FAQs

There should be no hidden expenses. All costs of construction, approvals, rent, shifting charges, and transit stay are borne by the developer. Members may only have to bear personal costs such as registration charges for extra purchased area or optional interior upgrades.

No GST is payable on rehab flats received free by members. GST is applicable only if members purchase extra area. In that case, GST is charged on the cost of the additional carpet area. GST on sale of new flats to outsiders is borne by the builder, not the society members.

On the Development Agreement (DA), the society pays ₹100 stamp duty if possession is not transferred. If possession of land/building is given to the builder, then 5% stamp duty is payable. Members do not pay stamp duty on free rehab flats but must pay stamp duty on extra purchased carpet area.

Registration fee is not applicable on free rehab flats allotted to members. It applies only on extra purchased carpet area. The member has to register the purchase agreement for the additional space and pay the standard registration fee as per the Maharashtra Stamp Act.

Yes, members are usually allowed to purchase additional carpet area at the pre-decided construction cost. This cost is fixed in the DA and cannot be arbitrarily changed later. Payment is made directly to the builder, and GST and stamp duty apply.

Builders generally charge a floor rise premium for higher floors, usually ₹50–200 per sq.ft. depending on market rates. This must be mentioned in the DA so that members know the charges in advance and avoid disputes.

Yes, it is essential. The DA should have a clear list of amenities like lifts, CCTV, fire safety, intercom, water systems, and finishes. Without this, the builder may deliver minimum specifications. The society must insist on a written list of promised amenities.

As per BMC and MHADA rules, the clear height of new flats is normally 9–10 feet from floor to ceiling. This ensures good ventilation and light. It should be confirmed in the approved building plan.

Yes, every redeveloped society must have a dedicated office space for management. This is usually located on the ground floor or podium level and must be clearly marked in the DA and approved building plans.

Individual flats usually get modular kitchens, branded sanitary fittings, vitrified tiles, concealed wiring, intercom systems, and fire safety systems. These must be clearly listed in the DA. Builders sometimes also provide air-conditioner points, geysers, and balconies depending on project cost.

The builder must provide a society office, compound wall, entrance lobby, lifts, firefighting systems, security cabin, parking facility, rainwater harvesting, and solar power systems. These are common amenities that benefit the entire society.

In cluster redevelopment, multiple societies share clubhouse, garden, children’s play area, gym, jogging track, parking, and open spaces. Maintenance costs are also shared proportionately. These must be governed by a federation or apex body of societies after redevelopment.

Once the project is completed and handed over, control of all common amenities must remain with the society or federation. The builder should have no rights after handing over possession. This condition must be written into the DA to prevent misuse.

The construction period is usually 30–36 months from the date of obtaining all approvals (IOD + CC). The DA should have a penalty clause requiring the builder to pay extra rent if there is a delay beyond this period.

The bar chart should cover the timeline for documentation (3–6 months), IOD (6–9 months), Commencement Certificate (3–6 months), construction stages (foundation to finishing – 18–24 months), and Occupation Certificate (3–6 months). Societies must insist on periodic progress updates.

Under cluster redevelopment with higher FSI and TDR, towers can go up to 20–40 floors depending on layout size and approvals. In your case, with 48,000 sq.mt, 3488 flats, new high-rise towers are expected. The exact height depends on sanctioned plans.

The number of towers depends on the master layout plan sanctioned by MHADA and BMC. Typically, the builder provides a tentative layout and 3D design in the project proposal. The final number will be based on FSI consumption and open space rules.

Key precautions:

• Appoint an independent Project Management Consultant (PMC)
• Get legal due diligence of builder’s title and financial capacity
• Ensure clear DA with rent, corpus, area, timelines
• Obtain Registrar approval before signing DA
• Monitor construction progress regularly.

Extra area can be purchased at a pre-decided rate per sq.ft. fixed in the DA. The member must register a supplementary agreement and pay stamp duty and GST. The builder will include the extra area in sanctioned plans, ensuring compliance with FSI/TDR rules.

Yes, amalgamation of two flats (rehab + purchased) is permitted under BMC rules, but only with prior sanction of MHADA/BMC. A common entrance can be provided, but the flats will have separate agreements. The builder must show this option in sanctioned plans.

Yes, in all redeveloped societies, three-phase electricity meters must be provided to each flat. This ensures better load distribution and supports high-power appliances like ACs, geysers, and washing machines. It should be mentioned in the DA.

Generally, the rehab flats are not taxable since members are exchanging property rights. However, rent compensation is taxable as income in the hands of members. Corpus fund may be treated as capital receipt, but its taxability depends on structuring. Proper planning with a CA is essential.

