Redevelopment Steps

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P.P. What is the future for the redevelopment of co-operative housing societies?

A.S. The future of redevelopment in Mumbai city is very bright since there are constraints on the availability of open land within the city and suburban limits coupled with fast growing demand for houses and shortage of housing stock. Besides there are no. of other reasons.

There are thousands of buildings which are in bad shape and dilapidated due to their age, atmospheric wear and tear and other reasons. They have reached a stage where it is not possible to carry out structural repairs and rehabilitation as the same are not economically viable and may not be guaranteed for more extended service life.
Redevelopment of such old building has become a necessity since many buildings collapse each year, killing or injuring no.
of people.

The other reason being the requirement of an extra space by the society members due to increase in the no. of family members.

Also the Government has allowed incentive FSI for carrying out redevelopment schemes in the city as well as in suburbs.

P.P. Does the process take too much time?

A.S. The redevelopment process takes time which includes the following Stages.

1 Consent of society members
2 Extending EOI (Expression of Interest) by society
3 Furnishing documents to developer
4 Addressing society problems
5 Appointing consultants
6 Tendering/ short listing
7 Selection of best option
8 Extending LOI( Letter of Intent)
9 Deal structuring
10 Municipal approvals
11 Execution of DA & POA
12 Shifting to Alternate accommodation
13 Demolition & re-construction
14 Granting possession
15 Admission of new purchaser as the members of Society
16 Final handing over to the society.

Since The redevelopment work is of common interest, it requires the major decisions to be taken by the society with the consent of general body. Necessary resolutions should be approved in the general body meetings.

Recently the government of Maharashtra has issued specific guidelines to streamline the process of redevelopment so that the problems in the redevelopment can be eliminated at the initial stage resulting in the reduction of the time required for the redevelopment process.

P.P. What are the remedies with society if a builder does not keep up the promise?

A.S. The society should hire a professional and competent advocate, should be careful in drafting the redevelopment agreement and should not leave the same to the developer. The terms and conditions of the agreement should legally and practically take care of the in terests of the society and each of its members, and should ensure that a default by the other party is unfavourable to him only.
While drafting, one needs to visualise every possible setback and should provide answers and remedies against possible eventualities so that the builder’s interest in completing the project continues till the end.

The bank guarantee should be drafted simultaneously, along with the redevelopment agreement. The draft of the bank guarantee should be simple and not tied up with conditions. it should state that except calamities like floods, earthquakes or a war, the reconstruction will be completed in the specific time, or at the very least, within the grace period.
Failing this, the guarantee would be invocable. The society should take PDC for the future rent and compensation at the time of vacating.

To ensure that the builder completes the reconstruction project, he should be permitted to give possession of his sell portion only after offering possession to the existing flat owners.

The development agreement should be properly stamped and registered as an unstamped and unregistered document is not enforceable in law. Every detail pertaining to the construction specifications, construction and material, amenities should be specified in the redevelopment pact. Anything that is vague will work against the interest of society members. The DA should have a provision of arbitration.

TDR should be loaded in the name of society before vacating of the premises but after execution of the development agreement and consent of all members in respect of the development agreement and the proposed plans. It is one of the steps to safeguard interests of the society. Stamp duty provisions relating to TDR transactions need to be complied with.

The society should appoint an architect or engineer for the verification of their carpet area and supervise the quality of construction, amenities promised by developer of the proposed building. The architect should physically verify the area once the typical floor slab is casted.

The approved plans should be submitted to the society within specific period after approval and to the architect to verify periodically that the construction activities are carried out as per the approved plans.

P.P. What are the advantages of Redevelopment?

A.S. There are many advantages. for various bodies. For people, for government and for the local Municipal Corporations as well.

The advantages for the developers are that, There is no huge investment regarding the TDR of such properties unlike new plot development, these projects are always with clear title.

Though the time frame for the agreement procedure from the occupants or society members is more and the matter also requires frequent dealings with lawyers and court etc., the investment for such projects happens to be much lesser.

The society gets, Better standard of living and Latest amenities for the members.

Better level of infrastructure and services like, New better construction and elevation Grand Entrance Lobby and Lifts of reputed make Better Productive Plan for the New Flats More open spaces along with recreational facilities Separate Society Office / separate Toilets available for servants Provision for Seismic design for the building with Fire fighting systems, Health Club and Gymnasium with Ample Car Parking.

The other advantages being Generation of corpus for society, Increase in flat value ­ More saleable value of the flat for the same carpet area as of the existing building since the structure is new with provision of modern amenities and improved life style.

