of

Co-operative Housing Societies

Procedures & Checks
Based on laws applicable in Maharashtra

CA. S. H. Teckchandani

Consult, Collaborate & Co-operate for a better tomorrow

1
 CA. S. H. Teckchandani
A Chartered Accountant by Profession been a
Chairman (2011-12) Navi Mumbai Branch of
WIRC of The Institute of Chartered Accountant
of India. I have been associated with the branch
activities since inception of the Branch in various
capacities (i) Editor of “Chartered Accountants
Newsletter of Navi Mumbai Branch of WIRC of ICAI.”; (ii) Chairman of
Sub-Committee for Professional Development – Accounting &
Auditing Standards. (at Navi Mumbai Branch of WIRC). (iii) Member on
the Study Group for Formation & Development of Accounting
Standards by the Institute of Chartered Accountants of India on
“Disclosure & Presentation of Financial Instruments.” (iv) Also been a
Past Convenor of “Navi Mumbai CPE Study Circle.”

Rich hands-on working experience of over 30 years both as a

Practicing CA and in Industries in various positions. I have been
associated with the Real Estate in various capacities. Being a
Chartered Accountant proficient in process of Project appraisals,
Finalising Contracts and legal due diligence. My personal skill includes
Project Management, Leadership, Self-Driven and Hard Working.
Immense ability to work with cross-functional teams within an
organisation with a view to complete the task on hand. Being versatile
and adaptive having successfully performed multi-function role in the
organisation more particularly in Real Estate Sector.

Authoring the Book on “Guide to Redevelopment of Co-operative

Housing Societies, Procedure & Checks” was inspired with a view to
provide a suitable guide to the Real Estate Sector beneficiaries who
stake their entire life savings into buying the home and are now
stepping out to redevelop the same, by making them aware of the
risk and benefits of redevelopment. I have simplified the complex
topic of redevelopment in this small handbook, ensuring that all
important aspects are covered. This will help Housing Society
members to understand the essential procedures and checks of
redevelopment, raise pertinent questions, seek answers in reaching at
an informed decision on redevelopment in consultation with
professionals, while safeguarding their interest.

Consult, Collaborate & Co-operate for a better tomorrow

3
 From the Author’s desk
Guide to Redevelopment of Co-operative Housing Societies
Procedures and Checks based on Laws Applicable in Maharashtra
1st Edition December - 2024
Redevelopment of societies is a process that involves the demolition of
old and dilapidated buildings and the construction of new and modern
ones, with the aim of providing better living conditions and amenities to
the members of the society. Redevelopment of societies is a common
phenomenon in Maharashtra, especially in Mumbai and Navi Mumbai,
where the land prices are high, buildings are ageing with high repair cost,
risk to persons living in old buildings and the increasing demand for
housing with increasing family size.
Redevelopment of societies is not an easy task, as it involves various
legal, technical, financial, and social aspects. Moreover, there are many
challenges and risks involved in the redevelopment process, such as
selection of developers, delays in approvals, violations of regulations,
defects in construction, disputes amongst the members etc. Therefore,
it is important for the members of the society to be aware of the
procedures and checklist involved in the redevelopment of societies,
based on the laws applicable in Maharashtra. The book covers the
following topics:
Chapter 1: Introduction to Redevelopment of Societies: This chapter
provides an overview of the concept of redevelopment of societies. It
briefly explains the types of redevelopments such as the Self-
Redevelopment, Developer Redevelopment with Pros and Cons of each
type. The Author’s suggestion of adopting a mid-way approach.
Chapter 2: Initiation of Redevelopment Process: This chapter
describes the steps and procedures involved in initiating the
redevelopment process, such as obtaining the consent of the members,
conducting a structural audit, appointment of project management
consultants, preparing a feasibility report, calling for tenders, selecting
a developer, etc.

