The Maharashtra government has introduced a revised framework for redevelopment of cooperative housing societies, replacing the redevelopment framework issued in 2019. One of the most significant changes is the prescribed timeline for completion of redevelopment projects.
Under the revised framework, developers are required to complete redevelopment within two years from the stage at which the foundation or plinth is approved by the competent authority. The period may extend up to three years in exceptional circumstances, subject to the applicable conditions.
The revised framework also places greater emphasis on transparency, competitive developer selection, member participation, project monitoring and protection of members during the redevelopment process.
For housing societies, the changes are significant because the framework does not focus merely on selection of a developer. It introduces timelines and procedural requirements covering the process from appointment of the Project Management Consultant (PMC) to developer selection, execution of the redevelopment agreement, shifting of members and allotment of redeveloped premises.
Project Management Consultant to Assess Development Potential
Under the revised framework, the society is required to appoint a Project Management Consultant (PMC) for the redevelopment process.
The PMC is expected to examine important aspects of the property and redevelopment proposal, including:
- Land title
- Development potential
- Permissible FSI
- Availability and utilisation of TDR
- Parking requirements
- Open spaces
- Residential requirements
- Commercial requirements
- Applicable development options
The PMC therefore has an important role in determining what can potentially be achieved through redevelopment before the society proceeds to select a developer.
Comparative Project Reports Within Two Months
The revised framework requires the PMC to prepare separate project reports and a comparative statement for different applicable development options.
This is an important change because members should be able to understand the benefits and implications of different redevelopment possibilities rather than evaluating a developer’s proposal in isolation.
The project report is required to be completed within two months.
The comparative statement can enable members to examine matters such as:
additional carpet area, development potential, financial benefits, parking, commercial components, amenities and other redevelopment benefits.
This can provide a more informed basis for the society’s decision-making process.
At Least Three Developer Bids
The revised framework also seeks to introduce greater competition in the process of selecting a developer.
The society is required to seek at least three bids from developers.
If fewer than three bids are received, the society cannot immediately conclude the selection process. The tender process must first be extended for at least 15 days, followed by a further one-week extension as prescribed.
Existing bidders may also be permitted to submit revised offers.
The objective is to provide developers with an adequate opportunity to participate and to enable the society to compare competing proposals before making its decision.
Redevelopment Agreement Within Three Months
Once the developer has been selected, the society is required to execute the Redevelopment Agreement within three months.
The agreement should clearly record the important commercial, legal and project-related obligations of the developer.
Among other matters, the redevelopment agreement is required to address:
- Completion period
- Bank guarantee
- Alternative accommodation
- RERA carpet area
- Dispute-resolution mechanism
- Other agreed redevelopment obligations
This requirement is important because a redevelopment proposal should not remain indefinitely at the stage of developer selection without the parties moving towards a legally binding agreement.
Two-Year Completion Timeline From Foundation/Plinth Stage
One of the most important provisions in the revised framework is the prescribed completion period.
The redevelopment project is required to be completed within two years from the foundation/plinth certificate stage, subject to the terms and conditions of the applicable framework.
An extension of up to three years may be permitted in exceptional circumstances.
The provision therefore seeks to bring greater certainty to redevelopment timelines.
For existing members, the completion period is particularly important because redevelopment can involve several years of uncertainty, including displacement from the existing premises, temporary accommodation and waiting for possession of the redeveloped flats.
Exceptional Extension Should Not Become an Automatic Extension
The distinction between the normal completion period and an exceptional extension is important.
The framework contemplates two years as the stipulated period, while an extension up to three years is intended for exceptional circumstances.
Therefore, the possibility of an extension should not be treated as an automatic three-year redevelopment period.
The redevelopment agreement should clearly specify the completion timeline, consequences of delay and obligations of the developer.
Approved Building Plans to Be Placed Before the General Body
The revised framework also emphasises member transparency by requiring approved building plans to be placed before the general body.
This enables members to examine the plans and understand the actual redevelopment proposal approved by the competent authorities.
Members should carefully compare the approved plans with the benefits promised during the developer-selection process and recorded in the redevelopment agreement.
Any material difference should be examined before construction progresses further.
Redevelopment Records to Be Available for Free Inspection
Another important provision is the requirement that relevant redevelopment records should be made available to members for inspection free of cost.
Transparency is particularly important in redevelopment because the process involves numerous documents, approvals and financial commitments.
Members should be able to examine relevant records concerning:
- PMC reports;
- Comparative development proposals;
- Developer bids;
- Final developer selection;
- Redevelopment agreement;
- Approved plans;
- Permissions;
- Project progress; and
- Other important redevelopment documents.
Free inspection can help members monitor whether the redevelopment is proceeding according to the terms approved by the society.
Managing Committee Members and Their Relatives Barred From Becoming Developers
The revised framework also addresses potential conflicts of interest.
A managing committee member, office-bearer or their relative is barred from becoming the developer of the society’s redevelopment project.
The provision is intended to maintain transparency and prevent persons responsible for managing the society from obtaining a direct development interest in the same project.
This is particularly important because the developer-selection process involves decisions affecting the property and financial interests of all members.
Permanent Alternative Accommodation Agreement Before Shifting
Protection of existing members during the transition period is another important aspect of the revised framework.
Members should receive appropriate alternative accommodation arrangements, with preference for accommodation in the same area as far as possible.
