Is 79A process Mandatory or not ?

Is 79A process Mandatory or not ?

In last 6 months, Many societies in Mumbai are keen to go for redevelopment are in hurry to appoint developer due to positive impact in sales post COVID and discounts offered by MCGM in premiums.

But every society have question in their mind that whether they should follow 79A process or bypass it as it’s process is lengthy and by the time they complete the process, benefit of discount in premiums will pass away.

Many societies feel that as it is directives and not mandatory they should bypass the procedure as process is time consuming, costlier and difficult to follow each and every step without expert PMC.

Maharashtra Govt has issued circular dated 3rd January 2009 & 4th July 2019 u/s 79A of MCS act 1960. The circular is not mandatory but directives with objective for the society and it’s managing committee to make the process more clear, transparent and smooth functioning of the society.

As per the recent High court order in 2021 with respect to society in Sunder Nagar, Malad the court has ruled the order in favor of the society as it has followed major of the directives u/s 79A and passed resolutions in majority in their various SGMs as per the directives.

The solitary member of the society challenged the process on few points of directives which society had failed to implement but it was ruled out by the court on the ground that majorly the process was followed in clear and transparent manner.

The order also clarified however the process is not mandatory but is important to prove the point that there was no malpractices carried out by the society and it’s managing committee in selection of the developer and it’s appointment.

The order also clarified that the resolutions passed by the SGM does not protect the benefit for the third party. Thus if the third party fails to perform then such resolution passed by SGM in majority is not binding.

Therefore if every society should follow the process to make their redevelopment procedure clear, transparent and smooth functioning. Therefore if society does not follow the process as per directives, then their time, money and energy invested to appoint the developer and do redevelopment of their old and dilapidated building can go in waste.

Following the 79A process is like wearing mask, sanitizing hands, taking vaccination which cannot protect totally from COVID but at least avoid bigger danger of COVID.

To summarize above with famous quote - YOU FOLLOW THE PROCESS

SUCCESS WILL FOLLOW YOU..!!

Nayan Dedhia

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