Redevelopment is a collective decision of the housing society, and questions often arise regarding the necessity of obtaining signatures from every member on the Development Agreement (DA). Many societies worry about delays due to a few non-cooperative members. The law, however, provides clarity and a structured process.
Is It Mandatory for All Members to Sign the Development Agreement?
It is not mandatory for every member of the society to sign the Development Agreement.
This is because:
• The managing committee is legally empowered to execute contracts on behalf of the society
• Once the General Body approves redevelopment by the required majority, the society itself becomes the contracting party
• Individual members are not required to sign the DA unless specifically demanded by the developer
The commonly seen practice of developers asking members to sign as confirming parties is usually intended to avoid additional stamp duty on the Permanent Alternative Accommodation Agreement (PAAA).
Stamp Duty Clarification on PAAA
This confusion was resolved by:
• A Bombay High Court judgment, followed by
• A government notification clarifying stamp duty
As per the notification, the stamp duty payable on the Permanent Alternative Accommodation Agreement (PAAA) is only Rs 100, which removes the need for members to sign the DA just to avoid higher stamp duty.
Role of the Society’s Office Bearers
The society must clearly inform the developer that:
• Members have unanimously or by majority resolution
• Authorised the Chairman, Secretary, and Treasurer
• To sign and execute the Development Agreement on behalf of the entire society
This resolution protects the society legally and ensures smooth execution of the project.
What If Some Members Do Not Sign or Do Not Cooperate?
If some members refuse to sign or cooperate:
• The redevelopment process does not stop
• Their individual signatures are not required on the DA
• They are still bound by the General Body’s decision
In case of continued resistance:
• The society can follow the procedure under Section 79A directives
• Approach the Deputy Registrar for support
• Seek help under redevelopment guidelines applicable in Maharashtra
Non-cooperative members cannot legally stall redevelopment if:
• The majority has approved the proposal
• Procedures under redevelopment guidelines have been followed
• Authorisation for signing the DA has been passed in the General Body
Conclusion
All members are not required to sign the Development Agreement. The managing committee, through authorised office bearers, can execute the agreement on behalf of the society. Individual non-cooperation does not halt redevelopment, and the law protects the society’s collective decision
