Consumer Connect: Maharashtra’s New Redevelopment Rules Make 51% Physical Presence Mandatory, Raising Hurdles For Mumbai Societies

Q. New GR for redevelopment has permitted online attendance of society members through video conferencing (VC) for special general meeting (SGM) to be conducted for selection of a developer. But it also says that for taking the decision to select the developer, there should be physical presence of at least 51% of total members. We are a society of 150 members where several flat owners have given their flats on rent and are not staying there. As a result, getting at least 51% members physically present for such SGM is going to be extremely difficult. Once members are allowed to attend such SGMs online, why should the government put such a condition, which is difficult to comply with? Our buildings are in very bad condition. What should we do? Is this condition of physical presence of at least 51% members not unreasonable??

—Anand Kulkarni, Borivali (W)

A. Government of Maharashtra, vide its GR dated September 30, has issued guidelines/order under Section 79A of the Maharashtra Cooperative Societies (MCS) Act governing redevelopment of cooperative society buildings. This GR has replaced earlier GR dated 4th July 2019.

The new GR permits society members to attend SGMs for redevelopment through VC. Members abroad, bedridden due to illness, persons with disabilities and those unable to attend in person for unavoidable reasons may attend online. Such attendance shall be counted for the 2/3rd quorum as well as for the 51% majority.

However, it is mandatory that 51% of the total members of the society be physically present at the SGM. This is where the problem lies. Many societies may struggle to ensure physical presence of 51% members, where flat owners live elsewhere or have rented out their flats. In such cases, the redevelopment process could become a non-starter.

If the GR allows online members to count for the 2/3rd quorum and 51% majority required for selection of a developer, how can it simultaneously insist on physical presence of 51% of members? This appears to distinguish unfairly between physical and online participants.

For instance, in a society of 100 members, if 45 are physically present and 25 attend online, 70 members are participating in the meeting. Yet, under the new GR, the SGM cannot proceed because only 45 members are physically present against the mandated 51%. Thus, the 25 online members cannot participate despite their attendance being recognised for quorum and majority.

More importantly, this provision appears to conflict with MCS (Amendment) Rule 106C-13(3)(j), which states: “A resolution for the selection of a developer or a contractor for redevelopment shall be passed by a majority of 51% of the total members of the society including those attending through video-conferencing.”

The new GR effectively excludes members attending through VC if there is no physical presence of 51% members. It is settled law that where regulations or guidelines conflict with the Act or Rules, the latter shall prevail. Therefore, the condition mandating physical presence of 51% members could be open to legal challenge.

Societies facing this difficulty should write to the Principal Secretary, Department of Cooperation, seeking withdrawal of this condition, which could become a stumbling block in redevelopment.

Mumbai Grahak Panchayat (MGP) has sent a representation to the Government urging deletion of this condition.

(Advocate Shirish V Deshpande is chairman, Mumbai Grahak Panchayat. Queries can be sent to him on email: shirish50@yahoo.com)

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Published on: Monday, October 05, 2026, 12:01 PM IST