in the context of urban development, is a comprehensive process aimed at
revitalizing and rejuvenating existing residential or commercial
properties by replacing outdated or dilapidated structures with modern,
efficient, and sustainable buildings. This involves the demolition of
existing structures and the construction of new ones in their place, often
incorporating additional floor space index (FSI) and other development
rights provided by the local authorities.
need for redevelopment arises from various factors, particularly in
densely populated metro cities like Mumbai:
Condition: Many old buildings deteriorate over time due to wear
and tear, exposure to natural elements, and lack of maintenance, posing
safety risks to occupants.
Weakness: Buildings aged over 30 years may become structurally
weak, vulnerable to corrosion, and unable to withstand adverse weather
conditions or seismic activity.
Infeasibility of Repair: In some cases, the cost of major repairs
exceeds the cost of reconstruction, making it economically unviable to
restore the existing structure.
of Amenities: Older buildings may lack modern amenities such as
elevators, parking spaces, and recreational facilities, which are
increasingly demanded by occupants.
Constraints: With changing demographics and family sizes,
occupants often require more living space, which may not be feasible
through horizontal expansion in land-constrained cities like Mumbai.
Property Prices: Skyrocketing property prices make it financially
unfeasible for owners to afford larger homes or for developers to invest
in new construction without additional incentives.
Incentives: State governments and municipal authorities often
provide concessions such as higher FSI, transferable development rights
(TDRs), and streamlined approval processes to encourage redevelopment
for Modern Living: Aspirations for modern living standards,
including spacious and well-equipped residences with amenities like sports
facilities and health clubs, drive the demand for redevelopment.
Development Rights: Many existing buildings have untapped
development potential, allowing for the construction of taller structures
with additional space that can be allocated to existing occupants or sold
Expansion: In landlocked cities where horizontal expansion is not
feasible, redevelopment offers the only viable option for expanding
housing capacity and meeting the needs of a growing population. The
redevelopment process typically involves collaboration between property
owners, developers, architects, and government agencies to ensure
compliance with zoning regulations, building codes, and environmental
standards. It aims to transform aging urban infrastructure into vibrant,
sustainable, and livable communities that meet the needs of current and
its benefits, redevelopment can face challenges, particularly when some
members of a housing society resist the process. Reasons for opposition
may include concerns about transparency, suspicion of fraud or favoritism,
reluctance to vacate premises, or dissatisfaction with proposed terms of
the redevelopment agreement.
address these challenges and ensure smooth execution, societies may opt
for different models of redevelopment, such as self-redevelopment or
redevelopment through builders. Each approach has its pros and cons, with
factors like funding availability, technical expertise, and level of
control influencing the decision.
involves members of the society taking direct responsibility for the
project, including securing funding, overseeing construction, and managing
legal and administrative aspects. While this approach offers greater
control and potentially higher returns, it requires significant time,
effort, and expertise from society members.
the other hand, redevelopment through builders involves outsourcing the
project to a professional developer who handles all aspects of the
redevelopment process. While this can relieve the society of many
logistical challenges, it may also entail giving up some control over the
project and accepting the terms set by the developer.
of the chosen approach, successful redevelopment requires careful
planning, transparent communication, and adherence to legal and regulatory
requirements. Societies must conduct structural audits, assess market
values, negotiate agreements, and ensure quality control throughout the
are numerous challenges contributing to the stagnation of many building
redevelopment projects. Among the most prevalent issues are legal
entanglements, prolonged delays caused by builders, and difficulties in
reaching mutually acceptable terms between residents and developers.
Additionally, builders can exploit Floor Space Index (FSI) regulations and
manipulate agreement terms to their advantage.
frequently circumvent FSI rules and breach agreement terms by engaging in
illicit practices such as unauthorized expansion beyond their allotted
space. Consequently, unsuspecting buyers of these unlawfully extended
properties often find themselves embroiled in legal disputes at a later
stage. To mitigate such risks and ensure the successful execution of
redevelopment projects within housing societies, meticulous attention to
detail is required in documenting all demands and negotiations in the
Development Agreement. The office bearers and managing committee members
play a crucial role in overseeing this process.
members obstructing the redevelopment of housing societies in Mumbai often
cite various reasons for their resistance. These reasons can vary from
concerns about transparency in the redevelopment process to suspicions of
fraud or favoritism. Some of the common reasons why rebellious members may
obstruct redevelopment include:
of Transparency: Members may raise
objections if they feel that the redevelopment process is not being
conducted in a transparent manner. This could include concerns about
financial transactions, decision-making procedures, or the selection
to Relocate: Senior and aged members of
the society may resist redevelopment because they are unwilling to
vacate their homes and move to rental accommodations during the
construction period. The prospect of moving to temporary housing can
be daunting, especially for elderly residents.
