What is Redevelopment
- Redevelopment is the process of demolishing old building and constructing a new one.
- Reconstitution of the Society
- It is an exercise of change
Why to Redevelop
Aging Infrastructure: Over time, buildings can deteriorate, it becomes more cost-effective to demolish and rebuild rather than continually patch up the existing structure.
Modernization: Redevelopment offers the opportunity to incorporate modern architectural and construction practices, including energy-efficient features, advanced security systems, and updated amenities.
Increased Space: Redevelopment allows for the construction of additional floors or units, leading to increased living space.
Legal and Regulatory Changes: New laws and regulations might provide incentives for redevelopment, such as increased Floor Space Index (FSI) or additional development rights.
Technological Advancements: Redevelopment can incorporate the latest technological advancements, such as smart home systems and eco-friendly infrastructure.
Safety and Structural Integrity: Aging buildings might not meet current safety standards. Redevelopment allows for structures to be built according to the latest safety codes.
Increased Property Value: Well-executed redevelopment can lead to increased property values, benefiting both current and future residents.
Improved Amenities: Redevelopment can provide the chance to upgrade common amenities like parks, recreational areas, parking spaces, and community halls, enhancing the overall quality of life for residents
Financial Benefits: In some cases, housing societies can partner with developers who offer compensation, new housing units, or a combination of both in exchange for the right to redevelop the property.
How to Redevelop
Call a Special General Body Meeting (SGM)
As per the new rules of redevelopment of society the managing committee should convene a special meeting of the members to discuss the redevelopment project. The bye-laws state that 51% of the total number of members should be in agreement with the redevelopment project before it can be officially undertaken.
Appointment of Architects/Project Management Consultants (PMC) for project report
The Committee should invite bids from at least 5 architects/PMC and present their quotes to the members before zeroing in on one of them in another SGM. They should be empaneled with the government or a legitimate authority and have a good reputation in real estate development. The members are allowed to give valid inputs and suggestions throughout the process.The architect/PMC will present to the committee a Project Feasibility Report. This report considers factors such as Floor Space Index (FSI) and Transfer of Development Rights (TDR) with respect to total residential area, common spaces, gardens, etc. The Report is made available to all members of the society and suggestions are invited before any approvals are made.
How to Redevelop
Appointment of Architects/Project Management Consultants (PMC) for project report
The Committee should invite bids from at least 5 architects/PMC and present their quotes to the members before zeroing in on one of them in another SGM. They should be empaneled with the government or a legitimate authority and have a good reputation in real estate development. The members are allowed to give valid inputs and suggestions throughout the process.
The architect/PMC will present to the committee a Project Feasibility Report. This report considers factors such as Floor Space Index (FSI) and Transfer of Development Rights (TDR) with respect to total residential area, common spaces, gardens, etc. The Report is made available to all members of the society and suggestions are invited before any approvals are made.The Report is made available to all members of the society and suggestions are invited before any approvals are made.
Choose a developer
The Architect/PMC prepares a Tender document to receive competitive bids from developers.
The Architect/PMC makes a comparative study of the tenders considering factors such as financial expenses, market reputation, technical soundness, successful projects of each developer and shortlist at least five. In accordance with the redevelopment rules, one of them is selected by the 3/4th majority of the members and the project can be initiated after making an agreement with the selected developer.
Redevelopment vs Self Redevelopment
Model | Redevelopment | Self Redevelopment |
| Process | SGM | SGM |
| Documentation | Same | Same |
| Redevelopment Process | Agreement with Developer | Appointment of Architect, Contractor |
| Committee | Single – Redevelopment committee | Sales & Marketing, Finance, Construction, Purchase |
| Compliance | Builder / Developer post DA | Society with assistance from Lawyers, Architect, |
| Finance | Builder/Developer | Self Finance/sale from saleable component/Bank loan |
| Benefits | Limited to additional space, Rent, Corpus | Net profit from project to be divided among members in the form of cash or additional space. |
Legalities of Redevelopment
SGM – Conducting the SGM and approval of minimum number of members.
Proper conduct of all procedures prior, during and after SGM.
No objection/litigation from any members against society for redevelopment.
Any valid objection from any members must be cleared at SGM stage.
Documentations & Compliance
Legal documents needed are society registration certificate, conveyance deed (necessary for self-development projects), sale deed, title certificate, a certified property card (showing ownership in the name of society), the original building plan, structural audit report, redevelopment agreement, copy of new approved plan, flat-wise carpet area list, Development Plan (DP) remark (details of the land and its surrounding area), electricity bill, water bill, and all other legal documents pertaining to the land and the buildings.
How We can Help
1.Navigating Regulations: Redevelopment projects are subject to a multitude of regulations. We can help interpret and apply these regulations appropriately to ensure compliance throughout the project.
2.Mitigating Risks: Our team can identify potential legal risks associated with the redevelopment process. By addressing these risks early on, societies can minimize the likelihood of disputes, delays, fines, and other legal complications that could arise during the project.
3.Securing Permissions and Approvals: Redevelopment often requires obtaining various permits and approvals from local authorities and governing bodies. Our guidance ensures that all necessary paperwork is completed accurately and submitted on time, preventing unnecessary delays.
4.Contractual Clarity: Developing contracts with Builders or in case of self redevelopmen, with contractors, architects, and other parties involved in the redevelopment is essential. Our experts can draft clear and comprehensive agreements that outline rights, responsibilities, payment terms, and dispute resolution mechanisms, protecting all parties involved.
5.Property Rights and Ownership: Clarifying property ownership and rights is critical before embarking on redevelopment. We can help verify ownership, address any legal restrictions, and ensure that necessary consents are obtained from all stakeholders.
6.Public Consultation and Transparency: In cases where public consultation is required or advisable, legal experts can guide societies in conducting meaningful consultations, addressing community concerns, and maintaining transparency throughout the process.
7.Financial and Tax Implications: Redevelopment projects can have financial and tax implications, such as property tax assessments, capital gains tax, and financing arrangements. Our Legal professionals can offer insights into managing these financial aspects effectively.
8.Dispute Resolution: In the event of conflicts or disputes arising during the redevelopment process, we can provide strategies for resolution, whether through negotiation, mediation, arbitration, or litigation.
Location
25, Dimple Arcade,
Thakur Complex, Kandivali E
Mumbai – 400101
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