CA . RAMESH S. PRABHU (Chairman) M S W A

CA . RAMESH S. PRABHU(Chairman) M S W A Process & Procedure FOR REDEVELOPMENT By: Adv. B. R. Bornak Panel Advocate - MSWA SEMINAR……………………..RE-DEVELOPMENT

Reason for Redevelopment……Age & Condition of Building

Deterioration of Terrace & Water Tanks

Building Structure Dilapidated • Repairs could be the option • But the favourite choice remains • REDEVELOPMENT • REDEVELOPMENT & • REDEVELOPMENT

In case of selecting Builder, you must be cautious • Common situation faced by innocent flat owner • Lack of cooperation and planning • Being Penny Wise and Pound Foolish

Project will be in danger…..If • Members are divided • Transparency is avoided • Vested Interest & unwanted intervention by member / members • Society behaves Penny wise and Pound Foolish • Greed & Corruption enters

Buyers Beware ! • There were no Laid down guidelines and /or Firm procedures declared • Builders took advantage of the situation offering unrealistic schemes • Many have lost precious life time savings • News papers are covering such factual stories

Govt. of MaharashtraNo. S.G.Y.2007/L.No. 554 /14-C Co-op. Marketing and Textile Dept.Date : 3rd January 2009 COMPLAINTS RECEIVED SUCH AS……. • Members are not taken into confidence. • No Transparency in Tendering process. • Contractor’s Appointment in haphazard manner. • Violation of the provisions of the MCS Act /Rules and Bye-laws. • No Co-ordination between appointed Engineer and Project Consultants. • Non preparation of Feasibility Report. • Not Following Proper procedure in Finalisation of Tender. • No Uniformity in Development Agreement.

The Commissioner for co-operation and Registrar of Co-op. Societies, Maharashtra State, Pune • Appointed a Study Group under the Chairmanship of the Jt. Registrar of Co-op. Societies, CIDCO • The Study Group held discussion with all units in Housing Sector/Experts/Professionals etc. • And Opined for Requirement of definite procedure/Rules/Regulations for Redevelopment of Co-operative Housing Societies’ Buildings • In conclusion the Government u/s 79 (A) of the M.C.S. Act 1960, issued Order known as “Order of Redevelopment of the Co-op Hsg. Societies’ Buildings”

Highlights of The Govt.Order Spl. Gen. Meeting • Most Imp.: M. C. of the Society should be duly elected as per Bye-Laws and Legally Constituted. • SGBM for Redevelopment: Application/requisition along with schemes and suggestions -by at least 1/4thof total members-to the Secretary of the Soc. • Secretary should call:- • MC Meeting within 8 days of the requisition. • SGBM be held within 1 Month of the requisition. • Notice of SGBM: 14 clear days before SGBM. • Acknowledgement be preserved in society’s record.

Duties of M C Before holding SGBM…….. • M C to obtain list of Architects or (PMC) Project Management Consultants who are empanelled with the Government or any local competent Authority. • MC to obtain quotations to prepare Project Report of Redevelopment Work from minimum 5 of above experienced and expert Architects or PMCs.

PROCEEDINGS IN SGBM • To consider members’ requisition and suggestions. • To take Primary decision of Redevelopment. • To appoint Architect/PMC. • To fix scope of work and Terms and Conditions of work of Architect/PMC. • To submit the overview of proposed Redevelopment project of the building

Members to submit suggestions etc.before SGBM • To Submit in writing, inputs, suggestions, recommendations and also names of known experienced and expert Architects/PMCs along with their approval letter minimum 8 days before date of the SGBM.

SGBM-Quorum • Minimum 3/4th of total members of the Soc. • In case of no quorum meeting will be adjourned for 8 days If No Quorum: • If No quorum in Adjourned and Reconvened Meeting:- • It shall be assumed that members have no interest in Redevelopment and • The SGBM shall be dissolved.

If Quorum is Present in SGBM Meeting will consider following business. • Considering members suggestions etc. received. • Primary approval with minimum 3/4th majority, for Redevelopment and Resolution. • approve the Terms and Conditions along with the scope of the work to be carried by Architect/PMC. • To submit tentative program of Redevelopment. • Secretary to circulate Minutes of SGBM within 10 days to members with acknowledgement. • Copy of the minutes to be sent to office of the Registrar.

PMC APPOINTMENT & AGREEMENT • Secretary to issue letter of Appointment to the Architect/PMC, appointed by the SGM, within 15 days of the meeting. • Committee to do Agreement with PMC as per Terms and Conditions approved in SGBM.

PMC Scope of Work • To Carry out survey of Land and Building of soc. • To Seek information regarding the conveyance of society’s Land. • Seek information about available F.S.I. and T.D.R. as per Govt. policy. • Study Rules of the MHADA/S.R.A./Municipal Corporations, as applicable from time to time. • To prepare a feasibility Report taking into account members’ suggestions etc. • To prepare & submit Project Report within 2 months from the date of their appointment.

AFTER RECEIPT OF PROJECT REPORT JOINT MEETING of COMMITTEE & PMC 1) Notice on Notice Board. 2) Before Jt. Meeting Copy of Project Report to be made available in soc. Office for inspection of members . • Members to submit their suggestions etc. Min.8 days before next Committee Meeting. • Suggestions received from the members to be sent to the Architect/PMC for their consideration, 7 days before the Jt. Meeting of MC & PMC/Architect.

AFTER RECEIPT OF PROJECT REPORT JOINT MEETING of COMMITTEE & PMC • Obtain approval from majority towards the submitted Project Report • Fixing date, time & place of next Jt. Meeting to finalise the Draft Tender. • Draft Tender to be finalised in next Jt. Meeting.

