• Redevelopment of multiple societies together

Hi We are 4 Societies intend to Go for Redevelopment Together. All 4 Societies have Different Committees and their Respective Administrative Management. But Now Buildings are getting Dialapated and Substantial FSI is available and we can go for Redevelopment. 

But there are Few Legal Challenges 

1) Convenence Deed is Single Joint Convenience of all 4 Societies and Independent Societies arre Confused wether to Jointly Go for Redevelopment or Go Individually.

2) If Decision is Jointly then How Can Individual Societies do Joint Redevelopment Since it would require Amalgamation of Land and Societies and a Single Governing Body Like Federation or Association 

3) If we create a Single Redevelopment Committee then Should We register it as Association or Federation and that Committee would drive Redevelopment of all Societies.

4) To Approach PMC get The Feasibility report and Hold Negotiations with Developers we need to Excersize control over all Societies Jointly and Submit Joint Proposals since after Builder Takes over all these Societies would go and a New One would take over including the New Members.

5) People are WillIng per Section 79 Compliance all 4 Societies are unilaterally agreeing for Redevelopment but Approach as Single Entity which is Registered or Let Individual Societies decide in their AGMs etc and Negotiate on their own is not Clear.

Needed Advice on Approach Form Association or Federation registrar with Charity Commission and Then adding all Powers to that Body which would have Members of all Societies.
Asked 5 months ago in Property Law
Religion: Christian

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10 Answers

You should jointly go in for redevelopment as one conveyance has been executed fir all 4 societies 

 

2) appoint a single builder for cluster redevelopment 

 

3) all 4 societies need to call EGM ,get majority approval for cluster redevelopment,appoint one builder 

 

4) amalgamation of 4 societies has to be done 

Ajay Sethi
Advocate, Mumbai
99754 Answers
8141 Consultations

You can first register an association of societies if you want to go jointly.

Need to get the conveyance in the said matter from all societies the builder can help you in the same

Prashant Nayak
Advocate, Mumbai
34492 Answers
248 Consultations

1. prima facie, if an apex or federal society is formed, it will require minimum number of members/societies. I dont think that an apex society can be formed with only 4 members [i.e. the 4 societies]

2. but for any builder it would be economically feasible to construct one single rehab building which can house the members of all the 4 societies. This will avoid sub-division of the land. There is no need for any amalgamation since the conveyance is jointly in favour of the 4 societies. That means the 4 societies have undivided share in the land since there is no separate conveyance in favour of each society. 

3. the MC of each society can appoint 1 or 2 representative to be member of the redevelopment committee which will have the representatives from each society. 

4. a feasibility report must be obtained first from a reputed valuer or PMC to ascertain the true developmental potential of the land 

5. i am not able to understand how the Charity Commissioner is involved here?

Yusuf Rampurawala
Advocate, Mumbai
7896 Answers
79 Consultations

Single Conveyance = Joint Ownership:
Since the land is jointly conveyed to all societies, any redevelopment must be a joint process, unless partition or segregation of land is done (which is complex and usually not feasible).

  1. Need for Common Governing Body:
    To act collectively, societies should form a Federation of Housing Societies under Section 4(2) of the Maharashtra Co-operative Societies Act, 1960, registered with the Registrar of Co-operative Societies.
  2. Formation of Federation:

    • Each society should pass a resolution in its General Body approving:

      • Joint redevelopment.
      • Formation and joining of a Federation.

    • The Federation will act as the single legal entity to:

      • Appoint PMC.
      • Obtain feasibility reports.
      • Float tenders.
      • Finalize and contract with the developer.
      • Coordinate with PMC/local authorities.
      • Receive and manage redevelopment funds.

  1. After Redevelopment:
    A new co-operative housing society or apartment association can be formed to manage the redeveloped property and include new members.

Joint redevelopment is legally possible and advisable. The societies should register a Federation, vest it with powers for redevelopment, and proceed collectively. This ensures legal clarity, negotiation strength, administrative efficiency, and proper protection of members’ rights.

Let us know if you require:

  • Draft resolutions,
  • Bye-laws of the Federation,
  • Registration assistance.

In case you need my assistance in the matter I can be contacted on 

Yuganshu Sharma
Advocate, Delhi
943 Answers
2 Consultations

  1. Since the land is under a single joint conveyance, redevelopment should be done jointly, not individually.

  2. To proceed legally and efficiently, form a Registered Federation or Association under the Societies Registration Act or Maharashtra Co-operative Societies Act.

  3. This new body will:

    • Represent all 4 societies

    • Handle PMC approvals, feasibility study, and developer negotiation

    • Sign the development agreement on behalf of all societies

    • Manage transition to the new society post-redevelopment

  4. Pass Section 79-A compliant resolutions in each society’s AGM to authorize participation and delegate powers to the new federation.

