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.
