Maharashtra tightens housing redevelopment rules: three bids, registered rehab deals, two-year deadline

Maharashtra has revised its redevelopment framework, requiring cooperative housing societies to obtain a project management consultant report within two months and evaluate at least three developer bids. Developers must sign agreements within three months, with projects completed in two years. Regis

MUMBAI: Maharashtra on Wednesday revised its redevelopment framework, shifting the focus from merely approving projects to tracking what members receive at every stage. A government resolution from the state cooperatives department requires societies to obtain a project management consultant (PMC) report comparing different permissible development options within two months. At least three developer bids are mandatory, with extensions required if fewer are received.

Developers must sign agreements within three months of selection, and projects are to be completed within two years from the foundation or plinth certificate stage, barring exceptional extensions of up to three years. The order replaces the 2019 redevelopment framework and introduces several operational safeguards beyond the voting and meeting provisions announced in June.

Members can inspect key redevelopment records free of charge, including notices, minutes, video recordings, the PMC report, tender documents, bids, comparative statements and the draft development agreement. Copies are available on payment of a prescribed fee. The PMC must examine land title, development potential, FSI or TDR, parking, open spaces and residential or commercial requirements, and prepare separate project reports for each applicable development scheme.

Registered permanent alternative accommodation agreements are mandatory before residents shift. Individual agreements must be executed within three months of the redevelopment agreement's registration. For shops and commercial premises, vacation can take place only after required legal approvals and the registration of the permanent alternative accommodation agreement, with occupants' rights remaining intact.

Post-redevelopment, new flat or shop purchasers' membership and share-certificate applications must be decided within three months of possession. Flat allotment should follow the existing floor position as far as possible. If a lottery is necessary, it must be conducted after completion and video-recorded, with minutes, the recording and a certified allotment list submitted to the Registrar within a month.

The order also bars a managing committee member, office-bearer or their relative from becoming the developer, and requires approved building plans to be placed before the general body.