Redevelopment of Co-operative Housing Societies (CHS) in Mumbai is a transformative journey that requires a clear understanding of legal frameworks. The primary directive governing this process is Section 79A of the Maharashtra Co-operative Societies (MCS) Act, 1960.
The 51% Consent Rule
One of the most significant updates in recent years is the reduction of the mandatory consent threshold. Previously set at 70%, the requirement for approval to proceed with redevelopment is now 51% of the total society members. This change prevents a small minority from stalling projects that benefit the majority.
Mandatory Step-by-Step Process
The Section 79A guidelines mandate a transparent, 10-step roadmap. This includes the initial requisition by members, appointment of a Project Management Consultant (PMC), preparation of a feasibility report, and a transparent tendering process for developer selection. Following these steps is crucial to ensure the process is legally sound and fair to all members.
Protections for Society Members
To safeguard the interests of flat owners, the policy mandates several protections. Developers must provide a bank guarantee equivalent to 20% of the total project cost. Additionally, projects must be completed within a specified timeline, usually 2 to 3 years from the date of the Commencement Certificate (CC).
Role of the PMC
The appointment of an independent, government-empanelled PMC is mandatory. The PMC acts as the society's technical advisor, evaluating bids, monitoring construction quality, and ensuring that the developer adheres to the agreed-upon terms. This ensures that the society's vision is translated into reality without compromise.
Why Transparency Matters
Transparency is the cornerstone of a successful redevelopment project. All Special General Meetings (SGMs) regarding redevelopment should ideally be video-recorded. Open communication between the Managing Committee and the residents helps build trust and ensures that everyone is on the same page regarding FSI benefits, extra area, and corpus funds.