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Chapter 3: Documentation and Technical Terms this chapter gives a
brief description of documentation with key points to be incorporated in
each document.
Chapter 4: Important Checklist / Quires the Society Committee and
the Members should seek answers from the developers. The Author
recommends the checklist detailed in this chapter should be carefully
considered when proceeding with redevelopment.
Chapter 5: Various Schemes of Redevelopment: This chapter
highlights key points of alternative schemes available under the
Development Control regulations, understanding which of these
schemes could be beneficial for redevelopment.
Chapter 6: Execution of Redevelopment Project: This chapter
explains the steps and procedures involved in executing the
redevelopment project, such as obtaining the necessary approvals and
permissions, vacating the premises, monitoring the progress, handing
over the possession, etc.
Chapter 7: Legal framework this chapter briefly explains the legal
framework and the various laws and authorities involved in the
redevelopment process.
Chapter 8: Rights and Duties of the Members and the Developer: This
chapter discusses the rights and duties of the members and the
developer in the redevelopment process, such as the right to
accommodation, corpus fund, additional area, conveyance, etc. and
the duty to pay maintenance, stamp duty, registration fees, taxes, etc.
Chapter 9: Disputes and Remedies in Redevelopment Process: This
chapter deals with the common disputes and remedies in the
redevelopment process.
The book is based on the relevant laws, rules, regulations, circulars,
notifications, judgments, and orders applicable in Maharashtra, such as
the Maharashtra Co-operative Societies Act, 1960, the Maharashtra
Ownership Flats Act, 1963, the Maharashtra Regional and Town
Planning Act, 1966, the Development Control Regulations, 1991, the
Maharashtra Apartment Ownership Act, 1970, the Real Estate
(Regulation and Development) Act, 2016, etc. The book also provides
various checklists, and tips to help the members of the society in the
redevelopment process.
Consult, Collaborate & Co-operate for a better tomorrow
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The book is intended to serve as a handy reference and a guide for the
members of the society who are interested in or are undergoing the
redevelopment of their society. However, the book is not a substitute for
professional advice or legal opinion, and the readers are advised to
consult their Chartered Accountants, lawyer, architect, engineer or any
other expert before taking any decision or action in the matter of
redevelopment of their society.
The author extends heartfelt gratitude to those who provided invaluable
insights during the finalization of this book, particularly to Architect D.
D. Bhagwat, Advocate Vijay Kakwani, CA. Sreekumar Nair and CA Meher
Masand for their noteworthy contributions.
Consult, Collaborate & Co-operate for a Better Tomorrow.

CA. S. H. Teckchandani
PS: Kindly let us have your views on the book by email to
[email protected]
.

Consult, Collaborate & Co-operate for a better tomorrow

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 Table of Contents
From the Author’s desk .......................................................................... 4
Table of Contents .................................................................................. 7
Chapter 1: Introduction to Redevelopment of Societies ................... 11
1) Need for Redevelopment .............................................................. 11
2) Self-Development vs Developer Redevelopment ............................ 11
3) Means of financing Self Redevelopment ........................................ 12
4) Pros and Cons of Self Redevelopment ........................................... 12
5) Pros and Cons of Developer/ Builder Redevelopment ..................... 16
6) Developer-Contractor Redevelopment .......................................... 18
Chapter 2: Initiating the Redevelopment Process ............................ 21
1) Government Guidelines for the Redevelopment ............................. 21
2) Society Approval Process before Redevelopment ........................... 22
3) Checks necessary at each step. .................................................... 25
4) Project Management Consultants appointment ............................. 33
5) Steps required after appointment of PMC:...................................... 35
Chapter 3: Documentation & Technical terms ................................. 37
1) Project Management Consultant Contract ..................................... 37
2) Feasibility Report (FR) ................................................................... 38
3) Tender Notice ............................................................................... 39
4) Tender Form ................................................................................. 39
5) Developer Selection ..................................................................... 40
6) Development Agreement (DA) ....................................................... 42
7) Power of Attorney (POA) ................................................................ 44
8) Permanent Alternative Accommodation Agreement (PAAA) ............. 47
9) Other Documents, where so needed ............................................. 47
10) Important technical terms ............................................................ 47
Chapter 4: Important Checklist ...................................................... 53
1) Redevelopment approval process Checklist....................................... 53
2) Pre-tender & Pre-Builder Finalisation Checklist. ................................. 59
3) General time frame for Planning Activities .......................................... 67
Chapter 5: Various Scheme for Redevelopment............................... 69
1) Regulation 30(A) Computation of maximum permissible FSI/BUA. ... 69
2) Regulation 31(1) Area exemption from FSI ...................................... 69
3) Regulation 31(3) – Fungible FSI: ..................................................... 70
4) Regulation 32 - Transfer of Development Rights (TDR) ..................... 71
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 5) Regulation 33 and sub-Regulations – Additional FSI .........................72
6) Regulation 33(5) – Redevelopment of Housing schemes of MHADA. .72
7) Regulation 33(6) – Redevelopment of Buildings destroyed by fire or
collapsed or demolished. ...................................................................... 73
8) Regulation 33(7) - Redevelopment of Cessed Buildings in the Island
City or declared unsafe. ........................................................................74
9) Regulation 33(7)(A) - Redevelopment of buildings in suburbs declared
unsafe/dilapidated and existing authorized non-cessed tenant occupied
buildings in Mumbai City. .......................................................................76
10) Regulation 33(7)(B) Additional FSI for Redevelopment of Existing
residential housing societies. ................................................................77
11) Regulation 33(9) - Cluster Redevelopment Scheme (CDS) ...............78
12) Regulations 33(19) – Additional FSI for Commercial user in CBD or plot
situated in Residential or commercial zone or converted from Industrial
Zone..................................................................................................... 81
13) Regulation 33(20) - A ordable Housing(AH)/ Rehabilitation &
Resettlement (R&R) ..............................................................................82
14) Regulation 10.10 Applicable to Navi Mumbai...................................83
Author’s Perspective .......................................................................86
Chapter 6: Project Execution........................................................... 88
1) Demolition of the existing building ..................................................88
2) Construction of the new building ....................................................88
3) Completion of the new building ......................................................90
4) Developer handover of all approved plans to Society .......................90
5) Procedures Post Redevelopment ................................................... 91
Chapter 7: Legal Framework ........................................................... 92
1) Maharashtra Co-operative Societies Act (MCSA) ............................. 92
2) Maha-RERA................................................................................... 94
3) Defect Liability under MahaRERA ...................................................96
4) Development Control Regulations .................................................. 97
5) Income Tax - Taxability of Members & the Society ............................ 98
6) Goods & Service Tax (GST) ........................................................... 106
7) Stamp Duty & Registration of Documents ..................................... 114
8) The MHADA Scheme: .................................................................. 117
9) Slum Rehabilitation Authority (SRA) Scheme ................................. 117
Chapter 8: Rights and Duties......................................................... 119
1) Rights and Duties of the Members ................................................ 119
2) Rights and Duties of the Developer ............................................... 122
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Chapter 9: Disputes & Remedies in Redevelopment Process ......... 124
1) Common types of disputes ..........................................................125
2) Available Remedies for dispute resolution. ....................................126
3) The role of Maha-RERA in dispute resolution .................................127
4) Sahakar Samvad .........................................................................129
Chapter 10: Key take-aways ........................................................... 130
Annexure 1 – Resolution under Section 79A of the Maharashtra Co-
operative Societies Act, 1960 ............................................................. 136
Annexure-II - Explanation of Section 55(2) of the Income Tax Act as
Amended with E ect from April 1, 2024 .............................................. 146
List of Abbreviations .......................................................................... 148
List of Websites for reference ............................................................ 149

