A redevelopment checklist for housing society committees

Before the first meeting

1. Check that the society holds title to the land. If the builder never executed a conveyance in the society's favour, apply for conveyance or deemed conveyance first. Redevelopment without title is much harder to finance and negotiate.
2. Collect the title documents: the conveyance deed, property card or 7/12 extract, approved plans, occupation certificate, and the society's registration certificate.
3. Get a structural audit if the building's condition is part of the reason for redevelopment.
4. Update the members' register and the nominations, so that the society knows exactly whose consent it needs.

The Section 79A procedure

In Maharashtra, redevelopment of co-operative housing societies follows the directions issued by the State Government under section 79A of the Maharashtra Co-operative Societies Act, 1960. They prescribe the steps, the meetings and the members' approvals needed at each stage. Read the current directions before calling any meeting, because a resolution passed without following them can be challenged.

1. Members propose redevelopment and the committee calls a special general body meeting to decide whether to proceed.
2. The society appoints a project management consultant or architect to prepare a feasibility report.
3. The society prepares tender documents and invites offers from developers.
4. Offers are compared on the same basis, and the developer is selected at a general body meeting, in the manner the directions require.

What to compare in developer offers

• Additional carpet area for each member, stated as carpet area under RERA
• Monthly rent or transit accommodation, with escalation, and the brokerage and shifting allowance
• Corpus fund for each member
• Time for completion, and the penalty or extra rent for delay
• Bank guarantee or other security for the developer's obligations
• The developer's track record and the finance it has lined up

The agreements

• Development agreement between the society and the developer, with a power of attorney limited to what the developer needs
• Permanent alternate accommodation agreement (PAAA) between the developer and each member, recording the member's new flat and benefits
• Stamp duty and registration of these documents
• Registration of the project with MahaRERA, where the sale component requires it

During and after construction

• Track the approvals and the construction timeline against the agreement
• Keep rent payments and transit arrangements documented
• Before taking possession, check the occupation certificate and that each new flat matches the PAAA
• Make sure the society's records, share certificates and conveyance reflect the new building

Where committees most often go wrong

The most common problems are agreements that leave a key term vague, meetings that did not follow the 79A directions, and members whose consent was never properly recorded. Each of these can stall a project for years. Having the society's own advocate review the documents before they are signed costs far less than resolving a dispute afterwards.