If the society receives corpus or rent in its own account and then distributes it, it may be liable to pay Income Tax. To avoid this, corpus/rent is usually paid directly to individual members. Societies should seek professional tax advice before signing the DA.

No GST is applicable on free rehab flats. GST at 5% or 12% applies only if members purchase additional carpet area. The builder pays GST on sale of free-sale flats to outsiders. Society members should not bear any GST burden on their entitled rehab flats.

If members sell their rehab flat after 5 years of possession, no GST is payable. If sold within 5 years, GST may apply depending on whether the flat has an Occupancy Certificate. Once OC is received, GST is not applicable on resale.

Rent should match prevailing market rates in the area. For example, for 225 sq.ft. flats in Mumbai suburbs, rent of around ₹30,000/month is reasonable. The DA should clearly state rent escalation (usually 10% every 11 months) and penalty rent for delays.

The corpus is generally fixed at ₹1,000–₹1,500 per sq.ft. of existing carpet area. For 225 sq.ft. flats, corpus of about ₹2.25–3.5 lakh may be expected. This is paid one-time to members at the time of possession of new flats.

Rent received is taxable as “Income from Other Sources”. Corpus is treated as a capital receipt and may not be taxable if it is linked to surrender of rights. However, if treated as income, it could be taxed. Proper structuring in the DA and CA advice is critical.

The best approach is for rent and corpus to be paid directly to members instead of the society. This avoids taxation at society level. Members can then declare rent in their ITR individually. Corpus can be structured as a security deposit or capital receipt to minimize tax liability.

Yes, many developers allow adjusting the cost of extra area against rent and corpus. This reduces the immediate cash flow and may help minimize taxable income. However, the adjustment must be clearly documented in the agreement to avoid disputes with the tax department.

Home loan rates in India are currently around 8–9% per annum. Banks extend loans for purchasing additional carpet area. The builder should provide project approval from leading banks to ensure members get loans easily at standard rates.

Usually, large developers tie up with nationalized banks (SBI, Bank of Baroda, etc.) and private banks (HDFC, ICICI, Axis). MHADA also empanels certain banks for cluster redevelopment projects. Societies should ask the builder to provide NOCs and bank tie-ups in writing.

Banks typically finance up to 70–80% of the agreement value of additional area purchased. The remaining 20–30% must be paid as margin money by the member. Loan eligibility depends on income, CIBIL score, and bank policy.

Stamp duty is payable on the Ready Reckoner value or agreement value of the additional area, whichever is higher. It is usually 5% in Maharashtra plus registration fee. Women purchasers get a 1% concession on stamp duty.

If the DA is signed without handing over possession to the builder, stamp duty is just ₹100. If possession of land/building is given, then stamp duty is about 5% of the agreement value. This cost is generally borne by the developer, not the society.

Each society should sign a separate Development Agreement with the builder. In cluster projects, there can also be a common MoU covering shared amenities, but DA must be society-specific to protect individual rights.

The builder must apply to BMC/MHADA for plot amalgamation by submitting layout plans, title documents, and society resolutions. Amalgamation is essential for cluster redevelopment to use higher FSI. Only after approval can the project proceed.

Key features include:

• Extra carpet area (33% + fungible)
• Corpus fund & rent compensation
• Modern amenities (lifts, security, parking, clubhouse)
• Stronger buildings with fire safety and RCC structure
• Better town planning with open spaces and greenery.

Flat allocation is usually decided by society resolution. Many societies use a lottery system or floor-wise draw to ensure fairness. The builder can only implement what society finalizes. The procedure should be documented before signing DA.

As per DCPR 2034 and BMC parking rules, each rehab flat is entitled to at least one parking space, provided space is available. Additional parking can be allotted on payment basis. The DA must specify the parking policy clearly.

Yes, subject to availability and BMC norms, members can purchase additional parking slots at a rate fixed in the DA. The payment should be transparent and receipts issued. Parking allotment must be done fairly through a draw or seniority list.

Builders may charge a floor rise premium for higher floors, usually ₹50–200 per sq.ft. The exact rate must be fixed in the DA and cannot be changed later. Members should clarify this before signing the agreement to avoid disputes.

Yes. Under the Maharashtra Co-operative Societies Act and GR 2016, Registrar’s approval is mandatory before executing a Development Agreement. Without this, the agreement is not legally binding. The society must submit resolutions, member consent, and legal documents to the Registrar.

Yes. The DA must include a termination clause giving society the right to cancel the agreement if the builder fails to honor commitments or delays construction. This protects members and allows appointment of another developer if required.

Yes. The society should ask for a specimen copy of the builder’s agreement with new purchasers. This ensures that builder is not offering outsiders better amenities or unfair advantages that may harm existing members’ rights.