Maintenance of inherent features of existing project, No obstruction of the view, proper air ventilation catered in layout, Natural light catered in planning, Privacy of the building is maintained and a stand-by generator facility.

Since all the redevelopments are providing either basements or podiums or stilts for parking the vehicles of the occupants, the traffic blockages due to vehicle parking on the road can be less thereby assuring better conditions for the traffic and lesser problems for the Municipal corporation and the other departments related.

Due to redevelopments Govt. gets benefited with additional new taxes.

P.P. What best offers normally societies expect from a developer?

A.S. Society expects one additional room per flat.

Compensation, so that the additional maintenance and the normal furniture expenses are covered.

Reimburse ment of expenses necessary for the alternate accommodation till the new flats are handed over.

Modern amenities and quality construction with Parking facility and Modern elevation and Better usable planning.

P.P. If Society does not have conveyance or any other relevant documents, what are the remedies?

A.S. Though the government is drafting the procedure for deemed Conveyance, the society should appoint / hire Professional competent Advocate having expertise in Conveyance Cases for legal solution.

The following property documents can be obtained from respective departments Property Card and CTS Plan from city survey office Old Building approved Plans and other permissions from BMC office Property tax paid From BMC’s Assessment Department. ULC order from Collector’s office Non-Agricultural Order and N.A. Tax Paid Receipt from Collector’s office DP / TP remarks from respective departments Registration receipt, Stamp duty paid proof from the Registrar’s office Registered conveyance / Index II from the Registrar’s office Search report from an Advocate And Title Clearance Certificate about the property by an Advocate.



28 Comments so far ↓

  1. Sanjeev says:

    What are the rules for the building which is built in 1957?
    What will be the FSI?
    What are the other restrictions of leaving space from the compound wall if the plot area is 5000 sqft and the FSI is used completely.

  2. kamal khanna says:

    need your help on below query *****
    Dear Sir

    i need your suggestion as per your experience. we are staying in chawl/Building as tenent and this is going under redevelopment

    if the current total size of plot is 19,500 Sq Fts. and total tenents are 23+10=33 current size of each tenent is 180 Sq Ft of 23 Rooms and 290 Sq Fts pf 10 Rooms.

    what you think about our new proposal from builder ? How much we asked Sq ft of both category 23 rooms + 10 rooms.

    also corpus fund is eligable for us as tenent building or this is only for owner building as CHS?

    needfull if you can help on it?

    Best regards
    kamal khanna

  3. kamal khanna says:

    Dear Sir

    i need your suggestion as per your experience. we are staying in chawl/Building as tenent and this is going under redevelopment

    if the current total size of plot is 19,500 Sq Fts. and total tenents are 23+10=33 current size of each tenent is 180 Sq Ft of 23 Rooms and 290 Sq Fts pf 10 Rooms.

    what you think about our new proposal from builder ? How much we asked Sq ft of both category 23 rooms + 10 rooms.

    also corpus fund is eligable for us as tenent building or this is only for owner building as CHS?

    needfull if you can help on it?

    Best regards
    kamal khanna

  4. sharad kunte says:

    please clarify :

    1. Latest rule for allotting 35% space free of cost to the members of the society by the builder/developer.
    2. Latest rules regarding flower-bed.


  5. Madhusduan J Mulik says:

    Is it safe to join society under redevelopment (that is to prchase a flat )?

    what precuations should be taken ?

    Can you suggest buildings under redevelopment at Kurla Nehru Nagar, and the developers.


  6. manali shah says:

    i need your help regarding some problems relating to the redevelopment..

  7. vikram balan says:

    want to know full of CTS

  8. my building is going for redevlopement, what precautions we should take & how much extra carpet area we should ask from our builder, our bld. is 70 yrs. old.

  9. Mohammed Naeem says:

    It’s really very good and fruitful informations for redevelopments.

  10. NARENDRA says:

    i have flat in non cess building in south mumbai two room but single aggrement in two name,area 380.please advice what area we got when if gone for redevelopment

  11. Sachin Nazre says:

    This is second time I am writing on your website. Last time I had highlighted that DCR 1967 is applicable to non cessed CRZ projects as per 2011 CRZ notification, clarrifications available on MOEF website.

    As of date many MHADA societies in CRZ II are getting NOC from MHADA for FSI of 1.59 on basis of a non-sanctioned GR issued by Govt of Mah in 1982. As per MOEF clarrification which is available on MCZMA portal draft regulations are not applicable to CRZ projects development.

