The order is under Section 79A of the Maharashtra Co-operative Societies Act, 1960. It supersedes the 4 July 2019 resolution and the circulars issued under it. This part is paragraphs 14 to 16.

Group redevelopment runs through the federation that owns the land

Group redevelopment may be carried out in the name of the co-operative housing federation, through the federation that holds ownership rights over the land of the buildings and the common area of the affiliated societies. A federation that does not hold that ownership is not the vehicle this clause describes. Several buildings on one owner’s land is the case this paragraph is written for.

The federation’s meeting is of societies, not of individual members

The Special General Meeting for group redevelopment of the affiliated societies has a quorum of two-thirds of the total number of affiliated member societies. The preliminary decision, once that quorum is complete, must be approved by a majority of the member societies present, being not less than 51 per cent of the total number of affiliated societies. In a federation of 10 societies, that floor is 6 societies. It is a vote of societies, not a headcount of members.

Work cannot start until each society has also said yes, or 60 per cent across all have

Before the work of the affiliated buildings begins, the affiliated societies must have given approval in one of two ways.

Every affiliated society passes a resolution at its own Special General Meeting. Quorum is two-thirds of that society’s members. The yes is a majority of members present, physically and on video call, being not less than 51 per cent of that society’s total members. Each society takes written consent from the members who voted in favour, and sends the resolution and those consents to the federation’s committee.

Or, members holding not less than 60 per cent of the total members of all affiliated societies taken together vote in favour. Each society still takes written consent from those who voted yes, and sends the resolution and the consents to the federation.

One path is society by society, at 51 per cent of each. The other is a combined 60 per cent across the cluster. Neither path lets the federation’s committee start on its own vote. A society that has not cleared its own 51 per cent is not carried along, unless the combined 60 per cent path is the one being used.

After that vote, paragraphs 9 to 13 apply

Once the preliminary decision on group redevelopment is taken, the rest of the procedure follows paragraphs 9 to 13. That is the project report, the tender, the developer selection with the Registrar’s officer in the room, and the agreement, including the bar on vacating before the individual Permanent Alternative Accommodation Agreement is registered. A cluster is not a shorter route.

A fraction is rounded up

While following this order, any fraction in a calculation is rounded up to the next higher whole number. That is why, in a society of 100, a two-thirds quorum of 66.66 is 67. The same rounding applies when the federation counts its societies.

Break the order, and the committee is liable

The order states its purpose. In the appointment of the project management consultant, the project report, the tender, the appointment of the developer and the development agreement, transparency is to be maintained, and the interests of members are not to be prejudiced.

If the order is violated, or if deception, misappropriation, or prejudice to members is found to have been done in collusion in the redevelopment, the responsible office-bearers and committee members are liable to action under Section 79A(3) and Section 78A of the Maharashtra Co-operative Societies Act, 1960.

This is the close of the series. The 4 July 2019 resolution stands superseded. A cluster of societies does not escape the member. The federation votes as societies. Each society still votes, or 60 per cent across all of them do. Then the same rules apply, and a committee that breaks them is answerable under the Act.

Also Read: Society Redevelopment Series Part 6: Members Vacate Flat Only After PAAA Is Registered

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