The Maharashtra government has tightened rules for the redevelopment of cooperative housing societies, introducing stricter requirements for member approval, competitive bidding, documentation and project timelines.
The Co-operation Department’s September 30, 2026 Government Resolution (GR) replaces the July 4, 2019 redevelopment procedure and related circulars. It covers developer-led, self, group and cluster redevelopment.
1. Administrator cannot decide redevelopment
Only a duly elected and constituted managing committee can take the redevelopment decision. An Administrator or Authorised Officer appointed by the Registrar cannot independently approve it.
2. 20% members can demand an SGM
At least one-fifth of the members can seek a Special General Meeting (SGM) on redevelopment. The committee must take note of the request within eight days and the Secretary must convene the meeting within two months.
3. Redevelopment SGM needs a two-thirds quorum
The redevelopment SGM requires a quorum of two-thirds of the society's total membership.
If the required quorum is not achieved, the meeting must be adjourned and reconvened within the following month after giving the prescribed notice.
If the quorum is again not achieved, the meeting is cancelled and the redevelopment proposal cannot be placed before another SGM for three months.
The revised procedure also allows certain members who cannot attend physically—including those living abroad, critically ill or bedridden members, persons with disabilities and those unable to attend for unavoidable reasons—to participate through permitted video-conferencing or other remote systems.
4. Architect or PMC selection must be transparent
The committee must obtain quotations from at least three eligible architects or Project Management Consultants (PMCs). The General Body selects the consultant and approves the terms of appointment.
5. Project Report within two months
The appointed architect or PMC must conduct a detailed survey of the society's building and land.
The assessment must consider matters such as:
Conveyance and title-related aspects
Floor Space Index (FSI)
Transferable Development Rights (TDR)
Applicable development regulations
Residential and commercial areas
Open spaces and gardens
Parking
Construction specifications
Other benefits available under applicable development schemes
Where different regulatory options could provide different benefits, comparative project reports are required.
The Project Report must be prepared within two months of appointment.
6. Members can inspect redevelopment documents
The revised framework places greater emphasis on transparency.
Members must be given access to important redevelopment documents, including:
Meeting notices and minutes
Project Reports
Draft tender documents
Developer bids
Comparative statements
Draft Development Agreements
Video recordings and other prescribed records
These documents must be made available for inspection by members without charge. Copies may be obtained on payment of the prescribed fee.
7. At least three developer bids
Societies must seek at least three competitive tenders.
If fewer bids are received, the tender deadline must first be extended by 15 days, followed by another one-week extension if necessary. Available bids can then be placed before the SGM as prescribed.
8. Developer selection needs 51% approval
For the preliminary redevelopment decision, approval of at least 51% of the society's total membership is required.
An Authorised Officer from the Registrar’s office must be present. The meeting must be video recorded. A secret ballot is required if at least 20% of members demand it.
Following the meeting, the society must submit the prescribed minutes, approvals, attendance records, developer's consent and video recording to the Registrar within the stipulated period.
9. Development Agreement within three months
The Development Agreement must be executed within three months of developer selection.
It must cover safeguards such as bank guarantees, alternative accommodation or rent, member rehabilitation and carpet area. The registered Permanent Alternative Accommodation Agreement (PAAA) with individual members must also be executed within the prescribed timeline.
10. Members cannot be asked to vacate prematurely
Members should vacate only after required legal approvals are obtained and their individual PAAA is registered.
Redevelopment should generally be completed within two years from the first/plinth certificate, with an extension up to three years in exceptional circumstances.
The revised GR provides for action against office-bearers or committee members involved in violations, collusion, fraud, misrepresentation or conduct detrimental to members’ interests under the Maharashtra Cooperative Societies Act.
It also bars society office-bearers or committee members from acting as the developer, subject to the restrictions specified in the order.
The revised framework makes member participation, competitive tendering, transparency and time-bound documentation central to cooperative housing redevelopment.
For societies, the key requirements are clear: obtain proper member approval, maintain complete records, invite competitive bids, conduct developer selection transparently and follow the prescribed timelines at every stage.
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