Housing society redevelopment, step by step (s.79A, 2019)

Redevelopment is the biggest decision a co-operative housing society will ever take. Members give up their homes for two or three years on the strength of one agreement. That is why the State Government has laid down a fixed procedure under section 79A of the MCS Act. The current directive is the Government Resolution of 4 July 2019, which replaced the 2009 directive.

The steps below follow the official Marathi GR clause by clause. Some older summaries still quote the 2009 rules, such as a one-quarter requisition. Those rules no longer apply.

Step 1: requisition by at least one-fifth of members

The process starts with a written requisition from not less than one-fifth (1/5) of the members asking for a special general body meeting (SGM) on redevelopment (cl. 5). Fractions are rounded up throughout the directive (cl. 20).

The managing committee must take note of the requisition within 8 days.
The SGM must be held within 2 months, on 14 days’ notice (cl. 5).
Members may send suggestions up to 8 days before the SGM (cl. 9).

The Rules now add their own layer. Rule 106C-13(3)(i), in force since 22 June 2026, requires 14 clear days’ notice for a redevelopment SGM. It also requires the SGM to be held in the presence of the Registrar’s representative and to be video recorded.

Step 2: the first SGM, with a 2/3 quorum and 51% of total membership

This meeting decides whether to go ahead with redevelopment at all.

Quorum: two-thirds of the total membership (cl. 10(a)).
Decision: the resolution needs the support of 51% of the total membership, not just 51% of those present. The consent of absent members does not count.
Written consent: members who vote in favour give their consent in writing (cl. 12).
No quorum: the SGM is reconvened within one month on 7 days’ notice. If it fails again, the subject cannot be raised for three months.

The minutes go to every member and to the Registrar within 7 days (cl. 11). Every committee meeting and SGM on redevelopment must be reported to the Registrar within 15 days (cl. 7).

Step 3: appoint the architect or project management consultant (PMC)

The society chooses its architect or project management consultant from at least three quotations, taken from the Government or local-authority panel (cl. 5). The appointment letter is issued within 30 days (cl. 13).

The PMC prepares a project report within two months of appointment (cl. 14(e)). The report is open for members’ inspection, and suggestions are due at least 7 days before the committee meeting that finalises it (cl. 15).

Step 4: invite tenders

Once the project report is final, tenders are invited from developers.
They are opened at a committee meeting within 15 days of the last date, and at least three tenders are needed (cl. 16).
If fewer come in, the date is extended: first by at least a week, then by one more week. After that, whatever has been received goes to the SGM.

Step 5: authorised officer and the developer-selection SGM

The committee applies to the Registrar within 7 days for an authorised officer, enclosing the list of members (cl. 17). The SGM to select the developer is held within one month. It is held in the officer’s presence and video recorded at the society’s cost.

The developer must have at least one project registered with MahaRERA.
Under Rule 106C-13(3)(j), the resolution selecting a developer needs 51% of the total members, counting those attending by video conference.
No committee member, and no relative of one, may be the developer (cl. 18(12)).
An administrator or authorised officer cannot take the redevelopment decision in place of the members (cl. 4).

Step 6: development agreement, bank guarantee and PAAA

The development agreement must be signed and registered within three months of selection (cl. 18).
The developer gives a bank guarantee of 20% of the total project cost (cl. 18(2)).
Development rights cannot be transferred to anyone else (cl. 18(7)).
Each member signs a registered Permanent Alternate Accommodation Agreement (PAAA) with the developer.
Members vacate only after all sanctions are obtained and the PAAA is registered (cl. 18(8)).
Completion is due within two years of the plinth or first certificate, or three years in exceptional cases (cl. 18(1)).

New flats are allotted by the existing floor position where possible. If a draw is needed, it is held before the Registrar’s representative and video recorded (cl. 18(11)). Disputes go to the Co-operative Court under s.91 (cl. 18(10)).

Redevelopment checklist for the committee

Requisition signed by at least 1/5 of members, placed before the committee within 8 days.
SGM on 14 clear days’ notice within 2 months; Registrar’s representative present; video recorded.
Quorum of 2/3 and a resolution backed by 51% of total members; written consents collected.
Minutes to all members and the Registrar within 7 days; every meeting reported within 15 days.
PMC chosen from 3+ panel quotations; project report within 2 months, open to members.
At least 3 tenders opened at a committee meeting; extensions recorded.
Authorised officer requested within 7 days; selection SGM within a month, recorded.
Agreement registered within 3 months; 20% bank guarantee in hand.
Registered PAAA for every member and all sanctions before anyone vacates.

What the law says

MCS Act s.79A and the GR of 4 July 2019 (Co-operation Department): the binding procedure. Clauses 4, 5, 7, 9–18 and 20 are cited above.
Rule 106C-13(3)(i)–(j) of the MCS (Amendment) Rules 2026: 14 clear days’ notice, 2/3 quorum, the Registrar’s representative, video recording, and 51% of total members for selecting the developer.
Draft Model Bye-laws 2026, dBL 150–161 (draft only): due diligence on title, conveyance and records; a feasibility report comparing repair, redevelopment and self-redevelopment before any general-body decision; separate books for self-redevelopment; and the members’ right to inspect every record. dBL 161 says the s.79A directive prevails.

Local development-control rules and your society’s own bye-laws may add further conditions. Take independent legal and technical advice before signing anything.

More redevelopment questions are answered on the redevelopment FAQ page.

Sources

General information, not legal advice. Your society's registered bye-laws may differ; for a dispute or a decision with legal or financial consequences, consult the Registrar's office, an advocate or a chartered accountant.