Recently, I had
the occasion to deal with a Redevelopment of the Building of a Co-operative
Housing Society; and therefore, I am pleased to share the process involved in
Redevelopment.
Maharashtra Govt,
by way of a Circular, have prescribed a procedure to be followed whilst Housing
Societies sought to redevelop their Building.
As per the
directive under Section 79(A) of Maharashtra Co-operative Societies Act, 1960, to
all the Co-operative Housing Societies in the State of Maharashtra.
Regarding
Redevelopment of Buildings of Co-operative Housing Societies.
GOVERNMENT OF
MAHARASHTRA
No. CHS
2007/CR554/14-C
Date: 3rd
January 2009
Whereas,
buildings of Co-operative Housing Societies in the State of Maharashtra are
being redeveloped on a large scale. A number of complaints were received from
members against managements of Co-operative Societies in which redevelopment is
taking place. In respect of most of the Co-operative Housing societies, nature
of complaints relating to redevelopment is as under:-
1.
Not
taking the members in confidence in the process of redevelopment.
2.
There
is no transparency in tender process.
3.
Appointing
contractors arbitrarily
4.
To
work by violating provisions of Co-operative Act, Rules and Bye-Laws.
5.
Not
planning Redevelopment Project Report.
6.
Not
adopting proper procedure in finalizing tenders.
7.
There
is no similarity in agreements with Developers.
Whereas there is
no concrete policy in respect of all above points of complaint and therefore
Co-operation Commissioner and Registrar, Co-operative Societies, Maharashtra
State, Pune had appointed a Study Group under the Chairmanship of Joint
Registrar, Cooperative Societies (CIDCO) to study the complaints received at
various levels and for consultations with all constituents working in the
relevant fields. The said Study Group has expressed the opinion that it is
essential to frame regulations for redevelopment of buildings of Co-operative
Housing Societies after consultation with all the constituents in the field of
Co-operative Housing.
Therefore the Government is issuing following directive under Section 79(A) of Maharashtra Co-operative Societies Act, 1960.
The following directive be termed as “Directive for Redevelopment of Building of Co-operative Housing Society”.
At least 25% of the Members of the
Society shall submit a request to the Society to convene SGBM, to finalize
Policy on Redevelopment of the Building of the Society.
Before convening this SGBM, the Society
has to take the following steps –
(a) 14 days prior Notice to Members;
(b) Society should obtain list of Architects /Redevelopment Project
Management Consultants on the panel of Government / Local Authority and obtain
quotations from minimum 3 experienced and expert persons for preparing
project report for redevelopment work of the building.
The Members, among other things, may
suggest names of Project Management Consultants (PMC) for Redevelopment of the
Society. This suggestion must be accompanied by consent Letter from the
concerned PMC.
Following business will be transacted at
the said SGBM –
(a) To select PMC;
(b) To finalize terms of reference with
PMC in respect of scope of their obligations in the Redevelopment of the
Building of the Society;
(c) To submit an outline of
Redevelopment of Building. At this SGBM, the presence of PMC is not
contemplated, nor barred.
Minutes of aforesaid SGBM would be sent
to Members, as well as to Registrar (Dy. Registrar)
The PMC so selected at the SGBM, would
then be formally appointed by the Society, and Society will enter into
agreement with PMC.
Actions
by PMC after their Appointment
(a) Survey of Society’s Land &
Building;
(b) Information about conveyance of the
Society;
(c) Study of prevailing policy of State
Govt in respect of Redevelopment, FSI etc.
(d) Taking into consideration the
suggestions and recommendation of Members of the Society;
(e) Preparing Project Report within 2
months from date of their appointment; and submitting it to the Society.
Society will convene Joint Meeting of
PMC and Members. Steps to be taken by Society before convening this Jt.
Meeting.
However, no time is prescribed, but at
least 14 days prior Notice must be given to all Members, because Members are
called upon to submit their suggestions eight days prior to meeting; and Members
are permitted to have access to aforesaid Project Report in at Society’s
office;
7 days prior to aforesaid Jt. Meeting,
the suggestions received from Members were to be forwarded to PMC.
Holding
of Jt. Meeting:
(a) Discussion on Project Report.
(b) Approval of Project Report with
necessary changes.
Thereafter, PMC will prepare draft
Tender.
Society
will convene another Jt. Meeting to finalize draft Tender. The Members in the
said meeting may suggest names of reputed Builders / Developers.
After
draft Tender is approved, PMC will invite bids from reputed Builders /
developers.
On
the last day of receiving bids, the Society shall cause to prepare the list of
offers / bids received; and shall cause to put up the same on the Notice Board
of the Society.
Society
will convene Special Meeting of Managing Committee. Authorized representatives
of bidders may remain present in the said Meeting. Business to be transacted in
the said Meeting –
Tenders
will be opened in the presence of all;
PMC
will prepare comparative chart of 5 best bids and would place it before this
Meeting; and these 5 bidders would be informed about they being considered.
The
Society will convene SGBM for selection of developer. Steps before convening
this Meeting –
(a)
The Society will forward an Application before Registrar (Dy. Registrar) to
appoint his authorized representative to remain present in SGBM, wherein
Developer would be selected;
(b)
The Society will coordinate with the so appointed auth. Rep. of Registrar, and
according to his convenience, will fix date / venue of next SGBM to select
developer;
(c)
14 days prior Notice must be given to all Members.
Steps / actions
in the said SGBM –
(a)
Meeting should be video-graphed;
(b)
No persons, other than formal Members are entitled to attend this Meeting. Auth.
Rep. of Dy. Registrar must remain present in the said Meeting;
(c)
Comparative chart of bids selected will be furnished to Members present;
(d)
Bidders will make Presentation of their respective offers;
(e)
By ¾ majority of Votes by present Members, the developer will be selected;
(f)
Finalizing terms and conditions with the selected developer.
In
consultation with PMC, agreement with Developer will be entered into.
Sandeep Jalan
Advocate.
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Law
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Thank you.
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