Fraud or Favoritism: There may be
allegations of fraud or favoritism involved in the redevelopment
process, leading some members to distrust the motives of the managing
committee or the developer. Suspicions of underhanded dealings can
fuel opposition to the project.
Unfair Benefits: Some members may
believe that the managing committee or certain individuals stand to
gain disproportionately from the redevelopment project. This could
include accusations of committee members receiving larger flats or
other perks in the new building.
Tactics: Rebellious members may feel
that they are being coerced or manipulated into accepting the
redevelopment proposal, leading to resentment and resistance.
High-handed behavior from the administrative body can exacerbate
tensions within the society.
Recourse: Minority members may resort
to legal action if they believe their objections are valid and have
not been addressed through the normal channels of dispute resolution
within the society. Legal proceedings can be costly and
time-consuming, adding another layer of complexity to the situation.
these objections, it is important to note that the Maharashtra
Co-operative Societies Act empowers the majority of members to make
decisions regarding redevelopment, with the consent of at least 75% of the
members being sufficient to proceed with the project. While rebellious
members may delay or stall redevelopment projects, the courts generally
uphold the decisions of the majority unless there is evidence of fraud or
cases where objections are deemed valid by the court, it may order the
society to restart the bidding process for redevelopment or address
specific concerns raised by the dissenting members. However, it is
essential for members to consider the potential costs and implications of
legal action, as litigation can further prolong the redevelopment process
and incur significant expenses for all parties involved. Ultimately,
effective communication, transparency, and fair treatment of all members
are essential for navigating the challenges associated with redevelopment
projects in housing societies.
of redevelopment encompass a range of approaches aimed at revitalizing and
improving existing structures and communities. These approaches vary in
their implementation and objectives. Here are several types of
Self-redevelopment involves flat owners taking on the responsibility
of redeveloping their own building without the involvement of external
developers. This approach allows flat owners to gain extra space and
potentially receive a corpus from the sale of additional flats.
However, it requires coordination and cooperation among members to
ensure the smooth completion of the project.
through Builders: Redevelopment through
builders is a common model where developers are engaged to carry out
the redevelopment project. While societies may prefer reputed
developers, delays and other issues can sometimes arise, causing
hardships for occupants.
Redevelopment: Slum redevelopment is an
urban renewal approach aimed at transforming poor and low-income
settlements into new developments or housing units. This often
involves providing residents with new and improved housing options,
typically of around 300 square feet in size, while also addressing
issues of infrastructure and amenities.
of Tenanted Buildings: Redevelopment of
tenanted buildings involves upgrading or replacing existing structures
while accommodating the needs of current tenants. This may include
providing alternative housing during the construction phase and
ensuring that tenants' rights are protected throughout the process.
Development: Cluster development
focuses on the economic growth of entire residential areas while
safeguarding open spaces and environmental resources. This approach
involves building houses closer together on specific plots of land
rather than distributing them uniformly across vast areas. It may also
include rehabilitating unsafe or dangerous buildings and expediting
the resolution of legal disputes related to such properties.
For an old building
to undergo redevelopment, it typically needs to have completed at
least 30 years and must be certified by a government-approved
architect as fit for redevelopment based on a structural audit.
The building should
ideally have conveyance in its name, although many societies struggle
to obtain this. Seeking resolution through consumer court cases
against the builder can help expedite the conveyance process.
implications should be considered when deciding on redevelopment, as
there may be potential tax liabilities on the money received and
penalties for project delays beyond 36 months. Proper planning and
consultation with tax experts are essential in navigating these
fever of redevelopment has taken hold of some of the most prestigious
housing societies in the ultra-premium areas of south Mumbai, including
Malabar Hill, Walkeshwar, Nepean Sea Road, and Altamount Road. These
neighborhoods boast some of the highest property prices in the city, with
new flats fetching prices upwards of Rs 1.5 lakh per square foot.
