• Modern facilities / amenities / gadgets like lifts, intercom system, smoke detectors, fire
fighting alarm system, concealed plumbing, concealed wiring for electricity, telephone,
cable TV etc. will be available.
• Stilt or under ground parking will be available which will ease space on the ground.
• Clubhouse, Swimming Pool, Gymnasium, Community Hall etc. will be available.
• Any lacuna in preparation of Redevelopment Deed would result in a great loss to the
members who are eligible for many perks in consideration of giving permission for the
project.
2
• For considerable period of time, members are required to give up possession of their
flats which disrupts their age old routine.
• Residential Complexes if converted to Commercial Complexes are seldom preferred
for housing purposes or dwellings.
• Additional new members would take longer time to gel with the original members,
resulting in disputes on various issues.
• Additional members will require extra consumption of water creating scarcity or
shortage of available water supply.
• Additional vehicles will require additional parking space.
• New construction loaded with all kinds of modern amenities which will in turn increase
the cost of maintenance to be paid to the Society.
• The Tax burden is high and in case the Occupation Certificate (OC) is not procured,
Municipal charges and Water charges are high
• There is increase in Property Taxes.
• Additional area received will attract Stamp Duty and Registration Charge at current
Market Price.
• There is always a fear of half way stalled project resulting in Court case.
3
CHAPTER 2
For starting Redevelopment process, the following process should be carefully followed.
4
No member of the Society can hold the Society to ransom on flimsy grounds. The Society
will have to initiate action against such members.
What action can the Society initiate against those members who oppose such kind
of a move that is supported by a huge Majority/
Then Society can issue show cause notice to the members and take action even to the
extent of Expulsion from the Society.
Does a Society require to form a Redevelopment Committee or can a Managing
Committee carry out the job independently?
The General Body has the powers to decide on this issue. Appointing a Redevelopment
Committee is not mandatory but is highly recommended to ensure transparency in the
dealings.
What are the Powers of the Redevelopment Committee?
The General Body has to decide on the powers to be allocated to the Redevelopment
Committee. Generally the following powers are to be given to the Redevelopment
Committee:
• To approve or reject the proposal placed before them by the Managing Committee of
the Society.
• To give suggestions, if any, regarding the Proposal placed before them by the
Managing Committee.
What is the tenure of the Redevelopment Committee?
Generally the tenure of the Redevelopment Committee should be from the start of the
Project to the completion of the Project to ensure the continuity of the control of the
Project.
Whether elections are to be held for selection of members for the redevelopment
Committee?
The Election Rules are not binding on the Redevelopment Committee. They should be
selected by the General Body from amongst senior members of the Society who are
educated to read and understand the various Documents and have active interest in
redeveloping the Society.
Can a Redevelopment Committee / member of a Redevelopment Committee be
terminated?
If the General Body feels that a member of the Redevelopment Committee or the entire
Redevelopment Committee acts to the detriment of the interests of the Society and
obstructs the working of the Managing Committee in carrying out Redevelopment, then on
the recommendation of the General Body, the tenure of a member a Redevelopment
Committee or the entire Redevelopment Committee can be terminated.
5
CHAPTER 3
REDEVELOPMENT DOCUMENTS
For successful completion of Redevelopment, the Office Bearers of the Society should be
aware of the Documents to be kept ready and the Documents to be obtained from the
Builder
What are the various Documents and Agreements to be prepared in the process of
Redevelopment?
6
1. Redevelopment Agreement.
2. Indemnity Bond by the Developer.
3. Format of Bank Guarantee from the Builder.
4. Power of Authority from the Society to the Developer.
5. Agreement for alternate accommodation.
6. Consent Letters from the members to the Society.
7. Consent Letters from the members of the Society to Builder / Developer / BMC.
8. Memorandum of Understanding (MOU) between the Society and Builder / Developer.
9. Appointment Letter from the Society to the Builder / Developer.
10. Possession Letter from the Builder to the Members.
11. Application by new members to the Society for becoming members in Form no. 3.
12. Undertaking from the new members to the Society.
13. Format of the Resolution to admit new members.
14. List of Documents required to be collected from the Builder.
15. Revocation / Cancellation of Power of Attorney.
7
CHAPTER 4
SUCCESSFUL REDEVELOPMENT
1. The offer received from the Developer should commensurate with the potential of the
Plot taken for redevelopment as per Architect’s report.