Yes. If the builder fails to obtain approvals or delays statutory/contractual obligations, the society can terminate the DA as per the termination clause. The builder may also be liable to pay damages, and the society can appoint a new developer.

The bar chart should include:

• Approvals (IOD/CC): 6–12 months
• Foundation + RCC work: 6–9 months
• Brickwork + finishing: 12–18 months
• OC + possession: 3–6 months
  This must be shared with society and updated regularly.

In such cases, the builder must obtain NOCs from the respective banks before demolition. The society should coordinate with banks, and builder usually pays for legal processing charges. Members must not be penalized for having existing loans.

The DA should clearly state that the builder is responsible for obtaining NOCs from banks where flats are mortgaged. This avoids delays and ensures smooth redevelopment. The society must verify that the builder has taken on this responsibility.

The society must hand over title deeds, conveyance certificate, property card, approved layout, society registration documents, and member list with carpet areas. Without these, the builder cannot obtain IOD/CC. All documents must be certified copies to protect society’s originals.

A title clearance certificate ensures that the society has clear ownership rights and no legal disputes on land. It is essential for redevelopment because without it, banks will not finance the project and BMC/MHADA will not approve building plans.

The architect must review the FSI potential, TDR availability, reservations on land, road width, and open space norms. Only after confirming these, can the builder accurately calculate saleable area and member benefits. This avoids false promises.

Builders can redevelop MHADA layouts, cess buildings, and BMC-owned plots under DCPR 33(5), 33(7), 33(9), or SRA policies. Each has specific rules. In your case, it is a MHADA layout (33(5)) with cluster benefits (33(9)).

Legal heirs must provide a death certificate, succession certificate/probate of will, legal heirship certificate, and society nomination records. These documents ensure that the flat rights pass smoothly to the rightful heir during redevelopment

Yes, if the building is declared dangerous/dilapidated (C1 category), then fast-track approvals and sometimes additional FSI are given. MHADA and BMC prioritize redevelopment of unsafe structures for safety reasons.

Yes, apart from fast-track approvals, C1 buildings get priority rent, expedited permissions, and sometimes additional corpus. Demolition can be carried out immediately after certification, which speeds up the entire process.

As per Maharashtra Stamp Act amendments, women buyers get 1% concession in stamp duty on property transactions. So if a female member purchases additional area, she pays reduced stamp duty compared to male members.

Yes, filing a nomination form is strongly advised. It ensures that if a member dies during redevelopment, the flat and compensation (rent/corpus) can smoothly transfer to the nominee without legal hurdles.

The flat will be transferred to the nominee/legal heir after verifying death certificate, nomination form, or succession certificate. The builder will execute the Permanent Alternate Accommodation Agreement (PAAA) in the name of the heir. This must be supported by society records.

All communication should be through the society managing committee, PMC, and WhatsApp/email groups. Regular circulars must be issued to members regarding rent payments, project progress, and timelines. Transparency is key to avoid mistrust.

The builder must provide monthly/quarterly progress reports with photos and bar chart updates. Site visits should be arranged for society representatives. This ensures members know the actual pace of work.

Yes, societies should create an official WhatsApp group including builder, PMC, and office bearers. This helps quick resolution of doubts and provides transparency. However, all formal communication should still be documented in writing.

Yes, many builders now provide video/photo updates every 2–3 months. This should be part of the DA so members can track progress even if they cannot visit the site.

Yes, a PAAA draft must be provided before signing. It should include details of carpet area, corpus, rent, parking, amenities, and timelines. The PAAA is registered with the Sub-Registrar and protects the member’s rights.

Pocket terraces are allowed only if approved in sanctioned plans. They are not guaranteed. Members should check whether the builder has proposed balconies/pocket terraces in the BMC plan before agreeing.

As per DCPR, terraces may be used for common amenities like jogging track, solar panels, or garden. The decision should be in the master layout plan. Builders cannot sell terrace space to outsiders.

Yes, builders normally install a centralized dish antenna or FTTH system to avoid multiple individual dishes. This ensures neat appearance and uninterrupted connectivity.

The builder must appoint a dedicated liaison officer as the single point of contact. Additionally, the PMC (Project Management Consultant) should coordinate between builder and society. This avoids confusion and ensures accountability.

The plinth level should be 2–3 feet above road level as per BMC rules. This prevents flooding during heavy rains. The society should confirm this in the sanctioned building plan.

Rent/compensation is usually paid monthly or 12 months in advance, depending on the DA. Many societies insist on advance rent for 12 months, renewable every year, to ensure security of members.

Transportation/shifting charges are normally paid once at the time of vacating (₹10,000–₹25,000 per flat). Some builders agree to pay shifting charges again when members return after completion. This must be written in the DA.