Similarly, in Bandra, Andheri, affluent locales such as Pali Hill, Carter Road,
and Mount Mary, Lokhandwala, where property prices rival those of the city center,
numerous upscale societies are also opting for redevelopment, not to forget in the central line as Kanjurmarg, Powai, with many
already securing agreements with top-tier builders.
of these societies typically occupy flats ranging from 1,300 to 2,300
square feet and are anticipating significant additional space in the new
constructions, ranging from 30% to 50%, depending on factors such as the
already utilized floor space index (FSI) and the proximity to amenities
like metro stations.
preference for A-grade developers stems from past experiences with smaller
developers who faced challenges in completing projects. Many top builders,
who were previously not involved in society redevelopment, have now
recognized the value they can bring to society members and are actively
pursuing such projects.
addition to the upscale areas of south Mumbai, redevelopment is also
gaining traction in other prime locations such as Altamount Road,
Carmichael Road, Walkeshwar, and Worli. This trend suggests that the
supply of ultra-luxury units will continue to increase in these
micro-markets in the future.
the redevelopment of MHADA buildings, which cater mainly to economically
weaker and low-to-middle-income groups, is also undergoing significant
changes. Tripartite agreements involving housing societies, developers,
and the Maharashtra Housing Area Development Authority (MHADA) are now
mandatory for all redevelopment projects. This shift aims to streamline
the process and address long-standing issues such as stalled projects and
rent payment disputes.
a recent ruling by the Bombay High Court has implications for the cost
structure of redevelopment projects involving MHADA colonies. The court
has ruled that rehabilitation components of such projects will no longer
attract premiums on common areas like staircases, car parks, fire escapes,
lobbies, and lift rooms. This ruling is expected to significantly impact
the cost dynamics of these projects, as up to 30% of a project's cost in
Mumbai typically goes towards premiums collected by authorities.
Consequently, this decision will lead to more transparent and
cost-effective redevelopment processes for MHADA colonies.
in housing society redevelopment are numerous and complex, posing risks
and challenges that require careful consideration and management:
Dilemma: Societies often face the
dilemma of whether to undertake self-redevelopment or entrust the
project to a builder.
Process: The process of building
redevelopment in housing societies is intricate and involves multiple
stakeholders and regulatory requirements.
and Effort: Redevelopment projects
demand considerable time and effort to accomplish, leading to
potential delays and frustrations.
of Failure: Failure to follow a proper
and time-bound process or address risks and uncertainties adequately
can result in project failure or significant delays, causing anguish
to flat owners.
Many redevelopment projects become entangled in prolonged litigation
in courts, leading to costly and time-consuming legal battles.
Attachments: Every member is
emotionally attached to their property, often leading to reluctance to
compromise or trust others, hindering decision-making and progress.
of Individuals: Decision-making in
societies may be influenced by a few individuals, rather than being
based on a collective and rational evaluation of options.
Challenges: Builders may face
unreasonable demands from members, leading to conflicts and delays in
of Member Involvement: Society members
may relinquish decision-making to the builder, neglecting their own
preferences and requirements for the redevelopment.
Selection: Choosing amenities for the
new construction requires careful consideration to ensure they meet
the diverse needs of society members and contribute to the overall
well-being of the community.
Management: Given the criticality of
water supply, proper planning for water storage, harvesting, and usage
is essential to address future challenges.
Size Considerations: Balancing the size
of flats to accommodate various needs while maintaining harmony in the
society can be challenging.
Needs: The pandemic has highlighted the
need for separate spaces for work and study at home, requiring
adjustments in design and connectivity.
Allotment: Deciding on flat allotment
principles and addressing concerns about occupancy in the new
construction requires patience and goodwill among members.
Issues: Redevelopment projects are
subject to various taxes such as GST and income tax, necessitating
careful consideration of tax liabilities and implications on benefits
poses specific challenges that need to be addressed for a smooth
Arrangements: Securing funds for
approvals, premiums on higher FSI and TDR, and construction costs can
be daunting, requiring careful planning and financial management.
Expertise: Construction oversight
demands technical expertise and vigilance over a period of 2-3 years.
Identifying responsible members willing to undertake this task can be
challenging, particularly as most members are occupied with other
and Trust Issues: Active members
involved in the redevelopment process may face suspicion regarding
potential benefits from contractors or undue favoritism, impacting
trust within the society.
of Extra Space: Disposing of surplus
space in the open market with transparency can present logistical and
ethical dilemmas, requiring clear strategies and protocols.
Laundering Concerns: Ensuring
transparency and accountability in financial transactions is essential
to mitigate risks associated with money laundering.
Frustration and Builder Reliance:
Existing members may become frustrated with the complexities of
self-redevelopment and opt to transfer the project to a builder,
relinquishing control over decision-making.
navigate these challenges effectively, societies can adopt the following
Project Management: Hiring a technical
project manager to provide guidance and oversight on construction
matters can ensure the project is executed efficiently and meets
of Society Leadership: Designating a
CEO within the society to oversee project execution and
decision-making can streamline processes and represent the collective
interests of members.