2. The Builder should be strictly chosen on the basis of his Financial Capacity and Track
Record and not on the basis of the highest offer received.
4. All the members of the Society should give their Consents to avoid disputes.
5. Complete details of the offers made by the Developer should be clearly understood by
all the members of the Society and there should be transparency in the dealings.
6. Redevelopment Committee should be formed from amongst the other members of the
Society by including two or three members from the Managing Committee to oversee
the entire Redevelopment process to ensure that complete transparency is maintained
by the Managing Committee of the Society.
8. Bank Guarantee for the total cost of the Redevelopment Project should be obtained
from the Developer covering the full period of construction.
10. The Managing Committee and the Redevelopment Committee members should
conduct regular inspection when the construction is in process to ensure that there are
no deviations from the plans / offers.
8
CHAPTER 5
The Office Bearers of the Society are requested to follow the following steps for
redeveloping their premised successfully.
1. Redevelopment-
Redevelopment of the Building shall be considered by the Society only if an adverse
Structural Audit Report is received from an approved Structural Auditor appointed by the
Society to do Structural Survey / Audit of the Building as per Bye-Law no. 77 and his
report should clearly mention the details of Defects / remedies / cost of Repairs.
2. Conveyance-
The Society should reconsider Redevelopment only if the Society has Conveyance Deed
in their favour. Without Conveyance, the Society should not pass any Resolution for
redevelopment but should move towards major repairs.
4. Starting Redevelopment-
The Society in which Redevelopment work of the Buildings is required to be undertaken,
an application of Requisition to hold a Special General Body Meeting to consider and
discuss the Redevelopment Project and suggestions on the same, is to be submitted to
the Hon. Secretary of the Managing Committee which is properly elected as per the
provisions of the Society’s Bye–Laws and also constituted as per the provisions of the
MCS Act 1960. The Requisition application is to be signed by not less than 1/4th of the
total members of the Society.
9
period of 1 month, the Hon. Secretary will call the General Body Meeting of the members
of the Society giving 14 clear days notice for which acknowledgement will be collected
from every member and maintained in the records of the Society. The quorum for the SGM
shall be 3/4th of the total number of members of the Society. If the quorum is not attained,
the SGM shall be adjourned for 8 days. (If there is no quorum in the adjourned meeting also, then the Meeting shall
be dissolved considering that the members have no interest in the Redevelopment of the Society. In such a situation, the
Redevelopment subject cannot be brought before any SGM for its approval for further one year).
In the Meeting, 3/4th of the members present in then Meeting should agree for
Redevelopment and then a Resolution should be passed for going ahead for
Redevelopment of the Building and authorising the Managing Committee to obtain
permission from the Deputy Registrar of Co-operative Societies of their respective Ward
Office for Redevelopment. A Resolution should also be passed authorising the Managing
Committee to obtain quotations from experienced Architects / Project Management who
are empanelled by Government / Local Authority, for the work of preparing Feasibility
Report and framing Rules / Conditions for their work.
7. Feasibility Report-
Within one month from the date of receipt of permission for re-development from the office
of the Dy. Registrar of Co-operative Societies, the Society should appoint an Architect or a
Project Management Consultant to survey the Project Plot /Area / F.S.I. / T.D.R. / B.M.C. –
MHADA rules applicable / technical / financial details including viability, comparison of
repairs v/s re-development and submit a Feasibility Report. This Feasibility Report should
be circulated to all the members of the Society within one month from the date of receipt of
the Report along with the Managing Committee’s views and their opinion / objections on
the same should be called for in writing for discussion in the next Special General Body
Meeting.
10
representing each building of the Society, to oversee the working of the Managing
Committee.
