Hi Veerendra,
I understand your concerns regarding the redevelopment process of your society in Andheri, Mumbai. Navigating such complex matters can indeed be challenging, and it’s essential to ensure that all procedures align with legal requirements and protect the interests of all members.
a) Is CLOSED tendering for redevelopment legal?
While the Maharashtra Co-operative Societies Act, 1960, and the Maharashtra Co-operative Societies Rules, 1961, do not explicitly prohibit closed tendering, the emphasis is on transparency and fairness in all society dealings. The Government of Maharashtra, through directives issued under Section 79A of the Act, has provided guidelines to ensure that redevelopment projects are conducted transparently and in the best interests of all members. These guidelines advocate for an open and competitive bidding process to select a developer, ensuring that the society receives the best possible terms. Therefore, while closed tendering isn’t explicitly illegal, it may contravene the spirit of transparency and fairness emphasized in these directives.
b) What does the MCS Act say regarding CLOSED and OPEN tendering?
The MCS Act and its accompanying rules stress the importance of democratic functioning, transparency, and member participation in society affairs. Specifically, directives issued under Section 79A empower the State Government to provide guidelines to ensure the proper management of societies. The guidelines issued on 3rd January 2009, for instance, outline a detailed procedure for redevelopment, emphasizing the need for open tendering processes to maintain transparency and fairness. These guidelines suggest that open tendering is the preferred method, as it allows all interested and qualified developers to participate, ensuring the society can compare offers and select the most beneficial proposal.
c) If the resolution for CLOSED tendering has already been passed (I believe it is illegal), what are my legal options to stop closed tendering?
If you believe that the closed tendering process adopted by your society is not in line with the legal provisions and guidelines, you have several avenues to address this: (connect with me to know more about this)
1. File a Complaint with the Deputy Registrar of Co-operative Societies: You can submit a detailed complaint highlighting the lack of transparency and potential deviation from the prescribed guidelines. The Deputy Registrar has the authority to investigate and direct the society to adhere to proper procedures.
2. Approach the Co-operative Court: If internal resolution mechanisms don’t yield results, you can file a dispute in the Co-operative Court. The court can adjudicate on matters where the society’s actions may be deemed prejudicial to the members’ interests.
3. Request a Special General Body Meeting (SGBM): Gather support from other members to requisition an SGBM. In this meeting, you can discuss and potentially overturn the resolution favoring closed tendering.
4. Seek Intervention from the State Co-operative Election Authority: If there are concerns about the legitimacy of the managing committee’s decisions, especially if proper election procedures weren’t followed, you can bring this to the attention of the State Co-operative Election Authority.
5. File a Writ Petition in the High Court: As a last resort, if you believe that the actions of the society are in gross violation of your rights and the statutory provisions, you can approach the High Court seeking appropriate relief.
It’s crucial to act promptly and gather all relevant documents and evidence to support your case. Engaging with other concerned members can also strengthen your position. For further personalized legal assistance tailored to your situation, feel free to reach out to us at adv.vishesh@icloud.com.
