Society should go in for re tendering 

2) Calling for a fresh tender ensures transparency and fairness in the selection process, preventing any perception of favoritism or lack of competition.

3) If a PMC has been appointed, they may also provide recommendations on whether to re-tender to ensure the best outcome for the society 

4) For the Tenders to be competitive, it is essential that minimum 3 Tenders should be received.place the tender received before AGM for decision 

Under Section 79A of the MCS Act (via Government Resolutions, notably from 2009 and 2019), housing societies must carry out redevelopment through a competitive tendering process:

A minimum of three tenders should be invited. If fewer than three are received, the timeline for tendering must be extended—once, and then a second time—before using whatever tenders have been received. 

The Project Management Consultant (PMC), along with the Managing Committee, reviews the tenders, produces a comparative chart, and then shortlists them for presentation at a Special General Body Meeting (SGBM). 

The process must be transparent: publishing a list of received tenders, allowing bidder participation, video recording the SGBM, and involving a Registrar-authorized officer. 

No it has have atleast 3 quotations amongst them one can be finalised to keep transparency and unbiased approach 

- Under Section 79A of the MCS Act, there is direction that minimum of three tenders to ensure competitiveness, and if fewer are received, and the society must first extend the deadline by one week.

- Further, if there is less than three tenders, proceed with those available.

- Further, However, the Mumbai High Court in the matter of M/s Maya Developers vs Neelam R. Thakkar & Ors. held that these Section 79A directions are obligatory, not mandatory.

- However, the Supreme Court in the matter of In the matter of M/s Ravindra Nath vs. Municipal Corporation of Delhi (2024), held that even where tender rules allowed award to a sole valid bidder, the court held authorities can still cancel on public interest grounds to preserve competitiveness.

There is no restriction as such against a single tender and society going for that tender 

In a given case the society may receive multiple tenders

One builder may offer better terms but his track record may not be good. Whereas the other may offer less lucrative terms but he is prompt at delivering his promises 

So it all depends on the collective decision taken by the general body of the society in the SGBM guided by the society's PMC. If the builder whose tender is received has offered good terms and his track record is also good then even though only a single tender is received the society can still decide to go with him by majority 

So it's not that there would be any illegality on the part of the society to go with the builder whose sole bid is received. It all depends on the collective wisdom of the society 

If upon negotiations there is no mutual agreement with the builder whose sole bid is received , nothing prevents the society from doing the tendering procedure again

Under the guidelines framed under Section 79A of the Maharashtra Cooperative Societies Act, the standard rule is that at least three tenders should be received for society redevelopment, to ensure competitiveness and transparency. If fewer than three tenders are received, the society must grant at least one extension of one week, and if still fewer than three are received, a second extension of one week should be given. Only after these repeated opportunities, if three or more tenders are still not received, can the society consider whatever tenders have been received—even a single tender—at the Special General Meeting for approval.

This staged process is mandatory for transparency but, if despite genuine effort, only one bid is received after the required extensions, the law permits the society to proceed, provided the selection is done with proper scrutiny and the process is well-documented and ratified by the General Body in the presence of an Authorized Officer from the Registrar’s office. This is also reflected in government circulars and redevelopment guidelines for Mumbai societies.

Courts and authorities emphasize transparency, member consent, and documentation. The society is not bound to retender indefinitely, but must strictly follow the minimum extension protocol, and reasons for accepting a single tender should be recorded. There are also Supreme Court precedents upholding the right of a public body to re-tender for best public interest and transparency, but these generally apply where rules are circumvented or the process is not bona fide.

If you need any more help with drafting resolutions or for scrutiny of the process to shield against later legal challenge, professional legal assistance is recommended.

In State Of Jharkhand & Ors vs M/S Cwe-Soma Consortium SC has laid down detailed guidelines for acceptance of single tender. Such single tender has to be accepted only if there is proper justification for its acceptance. Though the case relates to government tenders, the principles laid down can also be applied to private tenders by society. 

Under the 4 July 2019 GR issued u/s 79A MCS Act, a society must try for at least 3 bids. If only one comes, two short extensions should be given. If still no more bids, that single tender can be placed before the SGM for members’ approval.