Financial Consultation: Engaging
chartered accountants and tax consultants specialized in GST and
income tax can provide valuable insights and ensure compliance with
Fundraising: Exploring diverse avenues
for fundraising, such as loans from banks, selling spare space to
corporate entities, or partnering with venture capitalists, can help
secure necessary capital for the project.
Contributions and Collaboration:
Members can contribute proportionately to construction costs based on
their space allocation and introduce new members to alleviate
financial burdens. Upon project completion, members can reclaim their
addressing these issues proactively and implementing effective strategies,
housing societies can navigate the challenges of self-redevelopment and
achieve successful outcomes.
finalizing any decision regarding redevelopment, it's crucial to consider
several key points:
Audit: Conduct a structural audit of
the building to determine whether it requires redevelopment or major
repairs. Without a technical report, it's legally impermissible to
pass a resolution in the general body meeting for redevelopment
Value Assessment: Establish the market
value of the property you'll receive post-redevelopment before
negotiating with a developer. This ensures a fair deal and avoids
conflicts during negotiations.
Considerations: Evaluate the commercial
aspects of the redevelopment, including compensation for higher
property taxes, additional area, or alternative accommodation during
construction. Ensure that agreements address these aspects clearly.
Specifications: Define quality
parameters and technical specifications for the finished product.
Appoint a lawyer to draft agreements detailing technical
specifications, project timelines, and quality standards to avoid
and Design: Consider eco-friendly and
sustainable design principles in line with current trends. Ensure
adequate provision for air, light, and wellness, minimizing pollution
and chemical usage.
to Changing Trends: Anticipate changing
fashions and technological advancements to ensure the building remains
relevant for years to come. Consult foreign experts and publications
to incorporate innovative ideas.
Control: Exercise due diligence to
ensure construction adheres to agreed specifications. Collusion risks
should be mitigated to maintain construction quality, reducing future
and Agreement Drafting: Meticulously
draft tender documents and agreements to avoid disputes between the
society and developer. Seek professional legal and technical expertise
to anticipate and address potential problems.
Guarantee: Insist on a performance
guarantee from the builder to ensure timely construction and quality
control. Clearly outline penalties for breaches of contract by either
Selection Criteria: Prepare a
comparative analysis considering the builder's reputation, technical
capability, financial status, and past project completion. Select a
builder based on merit and experience.
Premises: Ensure all members consent to
vacate the premises as per the resolution passed in the general body
meeting. Legal action may be necessary if any member refuses to
carefully considering these points, housing societies can make informed
decisions and navigate the complexities of redevelopment effectively.
exist numerous challenges hindering the progress of building redevelopment
projects. Common issues include:
Various legal complications can arise, such as disputes over property
rights or zoning regulations, delaying the redevelopment process.
Builders may prolong projects due to financial constraints, resource
shortages, or mismanagement, leading to frustration among residents.
between residents and builders: Negotiations between residents and
builders regarding terms and conditions can stall progress if
consensus cannot be reached.
may exploit Floor Space Index (FSI) rules and agreement terms in several
Documentation awareness: Understanding the necessary paperwork and tax
implications is crucial. Key documents like the Development Agreement and
Power of Attorney must be registered with appropriate stamp duty.
Development Agreement execution: By entering into a Development Agreement
with the Society, builders obtain permission to develop the land and
initiate construction, while retaining some units for profit.
Clauses in Development Agreement: Important aspects such as Society and
member participation, conveyance deed history, and registration details
must be addressed.
Details of existing flats: Including information on carpet area, plot
area, and estimated FSI available for construction using Transferable
Development Rights (TDR).
Transparency in project status: Lack of transparency regarding floor area,
project progress, construction quality, and design philosophy can lead to
distrust among stakeholders.
Understanding area terminology: Carpet Area, Built-Up Area, and Super
Built-Up Area definitions must be clear to all parties involved,
Specification of carpet area: The Development Agreement should specify the
carpet area, payment schedule, and tentative vacating date for residents.
Completion timeline: Defining a timeline for project completion, including
penalty clauses for delays, ensures accountability and adherence to
Responsibility for municipal payments: The agreement should outline the
builder's obligation to cover municipal rates, taxes, and other payments
until residents take possession of their new flats.
addressing these points diligently, both builders and residents can
navigate the complexities of redevelopment more effectively and ensure
smoother project execution.
process for the redevelopment of a Co-operative Housing Society's building
involves several meticulous steps to ensure smooth execution. Here's an
Requisition for a Special General Body Meeting (SGBM):
At least 25% of
society members must submit a requisition to the Secretary,
proposing a scheme for redevelopment. b) Convening the SGBM:
Committee must acknowledge the requisition within 8 days.
convenes the SGBM, providing the agenda to members at least 14
days in advance.
