Why Redevelopment Cannot Be Taken Up In An AGM

BY SATYANARAYAN GAUR

Legal Distinction Between Ownership And Possession Creates A Bar

In the world of housing societies, redevelopment is among the most sensitive and legally binding processes. It demands not just collective decision-making but also strict compliance with statutory laws. A common misconception is that redevelopment can be taken up as an agenda item in the Annual General Meeting (AGM). However, the law makes it clear — this is not permissible.

Ownership vs. Possession: The Legal Divide

The Transfer of Property Act, 1882, under Section 7, states that only a person with full Right, Title, and Interest in a property can transfer it.

• A member-owner of a flat in a Co-operative Housing Society (CHS) holds such rights.
• A provisional member, however, merely possesses the flat and enjoys the right to use it, without ownership or title.

This difference is crucial for redevelopment because:

1. Members must temporarily hand over possession of their flats to the developer.
2. They also permanently transfer development rights, which are treated as property.

Both actions can only be executed by those with ownership rights, not by provisional members.

Provisional Members: Role And Restrictions

The Maharashtra Co-operative Societies (MCS) Amendment Act, 2019, permits provisional members to attend AGMs and Special General Meetings (SGMs). But this attendance does not grant them voting power in redevelopment decisions.

• They only enjoy the right to occupy or use the premises of the deceased member.
• They cannot authorize, assign, or transfer redevelopment rights due to lack of ownership.

Even the 79A Directives explicitly exclude provisional members from redevelopment-related SGMs.

Why Redevelopment Cannot Be Discussed In An AGM

Since AGMs are open to all members — including provisional members — taking up redevelopment in such meetings would violate both the Transfer of Property Act and the 79A Directions.

For this reason, redevelopment must be taken up only in a separately convened SGM, ensuring that only eligible full owners participate in decision-making.

⚖️ Redevelopment is not just an administrative agenda; it involves the transfer of property rights. The mere presence of provisional members creates a legal bar. Thus, redevelopment cannot be discussed or resolved in an AGM.

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