Bombay High Court has held that 79A guidelines are directory, not mandatory—so one bid is valid if due process (extensions, publicity, SGM approval) is followed. Retendering is not compulsory unless procedure was unfair or irregular.

A society should not proceed with only one tender, as Section 79A MCS Rules require plural “tenders” for transparency and fair choice. If only one bid is received, best practice (and followed in case law/registrar guidelines) is to re-invite/retender. Proceeding with a single tender risks challenge before Co-op Registrar / RERA / courts as arbitrary or against government directives.

Dear Client, 

You have sought advice on whether your Society can proceed with redevelopment when only a single tender has been received, provided that Section 79A Guidelines under the MCS Act use the plural word “tenders”.

- THE REQUIREMENT OF MULTIPLE TENDERS 

The Government Resolutions (GRs) issued under Section 79A recommend that at least three tenders should be received. If fewer tenders are received, the Society is required to extend the tender period, first by 7 days, and then once again if necessary.

- IF ONLY ONE TENDER REMAINS

If even after these extensions only a single tender is received, the Society is not legally bound to retender again indefinitely. At that stage, the Society may proceed with the single tender, provided that:

• The Project Management Consultant (PMC) evaluates and certifies the bid,
• The process is transparent and documented, and
• The decision is ratified in a Special General Body Meeting (SGBM) with the Registrar’s representative present

-JUDICIAL VIEW OF SECTION 79A

The Bombay High Court has consistently held that GRs under Section 79A are directory, not mandatory. This means that non-compliance with the exact number of tenders does not automatically invalidate the redevelopment process.

The court ruled in Vilas Vishnu Jadhav & Anr. v. State of Maharashtra (2024) that the directives issued under Section 79A are intended to promote transparency and should not be regarded as rigid requirements that must be adhered to.

Hence, Your Society can legally proceed with the single tender once it has demonstrated compliance with the extension process and ensured transparency. However, to have protection against any allegations of bias or lack of fairness, your society may document every step carefully. 

I hope this answer helps. For further queries, please do not hesitate to contact us. 

Dear Sir,

Your concern is valid. Under the Government of Maharashtra directions issued under Section 79A of the Maharashtra Cooperative Societies Act, 1960 (guidelines on redevelopment of housing societies), the tendering process is intended to ensure transparency and competitiveness. The guidelines specifically use the term “tenders” (plural), which has been judicially interpreted to mean that the process must allow for fair comparison and choice, not a monopoly.

If only one tender is received, the society is not automatically bound to accept it. In fact, several directives from the Cooperative Department and circulars issued under Section 79A emphasise that societies should strive for multiple tenders to avoid allegations of bias, collusion, or lack of transparency.

While there is no specific statute barring acceptance of a single tender, the safer and legally sustainable course is to re-tender so that members cannot later challenge the process as arbitrary. Courts in Maharashtra (for instance, in matters before the Bombay High Court concerning redevelopment disputes) have repeatedly stressed the need for fairness and adherence to the spirit of the Section 79A guidelines. Any departure from these norms can be struck down as mala fide or against cooperative principles.

Conclusion: If only one bid is received, it is prudent for the society to invite fresh tenders rather than proceed, as proceeding on a single bid may expose the society and its office bearers to legal challenges by dissenting members before the Cooperative Court, the Registrar, or even the High Court.

Regards
Adv. Aman Verma
Legal Corridor

• No, the society should not proceed with only one tender.

• Under Section 79A Govt. Guidelines, the purpose is plural tenders, i.e., competitive bidding.

• If only one tender is received, the society is expected to re-tender.

• Courts (Bombay High Court, e.g., Madhuvihar case) have stressed that redevelopment without following transparent multi-tender process is invalid and challengeable.

for more details you can take my consultation

regards,

Adv. Arunkumar Khedia

(Bombay High Court)

Hello, thanks for your question. When only a single tender is received during the redevelopment process, it does raise concerns about monopoly and lack of competition.

Section 79A of the Maharashtra Cooperative Societies Act uses the term "tenders" in plural, indicating that ideally multiple bids should be invited. If only one tender is received, the society generally has the option to retender to ensure transparency and get the best terms for members.

There are several court rulings where retendering was directed to protect society members’ interests and avoid monopolies. However, if the single tender meets all criteria and is approved unanimously with member consent, societies sometimes proceed with it.