Prashant Uikey's notes on Redevelopment procedure for Mumbai's OLD HOUSING SOCIETIES
Redevelopment of housing societies is usually burdened with bitterness and complaints of highhandedness and corruption against the Managing Committee. Hence, with a view to ensure transparency in societies seeking to undertake redevelopment projects, the state co-operative department has, for thefirst time, issued guidelines for societies to follow under section 79 (A) of the Maharashtra Co-operatives act, 1960.
The guidelines are issued by a committee comprising the co-operatives commissioner and CIDCO chairman pursuant to a deep study of complaints by members of Housing Societies undertaking the redevelopment of their property. According to an important feature in the guidelines, a redevelopment scheme has to be approved by the general body only if three-fourths of the society members are present at the meeting.
The special general body has to approve the bid of the successful bidder in a meeting attended by the registrar. The entire proceedings have to be video-recorded. Once the agreement is accepted in terms of area and corpus fund, it cannot be revised. The successful bidder has to give a bank guarantee equivalent to 20% of the total project cost to show his financial strength, and proof that he will not throw away the project midway.
The Developer has to complete the redevelopment project in two years, or a maximum of three years. The development agreement must be signed on carpet-area basis. Most importantly, if, for some reason, the successful Developer is unable to complete the project, he cannot sell his agreement to another Developer.
It has been often noticed that during the process of redevelopment, the terms of Development
Agreements as agreed upon, are later twisted and grossly violated by the Developers and the ground rules of MRTP and DCR by unlawful planning are flouted by constructing additional/unauthorized areas that are beyond the entitlement (i.e. beyond the plot FSI and the TDR/FSI loaded) for their hidden financial gains. The buyers of such unlawful flats/properties land themselves in deals that lead to litigation at a later date.
At times, upon the completion of the Project, there are major inconsistencies and discriminatory features noticed in the approved plans v/s actual layouts, measurements and other aspects in respect of the constructions of residential area and the commercial area which may not be in conformity with the Development Agreement originally executed between the Society and the Developer.
Under Right to Information Act, the Housing Society can procure all the Plans and the related
documentary evidences from MCGM duly attested by two Senior Engineers of the Building Proposals Dept. to study the anomalies which exist in execution of the entire redevelopment project even after the occupancy certificate is issued.
It has also been observed that the deviation of vital Rules and Guidelines of MRTP/MCGM/DCR are conveniently overlooked by few corrupt and dishonest but “Sympathetic Officials” of MCGM and the final plans with numerous anomalies so submitted by the said Developer are approved by them without verifying the justifiability or its conformity with the Development Agreement executed with the Society.
Further, it is learnt that in many Societies, the Managing Committees, who execute the documents with the Developers, do not possess any legal holding as they have never filed/nor aware of filing the Indemnity Bond in Form M-20 on a Stamp required under Section 73(1AB) and Rule 58A of the Maharashtra Cooperative Societies Act 1960.
The members who fail to execute such Bonds within the specific period are deemed to have vacated his
office as a member of the committee and no legal effects can be given to the documents executed by them
with the Developers.
STAGES OF REDEVELOPMENT
1 Offer letter to the society
2Terms and conditions with the society
3 Agreement with the society
4Sanction from MCGM in favor of the society
5 Loading of TDR in the society’s name
6 Obtaining the IOD
7 Shifting of the members
8 Demolition of the building
9 Obtaining the CC
10 Construction of the new building
11 Obtaining the OC
12 Shifting the old members
1. Offer letter to the society: The Housing Society is required to advertise in 2 leading newspapers inviting
the sealed tenders from the Developers and a Redevelopment Committee is formed to shortlist atleast 3
Developers on merits and the comparative data is placed before the SPGM for final selection. The
selected Developer is informed accordingly and his terms are invited in writing as an Offer letter to the
2. Terms and conditions with the society: The first step towards the re-development is agreeing on the basic
terms and conditions between the members and the Developer. The broad terms and conditions will
include extra area, corpus money, shifting charges, alternate accommodation, time of re-development,
amenities in the new building, etc.