    Your site is good and informative. If you want to really share the information, please validate that the 1982 gr of 1.59 is not applicable as it was not sanctioned as per MRTP sec 37(2) and add a section on CRZ Redevelopment section of your website, as after going thru your section it appears that you dont have an idea that there are projects which dont fit in 33(7) 33(9) and 33(6) clauses of DCR 1991 and which are eligible only to 1.33.

  12. CHETAN AGARWAL says:


  13. shivram vasant dalvi says:

    Dear Sir,
    We have appointed PMC to development of our 6 society having 9 buildings Federation. After advertisement 8 builders have shown interest. Our society which is member of federation passed resolution in our society meeting that give a copy of Quoted tender by the Builders. But PMC & Federation is refusing to give a copy. saying it is confidential & society member only can study or see the documents in Federation Office. Managing Committee & pmc Short listed 2 builders out of 6. How it is only committee & PMC knows. Our Society wants to confirm the tender. What we have to do now.

  14. sunita says:

    Has the Mhada Registrar of Societies and Godrej Properties and Kamla Landmarc Property checked

    the eligibility of the Individual Society Managing Committee members ?

    Managing Committee members (mostly nominated not elected) who have become signatories of this
    Shell Colony, Sahakar Nagar-1, Chembur, Mumbai redevelopment project having more than two

    children are not even eligible to be a member of the Managing Committee under (Section 73-FF &
    144-E) ?

    If not checked it will be a violation of society rules on the part of :
    Mhada Registrar of Societies and the legal advisers of Godrej Properties and Kamla Landmarc

  15. vikas lokhane says:

    what is 33/5 can mhada give permission to register soc under slum upgradation schme. what is advantage to tenats.

  16. Yogesh Tank says:

    After how many years of the construction of building, a society can go for the redevelopment in Thane District ?

  17. Yogesh Tank says:

    Your site is very informative and it can help poeple at large in enhancing their knowledge in real estate sector.

  18. haresh says:

    Sir I want to know what is the surplus area and how its calculate and whats it proportion for share between developer and mcgm and mhada

  19. Ganesh says:

    I am a part of a chawl which is been built on 10 gunta of land and two more socities near by me of same area are planning for redevelopment.Total area (30 guntas) and total tenants are 126. We just pay assessment tax and no other documents we have. what area we can negotiate with builder for redevelopment. Pls advice.

  20. Arun Potdar says:

    We are redeveloping our old building by a builder.
    Most of the Tenants are agreeing our mutual conditions and they are ready for redevelopment except one tenant.
    Please inform me that what is the way out of this situation ?
    Thanks ,

  21. Mohan N. Pai says:

    What are the Redevelopment Steps, Rules, Guidelines and Procedures for pre-1942 cessed buildings located in Matunga (East), Mumbai?

  22. Dr R K Dalal says:

    Want to know how much percent extra on carpet area , the flat owner should get , as per latest rules ?

  23. PARESH C DAVE says:


    Our society has gone for redevelopment and the name of the society does not appear on Property card but same has been reflected in INDEX II.

    Can the developer without ammending the name of the society in propert card apply for IOD. As we have learned from our commitee members that the developer has already applied for IOD to MCGM without the name of the society in property card

  24. hardik Shah says:

    I would like to clarify regarding consent letter, that can an associate member sign on the consent letter?
    Your reply will be highly appreciated.

  25. Nilesh says:

    how to write redevelopment proposal letter to the builder…pls reply

  26. Upendra Gaitonde says:

    We, a Housing Society own a chawl in our premises with the Society being the landlords and the Chawl residents, the tenants.
    Our Society proposes to redevelop the Chawl. Can you suggest or recommend any literature / website / book that elaborates on the process and procedures for exhaustive and comprehensive compliance.
    I anticipate that a few members of the Committee characterised for their corrupt and dishonest persona may adopt unscrouplous means for personal benefits and illicit gains

  27. prashant says:

    Dear Sir,

    My building has gone for redevelopment and the same is ready. as per the agreement we have to measure the carpet area before posession which i did now the builder is not co operating and not ready to give posession.Please tell whom to approach.


  28. ramesh deshpande,parvati,pune30 says:

    I have gone through your informative instructions/guide lines towards redevelopment.
    I would like to ask u one question,that if the builder is expired, and owner of the land in co op.society, can we go for redevelopment scheme? What are legal formalities are to be completed by the flat owners?
    Please guide in the matter

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