Disclaimer: The author has used software copilot to assist in writing/revising the language proficiency of this
book; therefore, some contents herein may be similar or identical to those freely available on the internet, which
the author has been advised is not an is infringement of copyright or intellectual property rights, as it is purely
unintentional. The author does not accept any liability or responsibility for any loss or damage arising from the
use of or reliance on this book. The book is for general information and guidance only, and does not substitute
any legal, technical, financial, or professional advice. The readers are advised to consult professionals before
undertaking any redevelopment project or entering into any contract or agreement with any developer or society.

Consult, Collaborate & Co-operate for a better tomorrow

9
 About
This book provides a comprehensive guide and serves as an essential
reference for society members interested in or undergoing the
redevelopment of their society. The book explains the procedures to be
adopted in implementation of the redevelopment process, ensuring
easy navigation through the complexities of redevelopment. The book
explains options available for redevelopment with pros & cons and the
procedures, important documentation and checks, with a focus on
practical advice and legal framework, it is an invaluable resource.
Whether you are a homeowner, a Managing Committee member of a
housing society, or an individual keen on understanding the
redevelopment process, this book is tailored to meet your needs to
understand the subject in a simple language covering all aspects
including real estate technical terms explained in simple language.
Embrace this opportunity to empower yourself with knowledge and
make informed decisions.
CA. S. H. Teckchandani, the author is a Chartered
Accountant by Profession, Past Chairman (2011-
12) of Navi Mumbai Branch of WIRC of The
Institute of Chartered Accountant of India. Rich
hands-on working experience of over 30 years
both as a Practicing CA and in Industries in
various positions. I have been associated with the
Real Estate in various capacities. Authoring the Book on “Guide to
Redevelopment of Co-operative Housing Societies, Procedure &
Checks” was inspired with a view to provide a suitable guide to the Real
Estate Sector beneficiaries who stake their entire life savings into buying
the home and are now stepping out to redevelop the same, by making
them aware of the risk and benefits of redevelopment.

1st Edition December 2024 – Copy Rights Reserved – MRP Rs. 500/-