9. Appointment of Consultants-
The Office Bearers shall shortlist Architect/Civil Engineer/ Financial Consultant / Project
Management Consultant for appointment and recommend their names to the Re-
development Committee to confirm their choices and fees chargeable by these
professional/s. The Managing Committee should call for a SGM and introduce these
Professionals to the Members of the Society and give their recommendations. A decision
should be taken in this Meeting to appoint any or all them of them and fix their duties and
fees.
11
Tender. The details of offers received should be read out in the meeting and a
provisional merit list should be made in the meeting itself.
12
16. Re-development Agreement-
On receipt of the plan for the new buildings, the Managing Committee and the Re-
development Committee members should first approve the same and satisfy
themselves that the same is as per their offer. Then, the Society should call for a
SGM no. 7 for approving the plan of the flats / building and amenities offered by the
Builder. When the same are approved in the General Body, the Society should pass
a resolution to sign a Redevelopment Agreement with the Developer also fix the
date for vacating the old flats and receiving the compensations.
13
CHAPTER 6
REDEVELOPMENT IN A NUTSHELL
Govt. of Maharashtra
No. S.G.Y.2007/L.No. 554 /14-C
Co-op. Marketing and Textile Dept.
Date: 3rd January 2009
14
Submit your inputs, suggestions, recommendations and also names of known
experienced and expert Architects/PMC’s in writing along with their approval letter
min 8 days before date of the meeting
Min 3/4th Attendance required at SGBM
Primary resolution required to be passed
After the approval of the Resolution for Redevelopment, Meeting will consider
following business:
approve the Terms and Conditions along with the scope of the work to be carried
Minutes of the Meeting to be circulated within 10 days to members with
acknowledgement
Copy of the minutes to be sent to office of the Registrar.
Issue letter of Appointment to the Architect / PMC selected by the SGM within 15
days of the meeting
P M C …………….Scope of Work
Carry out survey of the Land and Building
Seek information regarding the conveyance
Seek information about available F.S.I. and T.D.R
Study Rules of the MHADA / S.R.A. / Municipal Corporations, as applicable from
time to time
To prepare a feasible project & later prepare Project Report within 2 months from
the date of their appointment
Copy of the Project Report to be made available to the members for the inspection.
Members should submit their suggestions, min 8 days before Managing Committee
Meeting
Suggestions received from the members to be sent to the Architect / PMC for their
consideration, 7 days before the Jt. Meeting
Hon. Secretary of the society to call a joint meeting of M C and appointed Architect /
PMC by issuing notice and obtaining acknowledgement of the same
Obtain approval from majority towards the submitted Project Report
Further….
Architect / PMC to prepare provisional draft of the Tender
Tenders to be floated inviting competitive offers
One of the primary requirement to be Unchangeable, either carpet area or corpus
fund – in case of Developer.
Publish list of the Tenders received till the last day on the Notice Board of the
society.
Within 15 days of the last date of the receipt of the Tenders, Hon. Secretary to call
Sp Meeting of the Managing Committee to be attended by the official
representatives of the Developers interested members
15
TENDER’S ……..
All the received Tenders will be opened in the presence of all the people
participating in the meeting.
Architect / PMC will conduct scrutiny of all the Tenders and prepare a comparative
chart
selection of minimum 5 Tenders to be placed before the SGM
Concerned other non present Tenderers to be informed accordingly.
SGB……..Selection of Builder
Within 8 days, Society to apply to the Registrar, C.S. to appoint Authorised Officer
for attending Sp.G B Meeting
The Registrar to appoint Authorised Officer.
Selection of Developer on the basis of experience, caliber, Market status, technical
expertise and competitive rates
MOST IMPORTANT…
Video Shooting of the SGM, at the expenses of the society
Only bonafide member of the society shall be eligible to attend the SGM.
Members would require to carry their individual identification papers to attend the
meeting
Complete business of selection of Developer (Contractor) and allied matters be
carried out in presence of the Authorised Officer.
In case of no quorum meeting will be dissolved considering that members have no
interest in the Redevelopment of the society building
Subject cannot be brought before any SGM for its approval for further one year.