Finalizing the plans with members: After due consultation with all the members, the plan will be made to
suit the requirements of the existing members and will be approved by them before applying for sanction
3. Agreement with the society: The execution of the development agreement will be done once the above
two points have been cleared by both the parties and after the draft copy of the agreement have been
approved by the solicitors of both the parties. It is possible to appoint a common solicitor so as to reduce
the time in execution of the document
4. Sanction from MCGM in favor of the society: After the execution of the development agreement, plans
are put up for sanction from MCGM with regards to the entire layout as well as the concession plans in
favor of TWO FSI (i.e. plot area + TDR purchased from open market). This step makes the society feel
safe and confident towards the Develop
5. Loading of TDR in favor of the society: On receipt of the plans from MCGM approving the loading of
TDR, the Developer will purchase the TDR from the open market in the name of the society and get the
same deducted and loaded from MCGM. This step is taken with the intention of making the society feel
secure about the entire development process
6.Obtaining the IOD: After the TDR is loaded, the IOD is obtained from the MCGM, the Developer then
starts fulfilling all the conditions as mentioned in the IOD before obtaining the Commence Certificate
7.Shifting of the members: The members will feel lot more confident after the IOD is been obtained from
the MCGM towards the entire development of TWO FSI. The members will now shift into their alternate
accommodation as a pre-requisite before demolition of the building which is a must before obtaining the
CC from MCGM
8. Demolition of the building: Once the members have shifted into their alternate accommodation, the
demolition of the building will take place either all the wings simultaneously or phase wise depending
upon the scheme of re-development. Usually about three months are given to the members from the date
of execution of the development agreement before asking them to shift to the alternate accommodation
9.Obtaining the CC: The IOD approval and demolition of the building will be followed by the issue of the
CC (plinth level) by the MCGM which shall enable the Developer to start the construction work and after
the plinth lines are verified by the MCGM officers, the further CC is granted for the complete building
10. Construction of the building: The building construction work will began in full earnest as per the
approved plans by the MCGM taking into consideration the various safety factors to be considered during
the construction work. The quality and the amenities will be provided as per agreed terms and conditions
11. Obtaining the OC: The last step before the construction work is termed as complete is obtaining the
Occupation Certificate enabling the Developer to allot the occupation to the old as well as the new
12. Shifting the old members: On receipt of the Occupancy Certificate the Developer can lawfully allow the
possession of the flats to be taken over by their owners
DUTIES AND FUNCTIONS OF THE DEVELOPER
A. The Developer to demolish the building existing in the plot and construct new multi storied buildings
taking into account the earthquake resistant factors as directed by The Municipal Corporation of Greater
Mumbai. The new building should have stilt for car parking and should consist of _____ stories as per
approved plans. The final plans are to be prepared after due consultation with the managing committee
and understanding their requirements.
B. The Developer shall be responsible to obtain all the necessary approvals from The Municipal
Corporation of Greater Mumbai and all other statutory and Government offices and departments which
will include the following:
1. Development Planning Remark or Town Planning Remark: MCGM (Dev. Dept.)
2. Survey of the entire plot with regards to the area and topography of the plot, existing plot
boundary and existing structures: Developer’s Architect.
3. Intimation of Disapproval (IOD): MCGM
4. Property Tax Assessment NOC: MCGM (Assessment Department)
5. Hydraulic Engineer No Objection Certificate: MCGM (Hydraulic Department)
6. Storm Water Drainage No Objection Certificate: MCGM
7. Sewerage No Objection Certificate: MCGM
8. Traffic Dept of Municipal Corporation of Greater Mumbai No Objection Certificate: MCGM
9. Urban Land Ceiling NOC: Competent Authority in Collector's Office
10. Tree No Objection Certificate: MCGM (Tree Authority)
11. Non-Agricultural Permission: Collector's Office
12. Civil Aviation No Objection Certificate: Airport Authority of India
13. Pest Control No Objection Certificate: MCGM (PCO)
14. MTNL No Objection Certificate: MTNL
15. Chief Fire Officer's No Objection Certificate: Fire Department Office
16. Commencement Certificate: MCGM
17. Lift Inspection No Objection Certificate: Inspector of Lifts, PW
18. Occupation Certificate (OC):MCGM
19. Water Connection Certificate under section 270A:MCGM
20. Drainage Completion Certificate: MCGM (Water Department)
21. Building Completion Certificate (BCC):MCGM
22. TDR Loading: MCGM
23. Building Demolition Work: Contractor appointed for demolition work
24. Soil Testing Report: The Concerned Laboratory
Please ensure to collect all the listed certificates from the Developer/Developer as the same must be with
the custody of the Housing Society once the redevelopment of the property is completed and the
occupancy certificate is issued by MCGM to rehouse the members.
