The Process for Redeveloping a Society
Redeveloping a society is a structured process requiring meticulous planning and execution. The key steps involved are:
- Obtain Consent
The society’s managing committee must secure written consent from at least 51% of the society members to initiate the redevelopment process, as mandated by law.
- Appoint a Project Management Consultant (PMC)
After obtaining consent, the society should appoint a Project Management Consultant (PMC). The PMC plays a crucial role in guiding the society through the redevelopment process by providing expert advice and ensuring compliance with legal and technical requirements.
- Procedure of Section 79A
The society must adhere to the guidelines outlined in Section 79A of the Maharashtra Cooperative Societies Act. This involves drafting detailed procedures to ensure transparency and accountability throughout the redevelopment process.
- Feasibility Report Submission by PMC
The appointed PMC conducts a thorough assessment of the property and submits a feasibility report. This report evaluates the potential of the redevelopment project, including financial viability, technical considerations, and legal compliance.
- Tendering Process
Based on the feasibility report, the society initiates a tendering process to invite bids from developers. The PMC assists in preparing tender documents and ensuring a transparent and fair selection process.
- Appoint a Developer
After evaluating the received bids, the society conducts formal meetings to shortlist and appoint a competent developer through a transparent selection process.
- Execute a Redevelopment Agreement
Prepare and execute a legally binding redevelopment agreement within three months of finalizing the developer. This agreement outlines the roles, responsibilities, and timelines.
- Obtain Statutory Approvals
Procure all necessary approvals from relevant authorities, including building plans, environmental clearances, and no-objection certificates (NOCs).
- Demolition and Construction
Demolish the existing structures as per the approved plan and commence construction of new, upgraded units with modern amenities and facilities.
- Handover of Redeveloped Units
Post-construction, the developer must hand over the redeveloped units to the society members along with requisite documents such as the occupancy certificate (OC).
Essential Documents and Considerations
For a smooth redevelopment process, the following documents and factors must be in place:
- Society Registration Certificate: Verifies the society’s legal existence.
- Approved Building Plan: Includes architectural and structural plans approved by the municipal authority.
- No Objection Certificate (NOC): Ensures there are no legal or environmental impediments.
- Title Deed: Confirms the ownership of the property.
- Occupancy Certificate (OC): Certifies that the construction is compliant with regulations and safe for occupancy.
- Society Resolutions: Official decisions made during general body meetings.
- Financial Statements: Validates the society’s financial health and readiness for redevelopment.
- Rental Escalation Clause: Protects members against inflation in rental compensation during the redevelopment period.
- Reimbursement for Packers and Movers: Ensures members are compensated for relocation expenses.
- Dispute Resolution Mechanism: A pre-agreed process to address and resolve conflicts between stakeholders effectively.
By adhering to these steps and ensuring due diligence at every stage, societies can ensure a seamless and successful redevelopment journey.
Documents required for society Redevelopment
A conveyance deed transferring the title of the land from the builder / developer to the society or its members.
A legally binding agreement between the society and the developer outlining the terms of redevelopment, including timelines, responsibilities, and compensation.
A sanctioned building plan sanctioned by the local municipal corporation or planning authority and complying with the layout, construction specifications, and following the regulations of zone laws.
A certificate issued by the local municipal corporation stating that the building has complied with all the building codes and regulations and is fit for occupation.
NOCs from various authorities concerned, such as the fire station, pollution control board, etc., depending on the location of the project and the kind of activity.
Clearance and permissions from the authority concerned in case of requirement for environmental clearance, height clearance, heritage clearance, etc.
Resolutions by the members of the society to authorize the redevelopment project and agreeing to the terms of the development agreement.
Financial statements of the society, including audits, to prove the financial capability for redevelopment. Legal documents relating to the registration of the society and its bylaws.
Approved by authorized professionals, detailed architectural and structural drawings that will also comply with the building codes and safety standards.
Insurance policies covering various aspects of the redevelopment project-the construction insurance, liability insurance, and workers’ compensation insurance.
A certificate that shall certify the completion of the redevelopment project as per approved plans and that it complies with all the regulations.
Agreements in respect of any joint venture, if existing, with third parties in relation to the redevelopment project.
