Mumbai redevelopment: Maharashtra bars society committee members, relatives from becoming developers

Mumbai real estate: Maharashtra government has prohibited managing committee members, office-bearers of societies, and their relatives from acting as developers

The Maharashtra government has introduced a new provision in its redevelopment rules prohibiting managing committee members, office-bearers of housing societies, and their relatives from acting as developers for their housing society’s redevelopment projects. The move aims to prevent conflict of interest, curb potential misuse of authority, and ensure greater transparency in the redevelopment of old housing societies.

Mumbai real estate market update: Maharashtra government has introduced a new provision in its redevelopment rules prohibiting managing committee members, office-bearers of housing societies, and their relatives from acting as developers for their housing society’s redevelopment. (Photo for representational purposes only) (Gemini Generated Photo )

The provision is part of the revised guidelines issued by the state’s Cooperation Department under Section 79A of the Maharashtra Cooperative Societies Act. It is relevant to the selection of a developer for the redevelopment of cooperative housing societies. It states that a committee member or office-bearer cannot be the developer or a relative of the developer.

"Committee members or the officer bearers cannot be the developer, and their relatives also cannot be the developer," said the Government Resolution (GR) issued by the Maharashtra government.

Maharashtra government tightens redevelopment rules

The Maharashtra government tightened the redevelopment process for co-operative housing societies, emphasising member participation, time-bound documentation and majority approval in appointing developers.

Under a Government Resolution (GR) issued by the Co-operation Department on September 30, 2026, a redevelopment decision requires a two-thirds quorum and approval from at least 51% of the society’s total members. The GR also permits virtual participation in specified cases, including for senior citizens and members living abroad.

Members living abroad, those who are critically ill, persons with disabilities or those unable to attend for unavoidable reasons can participate through VC/remote systems, the new policy document states.

Further, members voting in favour of redevelopment must provide written consent. The process also requires societies to invite at least three competitive bids from developers, with provisions to extend the deadline if fewer bids are received.

The government mandated that the Development Agreement (DA) be executed within three months, and that the registered Permanent Alternative Accommodation Agreement (PAAA) be signed within three months of the DA’s registration.

Maharashtra government tightens redevelopment rules for housing societies. (HT Graphics)

Maharashtra sets two-year deadline for housing society redevelopment

Along with other conditions, the Maharashtra government introduced a time-bound framework for redeveloping cooperative housing societies, requiring developers to complete projects within two years from the date of the foundation or plinth certificate.

This new provision is part of the state government's revised guidelines issued under Section 79A of the Maharashtra Cooperative Societies Act. It could provide a significant safeguard for members' timelines as they wait to move into their redeveloped homes.

The government order, however, allows the completion period to extend to a maximum of three years in exceptional circumstances. This means the three-year period is not the normal timeline for every redevelopment project but is an exception to the standard two-year completion requirement. The development agreement must also incorporate the relevant terms governing the redevelopment project.

The Maharashtra government said in the GR that: “Depending on the size of the redevelopment project, the period for completing the society’s redevelopment/construction project shall not exceed two years from the date of the first/plinth foundation certificate. In exceptional circumstances, this period shall not exceed three years."