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How to Redevelop Your Housing Society in Mumbai: Complete Guide & Checklist

How to Redevelop Your Housing Society in Mumbai: Complete Guide & Checklist Tips And Tricks

3 min read

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Posted on- 10 Jun 2025

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Posted by- Admin

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How to Redevelop Your Housing Society in Mumbai: Complete Guide & Checklist

Thinking of redeveloping your old housing society? Whether you're hiring a developer or going for self-redevelopment, it's important to understand the full process. This guide breaks down each step in simple terms so your society can plan better and avoid costly mistakes.

Let’s get started! 

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1. Builder-Led Redevelopment: Step-by-Step Process (14 Stages)

Step

What Happens

1. Get Quotes

Society invites proposals from architects and PMCs (Project Management Consultants).

2. Hire Experts

Members vote and appoint the architect and PMC.

3. Building Survey

A technical survey is done. Documents and member details are collected.

4. Project Report

PMC prepares a report with details like FSI, construction plan, timelines, and budget.

5. Call for Tenders

PMC floats a tender; developers submit their offers.

6. Compare Offers

PMC compares all developer proposals and shares findings with members.

7. Check Developer Background

Visit their past sites, check financials, and reputation.

8. Shortlist Developers

Society narrows down to 2–3 developers for final review.

9. Final Selection

Minimum 51% of society members must approve the final developer.

10. Legal Agreements

Society signs a Development Agreement and gives Power of Attorney (POA) to the builder.**

11. Approve Plans

The Architect prepares new layout plans; society reviews and approves.

12. Govt. Approvals

Plans are submitted for approval by the municipal body and MahaRERA registration.

13. Temporary Shifting

Members shift to rented houses; old building is demolished.

14. Construction & Handover

Builder constructs new building, gets OC (Occupation Certificate), and hands over flats.

**When issuing POA (Power Of Attorney) to the developer, ensure that it is limited ONLY to issuing NOCs for new flat members applying for home loans. 

2. Self-Redevelopment: Step-by-Step Process (13 Stages)

Step

What Happens

1. Hire Key Experts

The society appoints an architect, PMC, legal and finance advisors.

2. Building Survey

Property documents and structural reports are collected.

3. Project Plan

PMC prepares a financial and construction plan.

4. Apply for Loan

Society applies for a redevelopment loan (e.g., from MHADA or co-op banks).

5. Finalise Layout

The architect prepares building layout to maximise carpet area and sale flats.

6. Invite Contractors

Tenders are floated for construction (not developers).

7. Select Contractor

Lowest and most qualified bidder is selected.

8. Submit Plans

The society submits plans to the authority and gets MahaRERA registration.

9. Fund the Project

Loan and member funds are collected.

10. Temporary Shifting

Members move to rented homes; demolition begins.

11. Construction Begins

The contractor works under PMC supervision to ensure quality and speed.

12. Sell Extra Flats

Society sells extra units to repay the bank loan.

13. Final Handover

Once OC is received, new homes are handed over, and loans are cleared.

Important Tips to Keep in Mind

  1. 👩‍⚖️ Appoint a Legal Expert Early
    Get every document—especially the Development Agreement and Permanent Alternate Accommodation Agreement (PAAA)—thoutoughly checked before you sign.

  2. 🏗 Choose the Right PMC
    A good Project Management Consultant ensures smooth planning, budgeting, and quality control.

  3. 📐 Insist on RERA-Compliant Plans
    Always demand MahaRERA-registered layouts and clarity on carpet area (ignore built-up or super built-up fluff).

  4. 📝 Record Minutes Religiously
    File minutes of every General Body Meeting and builder proposal—these notes are legal gold when disputes arise.

  5. ⏳ Don’t Rush the MOU
    An MOU is not a formality.  Before signing an MOU, make sure all important points like carpet area, rent, timelines, and penalties are clearly mentioned.

Frequently Asked Questions

Q1. What member approval is required to initiate redevelopment in Maharashtra?
A minimum of 51% of total members must provide written consent, as mandated by the 2018 Government Resolution.

Q2. How long is transit rent typically provided?
Developers usually offer 24–36 months of rent, with escalation for delays beyond the agreed period.

Q3. Can the society replace the developer after signing the agreement?
Yes, but it necessitates a special general-body resolution and legal termination proceedings—often involving the registrar or courts.

Q4. Are rehabilitation flats subject to GST?
Flats allotted to existing members are generally exempt from GST; sale flats attract GST at the prevailing rate. And if any extra area is bought by an individual over their eligible carpet area, then GST is applicable for the extra area purchased. 

Q5. How is additional carpet area for members calculated?
Utilise sanctioned FSI, incentive FSI (per DCPR 2034), and deduct common areas and sale components; your architect/PMC will finalise exact gains.

Q6. What recourse is available if the developer becomes insolvent mid-project?
Members can invoke RERA provisions to access project escrow funds and appoint a new promoter, subject to regulatory approval.

Final Thoughts

Redevelopment is a great opportunity to improve your living space and boost property value. But it's a long process and requires teamwork, expert guidance, and careful planning.

Start early. Stay transparent. And keep members updated at every step. 

Follow @thepropertist on Instagram for more useful real estate updates and society redevelopment tips!

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