Q. Our society has called a special general body meeting (SGBM) to select one developer out of three for redeveloping two buildings of our society, which has 100 members. However, the members are split into groups supporting different developers. I want to know what would happen if none of the developers gets the minimum 51% votes?
Pratik Vora, Ghatkopar
Ans. Many societies may face such a situation but are clueless about how to proceed. The Government Resolution (GR) for redevelopment, dated July 4, 2019, was silent on this issue. The latest GR, dated September 30, 2026, amends the aforesaid redevelopment guidelines but has failed to address such a critical voting scenario when no developer manages to secure the mandatory 51% absolute majority.
To understand your case better, let’s call the three competing developers A, B and C. Let’s assume that the SGBM is attended by 70 members, with 55 physically present and 15 attending online. Suppose developer A receives 40 votes, B gets 20 votes and developer C secures 10 votes. In this situation, although A has the most votes, it still lacks the 51% threshold of the total membership, which requires 51 votes.
The existing regulatory guidelines provide no solution for this stalemate. Having noted the absence of a tie-breaker protocol or rule for the selection of the developer, Mumbai Grahak Panchayat, a leading voluntary consumer organisation, has proposed a solution to the state cooperative department. To resolve such deadlocks, the said GR needs to be amended to include a clear, multi-stage voting process within the same SGBM.
If no developer secures a 51% majority in the initial vote, the lowest-ranked candidate (developer C) should be eliminated. A second round of voting should immediately take place between the top two candidates (developers A and B). Now, let’s take the argument further and consider that neither developer achieves a clear majority even in the second round of voting. For instance, if the vote splits 45 to A and 25 to B, the guidelines should mandate that the contract be awarded to the developer who secures the highest number of votes in this final round. In this case, it would be developer A.
Let’s be hopeful that the government accepts the proposal and provides for the same by way of an amendment. Such an amendment will be helpful in resolving this complex issue faced by many societies.
The questions are answered by Sharmila Ranade, a legal expert associated with Mumbai Grahak Panchayat. The questions, in brief, may be sent to mpanchayat@gmail.com
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