SGBM Proceedings: a)
proposals and suggestions for redevelopment. b) Selection of
an expert Architect/Project Management Consultant from
government/local authority panels. c) Outline Program:
Submission of a
redevelopment program outline.
A quorum of at
least 75% of members is required.
decisions are made by majority vote.
further decisions are made regarding the appointment of
consultants and the program outline.
consultant surveys the building and land, gathers conveyance
information, and considers relevant policies and regulations.
A project report
is prepared within two months and submitted to the society
A joint meeting
is convened to approve the project report, considering member
forms are prepared for further discussion.
General Body Meeting is convened with an authorized officer
present from the Registrar's office.
selection, terms finalization, and tender approval are conducted
by a majority vote.
An agreement is
reached within one month, outlining project timelines, bank
guarantees, member accommodations, dispute resolution mechanisms,
and other pertinent details.
The agreement is
registered under the Registration Act, 1908.
registration is ensured, and thorough research on the developer's
track record is conducted.
meticulously following these steps, Co-operative Housing Societies can
navigate the complex process of building redevelopment, ensuring
transparency, accountability, and successful project completion.
pivotal role of a reputable Builder/Developer cannot be overstated in the
successful execution of any Redevelopment Project for a Housing Society.
Choosing the right Builder is akin to finding a suitable partner for
marriage—a decision fraught with stress and complexity.
urban landscapes like Mumbai, where skyrocketing costs and limited space
render moving out of ageing and dilapidated Housing Societies impractical,
the concept of redevelopment emerges as a beacon of hope. For residents,
it represents the realization of a dream for new and improved living
the urgent need for redevelopment, concerns loom large regarding the
reliability of Builders. While many promise the moon to Housing Societies,
there have been numerous instances where such promises turned into
nightmares for middle-class families. Even reputed Builders have faltered
in fulfilling the terms of redevelopment projects.
an accountable and trustworthy Builder is a Herculean task crucial for the
success of any redevelopment endeavor. A failed project can spell disaster
for all involved, with the Managing Committee often bearing the brunt of
the realm of redevelopment, prevention is undoubtedly better than cure.
Avoiding a botched redevelopment begins with a meticulous selection
process for the Builder. Once chosen, it's imperative to incorporate all
legal safeguards in the Development Agreement under the guidance of
experts well-versed in redevelopment laws. This proactive approach
significantly reduces the likelihood of future discrepancies.
stark contrast to professions like plumbing and electrical work, Builders
operate without the need for licenses, relying solely on charm and
persuasion. There exists a glaring need for enhanced education and
regulation within the builder community to curb unethical practices and
safeguard consumer interests.
to regulations, a society must complete conveyance before opting for
redevelopment. However, Builders often exploit consumer ignorance,
flouting rules by omitting property owners as confirming parties in
agreements. Despite this breach, banks readily extend loans to Builders,
perpetuating a cycle of corruption and malpractice.
challenges such as unrealistic promises, financial constraints,
corruption, stakeholder management, and tax implications frequently plague
redevelopment projects. Yet, with meticulous planning and foresight, each
obstacle can be navigated and addressed effectively.
it comes to selecting a Builder for the redevelopment of a Housing
Society, it's crucial to consider both financial and qualitative aspects.
While financial terms such as carpet area, corpus amount, rent for
alternative accommodation, and penalties are often the focus, the
qualitative aspects of the Builder's track record and experience are
equally important. Here's a detailed checklist to guide the selection
Reputation: Assess whether the Builder
has a strong brand presence in the market, indicating reliability and
Redevelopment Projects: Determine how
many redevelopment projects the Builder has undertaken specifically
for MHADA buildings, as this demonstrates experience with government
regulations and procedures.
Experience: Evaluate the Builder's
experience in converting leasehold properties to freehold,
particularly with MHADA properties, which can be complex and require
Standards: Ensure that the habitable
area of the redevelopment matches the quality and brand standards set
by the Builder for their saleable properties.
Record: Research whether the Builder
has a history of violating regulations or acts laid down by
authorities, as this could indicate potential legal or regulatory
issues during the project.
