Phases of Redevelopment

The redevelopment of a housing society or old building is generally carried out in well-defined phases. Each phase involves legal, financial, and construction activities that must be carefully followed. Here are the main redevelopment phases explained in detail:

1. Feasibility Study & Initial Decision

  • Conduct a structural audit to check whether the building is dilapidated, unsafe, or uneconomical for repairs.

  • Society’s Managing Committee (MC) places the redevelopment proposal before members.

  • Call a Special General Body Meeting (SGBM) to pass a resolution for redevelopment.

  • Appoint a Project Management Consultant (PMC) or Architect to prepare a feasibility report.

  • Feasibility report covers FSI potential, TDR benefits, member entitlement (carpet area), corpus, rent, and shifting allowance.

2. Tendering & Developer Selection

  • Issue public tenders or invite bids from reputed developers.

  • Evaluate offers based on financial package, track record, and timelines.

  • PMC prepares a comparative chart of offers.

  • Conduct presentation and Q&A sessions with shortlisted developers.

  • SGBM is held to finalize the developer by majority resolution.

  • Execute a Letter of Intent (LOI) / MOU with the chosen developer.

3. Pre-Construction Approvals & Agreements

  • Draft and register a Development Agreement between society and developer.

  • Execute an Individual Permanent Alternate Accommodation Agreement (PAAA) with each member.

  • Obtain Intimation of Disapproval (IOD), Commencement Certificate (CC), and other statutory approvals from BMC/MHADA/SRA.

  • Society opens a joint account with developer for corpus/rent transactions.

  • Collect rent advance, corpus fund, and shifting charges from developer.

  • Members vacate flats and hand over possession after receiving financial commitments.

4. Construction Phase

  • Demolition of existing structure and site clearance.

  • Developer commences construction as per approved plans.

  • Regular monitoring by PMC and society representatives.

  • Monthly site visits and reporting on progress, quality, and timelines.

  • Developer pays monthly rent (or provides transit accommodation) to members until possession.

5. Repossession / Handover

 

  • On completion, developer obtains Occupation Certificate (OC).

  • Members are allotted new flats as per entitlement.

  • Society takes possession of new building along with amenities.

  • Developer hands over corpus balance (if pending), conveyance deed, and compliance documents.

  • Formation of a new Managing Committee if needed, with updated records and agreements.