  5. Draft clear bylaws and representation structure in the federation to ensure fair decision-making.

Conclusion: Form a Registered Federation, empower it via resolutions from each society, and proceed as a single entity for smoother legal, financial, and administrative execution.

 

Shubham Goyal
Advocate, Delhi
2054 Answers
14 Consultations

Four housing societies with a single conveyance deed for all can opt for either joint redevelopment or individual redevelopment. 

The decision depends on factors like member agreement, feasibility, and potential benefits. 

Joint redevelopment requires amalgamation into a single entity, while individual redevelopment allows them to proceed separately. 

A clear agreement outlining the terms of joint redevelopment, including FSI (Floor Space Index) usage, is crucial.

Disputes over FSI allocation can arise in joint redevelopment, requiring careful negotiation and agreement.

Alternately each society can proceed with its own redevelopment project, negotiating with developers independently.

Individual redevelopment can potentially be faster as it avoids the complexities of joint decision-making and amalgamation. 

If your society is not a registered body, you can get it registered by producing the copy of the conveyance deed in which there is a mention about your society too. 

A significant majority of members in each society need to agree on the chosen redevelopment approach (joint or individual). 

The legal implications of both approaches should be understood, including the need for proper documentation (conveyance deed, agreements, etc.). 

However, while a single conveyance deed for multiple societies can be a challenge, it doesn't preclude either joint or individual redevelopment. The best approach depends on the specific circumstances and the consensus among the societies.

T Kalaiselvan
Advocate, Vellore
89953 Answers
2490 Consultations

Hello, 

  1. As the conveyance is joint and single it would be advisable to advisable to go for a joint redevelopment as that can lead to a common bargain with the developer and secure the best deal. 
  2. Even though the development is jointly done, the individual Society can enter into separate Development Agreement with the builder to avoid complication and avoid any restructuring.
  3. You can either do that or as suggested reach Society can have its own Redevelopment committee. 
  4. It doesn't have to be so, the individual Committees can deal with the PMC and the Builder. Additionally it is possible to form a coordinating committee consisting of select members from each committee for common good.
  5. The answer is at point No.1
  6. You need to schedule a meeting with a lawyer with select members from Society to draw up a detailed plan.

S J Mathew
Advocate, Mumbai
3619 Answers
175 Consultations

Dear Sir/Madam,

You are suggested that an association of federation is formed form the members of all the 4 socieities, thus having representation of all and then give powers to this association for doing the needful of all the societies together. 

Ganesh Singh
Advocate, New Delhi
7169 Answers
16 Consultations

Dear Client,

The Factual scenario in the present instance is quite complicated. Generally, when multiple housing societies hold land under a joint conveyance deed, redevelopment is required to be undertaken jointly. Hence, a single housing society cannot unilaterally redevelop a portion of undivided property. The best way to proceed with this, is to form a registration federation with the representatives of the housing societies, and jointly proceed with PMC and the developers.

Legal principle: Section 11 of the Maharashtra Co-operative societies Act, 1960 allows for the formation of a federation of societies to manage common affairs.

I hope this answer helps. In case of future queries, please feel free to contact us. Thank you.

Anik Miu
Advocate, Bangalore
11005 Answers
125 Consultations

1. Since there is Single Conveyance Deed i.e. all societies share ownership in the land parcel. Hence, individual redevelopment will be complex and inadvisable (land needs to be physically partitioned).  

2. For Joint Redevelopment, it is important that there is a unified body to represent and negotiate on behalf of all the societies.

Recommended Approach:

1. Form a Interim Joint Redevelopment Committee: Representation from all the 4 societies to manage discussions, feasibility study and to build consensus on form of formal registration i.e. Federation or Association.

2. Federation or Association: Federation will be the preferred option (Association is simpler but more suited for temporary arrangement).

All 4 societies will be members of this Federation, and will have legal entity and power to act on behalf of all. (Federation to be registered with Registrar of Co-operative Societies).

3. Delegate power to the Federation: Each society needs to pass resolution to approve the joint redevelopment, formation of federation, and authorize federation to act on behalf of them in matters of the redevelopment.

4. Joint Actions: Appoint PMC/architect for feasibility report.


Float joint tenders through the Federation.


Hold joint meeting with residents of all the societies.

5. Post-Redevelopment:


Dissolve/Merge existing societies into a single society.


New members to be integrated under the new society formed.

 

Summary:

Joint Redevelopment to be taken by formation of a Federation, with all 4 societies as the members of the Federation. Federation to act on behalf of the societies and post-redevelopment, existing societies to be merged into a single society.

Devika Mehra
Advocate, New Delhi
44 Answers

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