16
Procedure of inviting application for booking the salable flats/ shops and fix the
method to select the applicant.
Also………….
Agreement should be registered under Registration Act 1908
Agreement shall have specific mention of the agreed Carpet Area
Building Plans which are approved by the Municipal Corporation / Competent
Authority shall be again placed before the General Body Meeting for information. A
member wishing to have a copy of the approved Documents can get the same on
his written application. The committee is bound to issue the information on
charging a reasonable fee.
Selection Process...
3/4th majority of the present members shall give in writing their approval
Selected Contractor or their representatives who do not register their presence for
the S G M will be considered as having given their consent for the Redevelopment
proposal and further process will be carried.
Managing Committee shall make an Agreement with the Contractor within one
month.
17
APPENDIX 1
Govt. of Maharashtra
No. S.G.Y.2007/L.No. 554 /14-
/14-C
Co-
Co-op. Marketing and Textile Dept.
Date : 3rd January 2009
Since there are large number of projects under process for Re-development of the Buildings of the
Co-op. Hsg. Societies in the State of Maharashtra. We are in receipt of the numerous complaints
received from the members against the Management of the Co-op. Hsg. Societies which are
undergoing the Re-development process. The nature of complaints received from majority of the
1. While carrying out the process, members are not taken into confidence.
4. Breaches of the provisions of the MCS Act, /rules and Bye-laws in the working of the
society.
And
Since, there are no laid down guidelines and / or firm procedures declared, based on the various
complaints received and discussion held with the concerned experienced professionals the
Commissioner for co-operation and Registrar a Co-op. Societies, Maharashtra State, Pune had
appointed a Study Group under the Chairmanship of the Jt. Registrar of Co-op. Societies, CIDCO to
consider various types of complaints on the subject and discuss the same with all the concerned
parties in the Sector. The Study Group after discussion with all the parties in the Co-op. Housing
field opined that Rules and Regulations for the Redevelopment of the buildings of co-op. Hsg.
18
As such, under Section 79 (A) of the M.C.S. Act 1960, the Government is issuing following Orders
which are as under :
The following order will be called as “Order of Redevelopment of the Co-op. Hsg. Society’s
Buildings”.
members of the society to consider and discuss the Redevelopment Project and suggestions
on the same, is to be submitted to the Hon. Secretary of the Managing Committee which is
properly elected as per provisions of the society’s Bye-laws and also constituted as per the
provisions of the MCS Act 1960. The requisition application is to be signed by not less than
th
1/4 of the total members of the society.
the society, within 8 days of the receipt of the application, should consider the same and
within a period of 1 month the Hon. Secretary will call the General Body Meeting of the
members of the society giving 14 clear day notice for which acknowledgement will be
collected from every member and maintained in the records of the society.
Before holding of the meeting the committee shall call quotations from minimum five
Architects or Project Management Consultants who are empanelled with the Government or
any local competent Authority. After considering all the quotations received, the Special
(1) To take primary decision, after considering the demands and suggestions from the
(2) To select expert and experienced Architect / Project Management Consultant, who are
empanelled by Government / local Authority, for the work of Redevelopment and frame
19
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
days before the date of the meeting. Further approval letter of the referred Architects /
Project Management Consultants shall also be submitted stating that they are interested to
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
society’s building/s will be considered and noted in the minutes of the meeting along with
th
the observations made by all the members. Thereafter a majority of 3/4 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
(a) To approve the Terms and Conditions along with the scope of the work to be
carried out by the eligible Architect / PMC who can be selected from the Panel of
20
a) To carry out survey of the Land and Building.
b) To seek information regarding the conveyance of the society’s land.
c) To seek information about 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,
according to ownership of the land and current provisions of the Government.
d) To prepare a feasible project report considering suggestions, references and
recommendations made by the society members about the redevelopment taking into
account the residential area, commercial area, open spaces, Garden, Parking, the
specification of construction etc.
e) The Project Report shall be prepared and submitted to the committee by the Architect /
PMC within 2 months from the date of their appointment.
