Real Estate · Redevelopment
Redevelopment due diligence for housing societies
For most members, redevelopment is the largest financial decision they will ever take together. The offer on paper matters less than the developer's ability to finish the building. Due diligence is how a society checks that before it votes.
What we review for a society
- Developer financials — audited statements for the last three years, net worth, borrowings and liabilities on other projects.
- Track record — completed projects, whether they were delivered on time and received occupation certificates.
- MahaRERA record — registered projects, quarterly updates and buyer complaints.
- Litigation and disputes involving the developer and its group entities.
- The signing entity — which company will actually build, and whether it has the means to.
- Comparison of offers on a common basis — carpet area, rent, corpus, timelines, bank guarantee and penalty clauses.
- GST and income-tax implications of the development agreement, corpus and rent for the society and its members.
The Section 79A process in brief
Redevelopment of co-operative housing societies in Maharashtra follows the directions issued under Section 79A of the Maharashtra Co-operative Societies Act, 1960, dated 4 July 2019. Key requirements include:
| Step | Requirement |
|---|---|
| Decision to redevelop | Approval of at least 51% of the total membership in a special general meeting |
| Project management consultant | Chosen from at least three quotations |
| Tenders | At least three; the deadline is extended if fewer are received |
| Developer selection | In a general meeting attended by the Registrar's authorised officer, with video recording |
| Bank guarantee | 20% of the total value of the redevelopment project |
| Completion | Two years from the first construction permission; up to three in exceptional cases |
| Development rights | Non-transferable |
Related reading
Developers' MahaRERA disclosures are part of every review — see our note on MahaRERA compliance and what flat buyers should check before paying.
Frequently asked questions
How many members must approve redevelopment?
Is a bank guarantee required from the developer?
What does due diligence on a developer cover?
For queries, WhatsApp +91 98707 88610, call 022 4506 6673, or write to cakaminivarma@gmail.com.
This page is general information on the law as it stood when written, not professional advice for any specific case. Rules, forms and due dates change; check the current position before acting.