Short Answer

Yes, a cooperative housing society can negotiate for better redevelopment terms, including additional floor area (carpet area), higher corpus funds, or improved amenities, while selecting a developer. These negotiations are permitted under Section 63 and Section 73 of the Gujarat Cooperative Societies Act, 1961, which empower the society’s managing committee and general body to safeguard the collective interests of members during redevelopment.

Detailed Explanation

Under the Gujarat Cooperative Societies Act, 1961, the society’s managing committee and general body of members have the legal authority to evaluate redevelopment proposals and negotiate commercial terms with potential developers before final selection.

As per Section 63, the managing committee is responsible for managing the affairs of the society, including entering into redevelopment or construction agreements.

Further, Section 73 empowers the general body to approve or modify any proposal affecting members’ property rights, including redevelopment offers.

This means the society is not bound to accept the developer’s first proposal — it can demand improved benefits such as:

Higher carpet area per member (e.g., 10–25% extra built-up area).

Increased corpus payment or rent compensation.

Enhanced amenities, such as elevators, parking, security, solar panels, or clubhouse access.

Reduced construction timelines or delay penalties.

Guaranteed possession date and escrow-based payment security.

The process typically involves:

Appointing a Project Management Consultant (PMC):

The PMC prepares a feasibility report and compares multiple developer offers to determine the best possible area benefit.

Inviting Bids or Proposals:

The society issues a tender or invites quotations from 3–5 developers.

Negotiation Rounds:

The committee shortlists top developers and holds negotiation meetings to secure higher benefits.

Final Approval in SGM:

Once the best offer is agreed upon, the proposal must be approved by at least 75% of society members in a Special General Meeting (SGM).

By following this structured approach, the society ensures transparency and maximizes value for all members.

Real-world Scenarios

Scenario 1: A housing society in Ahmedabad receives three redevelopment offers. The committee negotiates with the shortlisted developer, successfully increasing the carpet area offer from 750 sq. ft. to 900 sq. ft. per flat, along with a ₹10 lakh corpus per member.

Scenario 2: A Surat-based society hires a PMC, which helps compare multiple tenders and negotiate better rental compensation during construction.

Scenario 3: A Vadodara society insists on stricter penalty clauses for construction delays and secures a faster delivery commitment in the final agreement.

Reference

Section 63 of the Gujarat Cooperative Societies Act, 1961 – Powers and duties of managing committee: Official PDF

Section 73 of the Gujarat Cooperative Societies Act, 1961 – Powers of general body and committee: Official PDF

Urban Development and Urban Housing Department Redevelopment Guidelines, Government of Gujarat (2019).