Depending upon the agreed arrangement, members may receive:
- Alternative accommodation in the same locality;
- Agreed rent;
- Deposit arrangements; or
- Transit accommodation.
The framework also requires a registered permanent alternative accommodation agreement before members are shifted.
This is a significant safeguard because members should not be asked to vacate their existing homes merely on the basis of informal assurances from the developer.
Individual Agreements Within Three Months
The revised framework also provides a timeline for execution of individual agreements.
The individual agreements are required to be executed within three months of registration of the redevelopment agreement, as applicable under the framework.
The agreement should clearly establish the member’s redevelopment entitlement, including the RERA carpet area and other agreed benefits.
Members should carefully verify their individual area and other entitlements before signing.
Special Protection for Shops and Commercial Premises
Commercial occupants have also been given specific protection under the revised framework.
For shops and other commercial premises, vacation is linked to the completion of the necessary legal approvals and registration of the permanent alternative accommodation agreement.
The objective is to protect the rights of commercial occupants during redevelopment.
This is particularly important because displacement of a commercial occupant can affect the person’s business, customer base and livelihood.
The revised provisions therefore seek to ensure that commercial occupants do not lose their existing rights merely because redevelopment has been approved.
RERA Carpet Area Must Be Clearly Recorded
Another important requirement is the reference to RERA carpet area in the redevelopment agreement.
The carpet area is one of the most important benefits received by an existing member in redevelopment.
The agreement should therefore clearly specify the area to which each member is entitled.
Members should avoid relying on vague expressions such as “approximately,” “subject to approval” or unspecified future changes unless the legal and commercial consequences are clearly addressed.
The final registered documents should accurately reflect the agreed redevelopment entitlement.
New Members and Share Certificates After Possession
The revised framework also fixes a timeline concerning the membership of purchasers of newly constructed flats and issuance of share certificates.
The society is required to decide applications relating to membership and share certificates within three months of possession, subject to the applicable provisions.
This provides greater certainty to purchasers of newly constructed premises and helps the society complete the post-redevelopment membership process within a defined period.
New Flat Allotment Should Follow the Agreed Process
The allotment of newly constructed flats should follow the existing rights, agreed redevelopment terms and applicable statutory procedure.
The society should maintain clear records of the original members, their existing carpet areas and their agreed redevelopment entitlements.
Any change in allotment should be properly documented and approved in accordance with the applicable legal framework.
Greater Transparency in Developer Selection
The revised framework represents a shift towards greater transparency in the developer-selection process.
The requirement for a PMC assessment, comparative project reports and multiple developer bids is intended to provide members with more information before they approve a redevelopment proposal.
Members should therefore not evaluate developers solely on the basis of the highest corpus or additional carpet area.
The overall proposal should be examined, including:
financial capacity, technical capability, past redevelopment experience, litigation, project completion record, proposed timeline, bank guarantee, construction specifications, carpet area, transit arrangements and contractual protections.
Redevelopment Should Be Monitored After Developer Selection
Developer selection is only one stage of redevelopment.
After selection, the society should continue monitoring:
- Execution and registration of agreements;
- Approval of plans;
- Commencement of construction;
- Foundation/plinth stage;
- Construction progress;
- Compliance with sanctioned plans;
- Alternative accommodation arrangements;
- Bank guarantee;
- Project completion timeline; and
- Handover and possession.
The revised framework’s emphasis on timelines and documentation makes continuous monitoring by the society particularly important.
What the Revised Framework Means for Housing Societies
The revised redevelopment framework introduces several important safeguards:
Two-year completion timeline: Redevelopment is expected to be completed within two years from the foundation/plinth certificate stage, subject to the prescribed exceptional extension.
PMC scrutiny: The development potential and different redevelopment options must be examined.
Comparative proposals: Members should have the benefit of comparing different development options.
Competitive bidding: At least three developer bids are required, with prescribed extensions if fewer bids are received.
Three-month DA timeline: The redevelopment agreement must be executed within three months of developer selection.
Transparency: Members can inspect important redevelopment records without charge.
Conflict-of-interest protection: Managing committee members, office-bearers and their relatives are barred from becoming the developer.
Registered alternative accommodation agreement: Members should have legal protection before vacating their existing premises.
Commercial occupant protection: Shops and commercial premises receive specific safeguards before vacation.
Post-possession membership timeline: The society is required to address membership and share-certificate applications within the prescribed period.
The Maharashtra government’s revised redevelopment framework places greater emphasis on time-bound redevelopment, transparency, competitive developer selection and protection of existing members.
The most significant change for members is the requirement that redevelopment should ordinarily be completed within two years from the foundation/plinth certificate stage, with an extension up to three years contemplated in exceptional circumstances.
The requirement for a PMC report within two months, comparative development options, at least three developer bids, execution of the redevelopment agreement within three months, mandatory registered alternative accommodation arrangements and protection for commercial occupants are also important safeguards.
For housing societies, the revised framework makes it increasingly important to maintain proper documentation at every stage. Members should carefully examine the PMC report, comparative proposals, developer bids, redevelopment agreement, approved plans, carpet-area entitlement, bank guarantee and alternative accommodation arrangements before giving their final approval.
Redevelopment is a long-term transaction involving the homes and property rights of society members. A transparent selection process, clearly drafted agreements and strict monitoring of project timelines can help ensure that the benefits promised at the beginning of redevelopment are actually delivered at the time of possession.