Further… • Architect/PMC to prepare provisional draft of the Tender. • In Tender documents, one of the two primary requirements i.e. either carpet area or corpus fund to be kept fixed/Unchangeable. • Tenders to be floated inviting competitive offers. • Members can inform to the well known and experienced Developers known to them. • The Secretary to Publish, list of the Tenders received till the last day, on the Notice Board of the society.

TENDERS OPENING SPL. MEETING OF COMMITTEE: • Secretary, Within 15 days of the last date of the receipt of the Tenders, to call Spl. Meeting of the Committeewhich can be attended by the representatives of the Developers as well as interested members of soc. as observers. • All the received Tenders will be opened in this Spl. Meeting in presence of all the people participating in the meeting. • Architect/PMC will conduct scrutiny of all the Tenders and prepare a comparative chart. • Selection of minimum 5 or all, if total Tenders received are less than 5, to be placed before the SGM. • Concerned Tenderers to be informed accordingly.

SGB…Appointing Authorised Officer by Registrar C. S. • Within 8 days of Spl. Meeting of Committee/Short listing of Tenders:- Society to apply to the Registrar C.S., alongwith List of Members, to appoint Authorised Officer for attending SGBM, to be called for selection of Developer. • The Registrar to appoint Authorised Officer. • Hon. Secretary with prior permission of Authorised Officer should fix day, date, time and venue of the SGM for selection of Developer.

SGM—SELECTION OF DEVELOPER Within one month of the appointment of the Authorised Officer:- Hon. Secretary with prior permission of Authorised Officer should fix day, date, time and venue of the SGM. • Selection of Developer on the basis of experience, caliber, Market status, technical expertise and competitive rates • 14 days Notice of SGM to be hand delivered as well as sent to every member by Registered A.D. Post

SGM—SELECTION OF DEVELOPER • acknowledgements be kept in Society’s Records. • Representative of the Registrar’s Office will ensure presence of Official Representative of the short listed Tenderers. • Quorum for the SBGM will be 3/4th of member present.

IF NO QUORUM • If no quorum:- meeting will be adjourned for 8 days • If No quorum in Adjourned and Reconvened Meeting: • It shall be assumed that members have no interest in Redevelopment and • The SGBM shall be dissolved. • subject cannot be brought before any SGM for its approval for further one year.

MOST IMPORTANT….. • Video Shooting of this SGM is must at the expenses of the society. • Only bonafide members of the society shall be eligible to attend the SGM. • Members would require to carry their individual identification papers to attend the meeting Complete business of selection of Developer (Contractor) and allied matters be carried out in presence of the Authorised Officer.

BUSINESS IN THE SGM FOR SELECTION OF THE DEVELOPER. • Authorised Officer from the office of the Registrar will attend the SGM with the presence of sufficient 3/4th quorum. • Comparative information will be presented regarding the selected Tenders. • Tenders to be presented in serial order. • Selection and finalisation of one Developer, with Terms and Conditions.

BUSINESS IN THE SGM FOR SELECTION OF THE DEVELOPER. • Obtaining Consent from the selected Developer. • Providing information about the further working. • Procedure of inviting application for booking the salable flats/ shops and fix the method to select the applicant.

SELECTION PROCESS…. • 3/4th majority of the members present, shall give in writing their approval • Short listed Developers or their representatives who do not remain present in SGM will be considered as having given their consent for the Redevelopment proposal and further process will be carried. • Managing Committee shall make an Agreement with the Contractor within one month.

Also…… • Agreement should be registered under Registration Act 1908. • Agreement shall have specific mention of the agreed Carpet Area. • Building Plans which are approved by the Municipal Corporation/Competent Authority shall be again placed before the General Body Meeting for information. A member wishing to have a copy of the approved Documents can get the same on his written application. The committee is bound to issue the information on charging a reasonable fee. • Alternate Accommodation by the Developer to the members in the same area or monthly Rent as agreed by members till the Redevelopment project is completed.

After project completion, Admission to New members with Approval of General Body Meeting of the Soc. • Agreement should have mention of Carpet Area. • Flat owners shall vacate their flats only after all Legal Approvals. • Rights of the occupant/possessor shall be protected. • After obtaining OC, allotment of flats- as far as possible at present situation. If required Allotment of Flats by Lottery system and under Video Shooting strictly in the presence of members having valid ID proof.

IMP. POINTS FOR AGREEMENT WITH DEVELOPER • Suggestions from appointed Architect/P M C along with other important issues should be included • Completion period of Redevelopment shall not be more than 2 years and in special cases not more than 3 years in case of any exigencies • Contract terms & conditions given to the Contractor will be non transferable • Agreement between contractor, Architect and society shall have a condition that disputes, if any, on the Redevelopment work shall be settled u/s 91 of the MCS ACT. • No member of the Committee or Office bearer or his relative shall be the Developer. • Developer shall give Bank Guarantee of 20% of project cost.

Finally…….Prime Points for a Successful Venture • IMPLEMENT DEMOCRATIC PROCESS TO CARRY OUT THE PROCEDURE • PROJECT ALWAYS TO BE….. BY THE PEOPLE FOR THE PEOPLE • ORIGINAL MEMBERS TO HAVE FIRST SAY • TRANSPARENCY AND COORDINATION TO BE MAINTAINED. • MAINTAIN CONTROL ON THE PROCESS AND PROCEDURE.

For any further clarifications…. CONTACT: Maharashtra Societies Welfare Association Telefax : 26248565 / 26248589 Tel. : 26705482 A/2, 302, Laram Center, Opp. Rly. Stn., Near Bus Depot, Andheri (West), Mumbai 400058 E-mail : mswa_hsg@yahoo.com

CA . RAMESH S. PRABHU (Chairman) M S W A