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 members
suggestions shall be given to every member and their acknowledgement, shall be kept in
b) 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.
c) The said Jt. 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 finalising the draft of the Tender document. The Architect / PMC will
prepare the draft Tender for inviting competitive offers, where in the 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.
21
(a) The Hon. Secretary of the society will prepare list of the Tenders received till the last
(b) 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 meting will be
the society can attend as observers. All the received Tenders will be opened in the
presence of all the people participating in the meeting. The Architect / PMC will
conduct scrutiny of all the Tenders and prepare a comparative chart. The expertise,
status, experience and competitive rates offered etc. will be examined by the Architect /
PMC and a selection of 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
With the help of the appointed Architect / PMC, selection of the developer to be carried
out from those selected tenders, wherein the selection of one developer on the basis of
carried out in the Special General Body Meeting, where the committee will make an
application, attached with the members list, within a period of 8 days, to the Registrar,
called to select one Developer from amongst the Tenderers selected by the
Consultants. The Registrar will take decision on the application and appoint Authorised
Officer.
The Hon. Secretary of the society, for appointing the developer, shall within one month
of the appointment of the Authorised Officer and with his prior permission fix day, date,
time and venue of the SGM. The Notice of the said SGM will be issued 14 days before
the date of the SGM which shall be hand delivered as well as sent to every member by
Registered A.D. Post and the acknowledgements will be kept in the Society’s Records.
Similarly the Representative of the Registrar’s Office will ensure the presence of the
SGM. The Arrangement for Video Shooting of the SGM, at the expenses of the society,
shall also be made. Only bonafide member of the society shall be eligible to attend the
22
SGM. Members would require to carry their individual identification papers to attend the
Developer and allied matters are carried out in presence of the Authorised Officer.
If the quorum is not attained, the SGM shall be adjourned for 8 days. In case of no
quorum for the said adjourned meeting, the meeting will be dissolved considering that
the members have no interest in the Redevelopment of the society building. The
subject cannot be brought before the any SGM for its approval for further one year.
business of the meeting. On the designated day, date and time of the meeting, only in
the presence of the required representative and Authorised Officer and with the
th
presence of sufficient 3/4 quorum as mentioned, the meeting will undertake the
following business.
3. To select one Developer, with Terms and Conditions, for the Redevelopment of the
th
For appointment of Developer, 3/4 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 G M will be considered as having given their consent for the
The Managing Committee as per the Terms & Conditions passed in the S G M in
consultation with the appointed Architect / P M C and seeking their guidance, shall make
23
The Agreement as per the suggestions of the appointed Architect / P M C along with
1. The completion period of Redevelopment shall be of not more than two years and in
2. The Developer will give Bank Guarantee of 20% price of Redevelopment Project.
3. The Developer will try to give alternate accommodation to the members in the same
area till the Redevelopment Project is complete. Otherwise he will pay monthly rent
5. All the new members shall be admitted in the society after completion of the
Redevelopment Project and after approval of General Body Meeting of the society
only.
6. The Agreement shall have specific mention of the agreed Carpet Area.
8. The flat owners will vacate their flats only after receipt of all the legal permissions
10. Agreement between contractor, Architect and society shall have a condition that
disputes, if any, on the Redevelopment work shall be settled u/s Rule No. 91 of the
Rules.
11. After receipt of the Occupation Certificate for the Redeveloped building the
made by lots, only after completion of the building the Developer should make
available the lottery system after completion of the Redevelopment Project. The
developer should arrange for draw of lots for the distribution of flats in presence of
Registrar’s representative and video shooting of the complete process will be made.
12. No member of the Committee or Office bearer shall be a Developer or his relative.
13. The Building Plans which are approved by the Municipal Corporation / Competent
Authority shall be again placed before the General Body Meeting for information. A
member wishing to have a copy of the approved Documents can get the same on his
24
written application. The committee is bound to issue the information on charging a
reasonable fee.
Note: Above circular is the liberal translation of the original Marathi Circular
25