History: Investigate the Builder's
litigation history, including types of disputes, time taken to resolve
issues, and any ongoing legal proceedings with other societies.
Structure: Understand the Builder's
systems, structure, and strategic approach to project execution, which
can indicate their professionalism and ability to handle complex
Teams: Assess whether the Builder has
strong in-house construction and marketing teams, as this can impact
project efficiency and quality.
Management: Determine whether the
Builder has a track record of cost and time overruns on previous
projects, which can affect the overall success of the redevelopment.
Expertise: Evaluate the Builder's level
of expertise in project implementation, including the range of
completion timeframes for previous projects.
Process: Assess the Builder's ability
to obtain necessary approvals from various authorities on time,
including MHADA, Fire Safety, Environment, and BMC, to avoid project
Knowledge: Determine whether the
Builder is knowledgeable about and comfortable with the local
environment, as this can help navigate unforeseen hurdles during the
Affiliation: Investigate any political
affiliations of the Builder or their promoters/owners, as indirect
control from politicians could impact project dynamics.
Abilities: Assess the Builder's
abilities in raising equity and debt funding, which can impact project
financing and execution.
Transparency: Ensure that the Builder
follows transparent and consistent financial accounting policies,
minimizing the risk of financial irregularities.
and Legal History: Investigate any
history of tax litigation or raids from GST, Income Tax, or VAT
authorities, as this could affect project stability.
Record: Research any history of
accidents or safety incidents on the Builder's construction sites,
prioritizing safety for all stakeholders.
Availability: Determine the Builder's
current fund availability and funding pattern, ensuring they have the
financial capacity to complete the project.
and Responsiveness: Assess whether the
Builder is easily reachable and available to address any emergencies
or concerns that may arise during the project.
selecting a Builder for the redevelopment of a Housing Society, it's
essential to conduct a thorough and analytical evaluation to ensure the
project's success. Here's an expanded checklist to guide the selection
Check: Analyze at least two or three
other Societies where the Builder has completed similar projects.
Verify whether the Builder adhered to quality and timeline promises
documented in the Development Agreement, and examine the
infrastructure and finishes provided.
Approach: Recognize that each
redevelopment project is unique and requires a customized, flexible,
and transparent approach. Ensure that the Builder selection process
aligns with the specific redevelopment rules and regulations governing
Offers: Emphasize competition rather
than price when evaluating commercial offers from potential Builders.
Focus on selecting a genuine Builder based on merit, reputation,
technical capability, experience, financial stability, and quality of
Evaluation: Visit the Builder's website
to assess their reputation and clientele. Request references and
review previous projects similar to yours to gauge the quality and
durability of their work.
Dates: Consider the Builder's
availability and workload. Reputable Builders may have a waiting
period before commencing new projects, indicating their demand and
Cold Calls: Be cautious of Builders who
approach you unsolicited. Established Builders with a strong
reputation are typically in high demand and do not resort to cold
Period: Discuss the estimated
construction period with the Builder, considering the scale of the
project. Ensure that the Builder commits to timely completion and
obtaining necessary certificates from authorities.
Prioritize Builders with extensive experience in the industry. Their
accumulated knowledge and expertise will be invaluable during the
Knowledge: Verify that the Builder
possesses comprehensive technical knowledge relevant to the project.
This includes understanding local regulations, permits, and building
Measures: Confirm that the Builder
prioritizes safety throughout the construction process. Compliance
with safety regulations ensures peace of mind and adds value to the
Assurance: Ensure that the Builder
maintains high standards of construction quality, including the use of
quality materials and adherence to specifications outlined in the
Liability: Require the Builder to
include a defect liability clause in the Development Agreement,
covering structural defects for a specified period after possession.
Recognize that professional Builders may have a busy schedule. Be
prepared to wait for their availability, as immediate availability may
indicate a lack of demand or professionalism.
to Plans: Confirm that the Builder
adheres to approved plans and avoids unauthorized construction, which
could lead to regulatory issues in the future.
Documentation: Review the tender
document provided by the Builder, ensuring it contains comprehensive
details on financial, technical, and general information. Request
disclosure of any past or present litigation cases involving the
the process of society redevelopment, a multitude of documents, both legal
and technical, are required to ensure smooth and lawful execution. Below
is an expanded and detailed list of these essential documents:
Documents Required for Society Redevelopment:
conveyance in the name of the society. If the builder or landowner is
unwilling, pursue the deemed conveyance route.
Card (PR Card): Ensure
that the property card reflects ownership in the society's name.
Obtain a fresh property card if necessary.
