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Redevelopment Procedure


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.


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

from MCGM

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


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.

Compiled by Prashant Uikey (This email address is being protected from spambots. You need JavaScript enabled to view it.) Page |5

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.


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

3. Fans

4. A.C. (living room and bed room)

5. Geysers

6. Exhaust fans

7. Aqua guard

8. Mixers

9. Washing machine

10. Refrigerator

11. T.V. cable

12. Gas pipe line (if available)

13. Refrigerator

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.

Compiled by Prashant Uikey (This email address is being protected from spambots. You need JavaScript enabled to view it.) Page |7

Terrace: The terrace should be finished with china chips and high parapet wall with corner lights and

water points.

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.


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