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Redevelopment - 79A Applicability & Risk Opinion

Overview

Redevelopment of a Co-operative Housing Society in Maharashtra is governed by the Directive issued under Section 79(A) of the Maharashtra Co-operative Societies Act, 1960 (2009/2019). This directive is mandatory and legally binding on all societies undertaking redevelopment.

The directive was introduced to address frequent complaints relating to lack of transparency, arbitrary appointment of developers, inadequate member consent, and non-compliance with statutory procedures. Any deviation from this framework exposes the Society, Managing Committee, and Developer to serious legal, regulatory, and commercial risks, including injunctions, cancellation of resolutions, and Registrar intervention.

Our service strategy ensures that the redevelopment process is fully compliant with Section 79(A), legally defensible, and structured to withstand member disputes, regulatory scrutiny, and court challenges.

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What We Do

We act as Section 79(A) Compliance & Redevelopment Risk Advisors, providing strategic, procedural, and legal oversight at every critical stage of redevelopment.

1. Statutory & Process Advisory (Pre-Redevelopment)

  • Advise on applicability and mandatory requirements of Section 79(A)

  • Guide the Managing Committee on lawful initiation of redevelopment

  • Structure Special General Body Meetings (SGMs) in compliance with statutory quorum and voting thresholds

  • Review and advise on notices, agendas, resolutions, and minutes

2. Architect / PMC Appointment Advisory

  • Advise on statutory requirements for appointment of Architects / PMCs from approved Government or Local Authority panels

  • Review scope of work to ensure alignment with obligations under the directive

  • Provide process oversight during selection and approval by General Body

3. Tendering & Developer Selection Advisory

  • Advise on transparent and uniform tender frameworks

  • Review comparative statements and bid evaluation methodology

  • Coordinate procedural compliance with Registrar’s office for appointment of Authorized Officer

  • Provide oversight during Special General Body Meeting for final developer selection, ensuring statutory formalities are followed

4. Agreement & Safeguard Advisory

  • Review and advise on Development Agreements for compliance with Section 79(A)

  • Ensure inclusion of mandatory safeguards such as:

    • Bank Guarantee requirements

    • Completion timelines

    • Transit accommodation obligations

    • Non-transferability of development rights

  • Advise on registration, documentation, and risk allocation

5. Ongoing Compliance & Dispute Advisory

  • Provide advisory support during execution phase to ensure continuing statutory compliance

  • Guide the Society in handling member grievances and objections

  • Advise on dispute resolution mechanisms under Section 91 of the Act

  • Assist in maintaining regulator-ready compliance records

How This Helps the Stakeholder

  • 1. Legal Risk Mitigation

  • Protects the redevelopment from injunctions, stays, and writ petitions

  • Ensures resolutions and agreements withstand judicial and Registrar scrutiny

  • 2. Regulatory Protection

  • Prevents cancellation of approvals by the Registrar

  • Shields the Managing Committee from allegations of misconduct or supersession

  • 3. Member Confidence & Transparency

  • Builds trust through democratic decision-making and documented processes

  • Reduces internal disputes and allegations of favouritism

  • 4. Developer & Lender Comfort

  • Creates a legally sound framework acceptable to financiers and investors

  • Reduces project delays caused by compliance failures

  • 5. Project Stability

  • Ensures time-bound execution with enforceable safeguards

  • Minimises mid-project disruptions and escalation of disputes

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