C. The Developer should provide the following infrastructure after the completion of the re-development
1. Complete paving around the building finished with suitable materials
2. Storm Water Drain
3. Sewerage lines
4. Security arrangements
5. Garden and landscaping (wherever possible)
6. Pipe gas line (as per availability)
7. Internet facility (as per availability)
8. Society office
9. Adequate car parking spaces
The Developer has to provide extra area over and above the existing carpet area to all the members free
of cost in the newly constructed building. The flower bed as open balcony area should be provided as
permitted by The Municipal Corporation of Greater Mumbai. (Area will be approx. sq.fts.)
D. The Developer should pay the society/individual member, a corpus fund of Rs……..towards granting
of development rights. The above amount is helpful in paying all outgoings of the existing members in
the newly constructed flats. The corpus amount is worked out on the basis of Rs……..per sq.fts on the
existing carpet area.
E. The Developer should provide displacement compensation towards temporary alternate
accommodation to the affected members during the construction work at the rate of Rs…… per sq.ft on
the existing carpet area. The compensation has to be paid from the time the vacant possession is given by
the members for demolition till the construction of the new building/s is/are complete and the peaceful
possession of the new flats given by the Developer.
F. The society shall accept and admit the prospective/additional flat owners of the newly constructed
building/s as members of the society and treat them at par with existing members.
G. The Developer should prepare a tentative layout of the new building which has to be shown to the
members as and when required.
H. The Developer may tie up with leading financial institutions and banks and arrange for necessary
approvals for housing loans for the existing members and prospective clients.
I. The Developer should complete the entire re-development work within a period of ___ months or as
agreed with the Society after all the legal formalities and Municipal approvals are obtained. The initial
Municipal approvals will take about three months depending upon the existing rules and regulations
governing the re-development work.
STANDARD LIST OF AMEMITIES
Structure: The structure would be designed as Multi Frame Structure of RRC with provisions of Earth
Quake resistance features.
Elevation and Planning: Exquisitely designed elevation features may be provided along with careful and
detailed planning with plenty of light and ventilation in each rooms and minimum wastage space with
proper co-ordination of all rooms. The building may be provided with sand faced plaster on the external
face water proofing plaster and chicken mesh should be used as required
Entrance Lobby: The entrance lobby may be elegantly designed with Granite tile and POP false ceiling.
Doors: All the doors should be provided with Marine Flush Doors and CP frame with cover mouldings.
The main door must be provided with good quality night latch, safety chain, tower blot and attractive
handle. Internal doors may be provided by cylindrical mortise type locks.
Windows: All the windows of rooms and toilets should be provided with marbles frames with designed
mouldings. Heavy section powered aluminum sliding windows with 5 mm tinted glass may be provided
with imported bearings and fittings.
Plaster of Paris: Beautifully designed cornice has to be provided in living room. Walls of all the rooms to
be finished with POP panning and grooves to be provided on top of the skirting
Electric work: All the electric wiring work must be done as per the norms of Reliance Energy using 1/18,
3/20, and 7/20 flexible wires with use of MCB and ELCB for safety of the flat owners. Latest available
switches of reputed company must be provided. Extensive electric layout comprising of the following
points to be provided:
1. Spot Lights (living room and bed room)
2. Tube lights
4. A.C. (living room and bed room)
6. Exhaust fans
7. Aqua guard
9. Washing machine
11. T.V. cable
12. Gas pipe line (if available)
14. T.V. cable
15. Gas pipe line (if available)
Plumbing: All the plumbing pipes, fixtures and fittings should be strictly as per IS Norms. CP plumbing
fixtures (ESS or JAGUAR) should be provided in all toilets with matching sanitary ware of reputed
company. Plumbing points should comprise of wall mixtures, showers, taps, washing machines and aqua
Flooring and Tiling: Marble or granite or granite flooring should be provided with matching skirting of
3”. Toilets should have full dado height of coloured glaze tiles of reputed company of Indian or imported
make with designer borders and motifs.
Kitchen: Granite kitchen platform comprising of cooking and serving platforms may be provided with
moulded facia patti and vertical sides. Stainless steel sink has to be provided.
Colour: The entire flat should be painted with Synthetic enamel paint including doors and ceilings. The
external walls of the buildings must be painted with good quality cement paint.
Lift: Lift of OTIS/Johnson make may be provided with all the safety features.
Terrace: The terrace should be finished with china chips and high parapet wall with corner lights and
Compound wall and gates: New compound wall should be constructed with proper design and sufficient
electric points. M.S. main gate should be provided for safety.
Paving: The entire compound wall should be paved with concrete and finished with heavy duty checkered
The task of satisfactory completion of redevelopment of any Housing Society and to get back their
members in their dream houses is not difficult provided the Office Bearers and the Committee Members
are honest and justify their respective posts in the welfare and wellbeing of the members of the Society.