Survey Plan: Obtain
the latest city survey plan of the property from the City Survey
Deed & Renewal of Lease: Renew
the lease if it is expiring soon, especially if the plot is leasehold.
Registration Certificate: Provide
the society's registration certificate.
Extract: Submit the
7/12 extract of the property.
No. 6 from Revenue Office: Obtain
Form No. 6 from the Revenue Office.
Report & Title Certificate: Provide
a search report and title certificate.
II: Submit Index II
Order: Include the
Certificate (OC): Provide
the OC for the existing structure.
Certificate (CC): Submit
the CC for the existing structure.
(Copies) Required from Society Members:
Stamp duty paid
proof for all members.
registration charges paid.
Sale deed, allotment
letter, or agreement to sale evidencing ownership of the flat.
Documents Required for Society Redevelopment:
BMC Plan: Obtain the
old BMC and IODCC plans of the existing building to determine the
existing carpet area.
Survey: Conduct a
physical survey of the plot and flats to resolve any disputes
regarding carpet area and plot size.
Remarks: Obtain fresh
DP remarks of the plot from the local BMC.
Audit Report: Obtain
a fresh structural audit report to assess the existing structure's
durability and identify necessary repairs.
(Copies) Required from Developer/Builder:
MCA or Registrar of
Last 3 years' Income
Tax Assessment orders.
Last 3 years' GST
Certificate from the
company's auditor regarding pending tax dues and litigation.
Last 3 years'
audited accounts and annual reports.
Required During the Redevelopment Process:
Developer & Society.
Committee members and the Developer.
Public notice for
Minutes of various
Permission from the
Tender form and
summary of tenders received.
& Letters Required During Redevelopment:
Bank guarantee from
Power of attorney
from the society to the developer.
MOU between the
society and builder/developer.
from the society to the builder/developer.
under Section 33(7) of the Development Control and Promotion Regulations
(DCPR) 2034 applies to cessed buildings in Mumbai where there is no
cooperative housing society, and tenants reside in the building. This
provision allows for the redevelopment of such buildings with the consent
of the majority of the tenants and the approval of the competent
authority. Here's a detailed step-by-step guide along with the required
documents for redevelopment under Section 33(7) of the DCPR 2034:
1: Preliminary Survey and Feasibility Study
of the Building: Conduct
a thorough survey of the cessed building to assess its condition,
structural stability, and the feasibility of redevelopment.
Study: Prepare a
feasibility study to evaluate the economic viability, technical
feasibility, and legal aspects of the redevelopment project.
2: Consent of Tenants
with Tenants: Initiate
discussions with the tenants residing in the building to explain the
benefits and implications of redevelopment.
written consent from a significant majority of the tenants (typically
70% or more) for the redevelopment project. This consent should be in
the form of a signed agreement or resolution.
3: Appointment of a Developer
Process: Choose a
reputable and experienced developer through a transparent selection
process. Consider factors such as track record, financial capability,
expertise, and past experience in similar redevelopment projects.
of Agreement: Execute
a development agreement between the landlord (or the owner of the
building) and the developer. This agreement should outline the terms,
conditions, and responsibilities of both parties.
4: Application to the Competent Authority
of Proposal: Prepare
and submit a redevelopment proposal to the competent authority,
typically the Municipal Corporation of Greater Mumbai (MCGM).
Required: Include all
necessary documents such as the development agreement, consent of
tenants, building survey report, NOCs from relevant authorities, and
other legal documents.
5: Approval Process
of Proposal: The
competent authority will review the redevelopment proposal and conduct
site inspections to verify compliance with regulations.
Notice: A public
notice may be issued inviting objections or suggestions from the
public regarding the proposed redevelopment.
satisfactory review and resolution of any objections, the competent
authority will grant approval for the redevelopment project.
6: Commencement of Redevelopment Work
of Possession: The
landlord or owner of the building hands over possession to the
developer for the commencement of redevelopment work.
Phase: The developer
initiates the construction process according to the approved plans and
7: Completion and Handover
Completion Certificate: Once
the redevelopment work is completed, the developer obtains a
completion certificate from the competent authority.
to Tenants: The
redeveloped units are handed over to the tenants as per the terms
agreed upon in the development agreement.
Written Consent of
NOCs from Relevant
Public Notice (if
are some key considerations:
During the redevelopment process, it is imperative to understand the
various documentation requirements and the tax implications associated
with immovable property redevelopment. Principal documents such as the
Development Agreement and Power of Attorney must be duly registered by
paying the requisite stamp duty.
By executing the Development Agreement with the society, developers obtain
the necessary permissions to commence land development. Subsequently, they
undertake construction activities at their expense, retaining certain
units for sale in the open market to generate profits.
When drafting the Development Agreement, it's essential to ensure the
participation of the cooperative society, the developer, and ideally, all
members. Key details such as the society's conveyance deed history and
registration number under the Maharashtra Co-Operative Societies Act,
1960, should be included.
The Development Agreement should encompass particulars of existing flats,
including their carpet area, as well as details of the plot area and the
total estimated FSI area available for construction utilizing Transferable
Development Rights (TDR).
Transparency in various aspects, such as floor area measurements (carpet,
built-up, super built-up, etc.), project status, construction quality, and
design standards, is crucial to avoid disputes.
Clear delineation of carpet area and additional areas available to members
in the new building, along with a defined schedule of payment and
tentative vacating dates for old flats, should be outlined in the
The agreement should stipulate the time frame for completing construction,
along with penalty clauses for delays. Additionally, provisions for the
developer to bear municipal rates, taxes, and other payments until the
project's completion and possession should be included.
summary, navigating the complexities of redevelopment projects in housing
societies requires meticulous planning, transparent communication, and
adherence to legal and regulatory frameworks to ensure the protection of
stakeholders' interests and the successful completion of projects.
role of a builder in the redevelopment of housing societies is crucial, as
they are responsible for transforming ageing and dilapidated structures
into modern, safe, and habitable spaces for residents. However, selecting
a trustworthy builder can be a daunting task for housing societies, as the
wrong choice can lead to disastrous consequences. Hence, it is essential
to follow a thorough process to ensure the selection of a reliable
Mumbai, where space is limited and costs are high, redevelopment offers a
promising solution for residents of older housing societies. Thousands of
such societies face issues related to safety, security, and the absence of
modern amenities. Redevelopment projects provide an opportunity for
residents to have new and improved living spaces. However, despite the
promises made by builders, there have been instances where redevelopment
projects have turned into nightmares for residents.
a builder requires careful consideration of various factors, including the
builder's reputation, track record, experience, and adherence to legal
regulations. It is essential to conduct extensive research on the
builder's past projects, including their construction, marketing, and
legal track record. Additionally, factors such as the builder's brand
strength, experience in handling similar projects, and compliance with
rules and regulations should be evaluated.
checklist for selecting a builder should include qualitative aspects along
with financial considerations. It should assess the builder's ability to
deliver projects on time, their knowledge of local regulations, safety
measures, and their financial stability. Societies should also analyze the
builder's past litigation history, political affiliations, and funding
selection process should involve analyzing multiple aspects, including the
builder's construction quality, safety standards, and defect liability
clauses. Societies should ensure that the builder has the necessary
expertise, resources, and commitment to deliver the project as per the
agreed terms and timelines.
is a crucial aspect of the redevelopment process, and societies should
ensure that all necessary documents are in place before proceeding with
the project. This includes conveyance deeds, property cards, city survey
plans, and structural audit reports. Additionally, societies should obtain
copies of documents from the builder, including their registration
certificates, financial statements, and tax compliance records.
the redevelopment process, societies should maintain transparency and
adhere to legal and regulatory requirements. They should actively
participate in decision-making processes and seek legal advice when
necessary. By following a systematic approach and conducting due
diligence, societies can mitigate risks and ensure the successful
completion of redevelopment projects.
conclusion, selecting a reputable and trustworthy builder is crucial for
the successful redevelopment of housing societies. By considering various
factors and following a thorough process, societies can minimize risks and
ensure that their redevelopment projects meet the expectations of
residents. It is essential to educate residents about the complexities
involved in redevelopment and empower them to make informed decisions to
safeguard their interests.
the redevelopment process, ensure that the interests and welfare of
the tenants are prioritized. Address their concerns and provide
assistance as needed.
Compliance: Adhere to
all legal requirements and regulations governing redevelopment
projects, including those specified under Section 33(7) of the DCPR
2034 and other relevant laws.
transparency in all dealings with tenants, developers, and
authorities. Keep all stakeholders informed about the progress and
developments of the project.
that the redevelopment project meets high-quality standards in
construction, amenities, and infrastructure to enhance the living
standards of the tenants.
Consent of Members
Certificates (NOCs) from Authorities
following these steps and considerations and ensuring compliance with all
legal requirements, a cooperative housing society can successfully
undertake the redevelopment of cessed buildings under Section 33(7) of the
DCPR 2034, benefiting both the tenants, Landlord and the Developer.