If you are a society member, managing committee, developer, or property investor, this is your complete roadmap.
1. What Is Redevelopment in Mumbai?
Redevelopment involves demolishing an old building and constructing a new structure on the same land, where:
- Existing members receive newly constructed flats (rehabilitation units)
- Developers use additional buildable area to sell flats
- Projects are regulated by municipal rules and state authorities
In Mumbai, redevelopment usually follows two primary routes:
- Slum-based projects governed by the Slum Rehabilitation Authority
- Cooperative housing society redevelopment governed by state GRs and municipal development control regulations
2. Why Redevelopment Is Booming in Mumbai
Structural Ageing
Many buildings in South Mumbai, Dadar, Bandra, Andheri and Borivali are 30–60 years old.
Rising Land Value
Land in Mumbai is extremely scarce, making redevelopment financially viable.
Incentive FSI Policies
The government offers higher FSI and TDR usage in certain zones to accelerate redevelopment.
Safety Concerns
Structural audits increasingly mandate redevelopment for dilapidated buildings.
3. Legal Framework Governing Redevelopment
Redevelopment is not controlled by a single law. It is shaped by:
- Maharashtra Cooperative Societies Act
- State Government Resolutions (GRs)
- Development Control & Promotion Regulations (DCPR/UDCPR)
- MahaRERA Act (for sale component)
If the project includes a sale component, it must comply with the Maharashtra Real Estate Regulatory Authority framework.
Understanding which legal layer applies to your building is the first step.
4. The 51% Consent Rule in Maharashtra
One of the most searched queries:
How much consent is required for redevelopment in Mumbai?
Under prevailing Maharashtra norms:
- Written consent of 51% of total members is sufficient to initiate redevelopment in many society routes.
- Consent must be formally recorded.
- Special General Meeting (SGM) procedures must be followed.
- Minutes and documentation are critical.
While 51% allows the process to move forward, minority disputes can still cause litigation if documentation is weak.
5. Society Redevelopment: Step-by-Step Process
Step 1: Structural Audit
Assess safety and redevelopment feasibility.
Step 2: Title & Conveyance Check
Ensure the society holds clear conveyance.
Step 3: Pass Redevelopment Resolution
Conduct SGM and record 51% consent.
Step 4: Appoint Project Management Consultant (PMC)
Independent technical advisor for evaluation.
Step 5: Invite Developer Proposals
Transparent tendering is best practice.
Step 6: Compare Offers
Evaluate:
- Carpet area offered
- Corpus fund
- Rent compensation
- Construction timeline
- Developer track record
Step 7: Finalize Development Agreement
Include:
- Entitlement schedule
- Transit clause
- Penalty clause
- Bank guarantees
Step 8: RERA Registration (If Applicable)
Saleable flats must comply with MahaRERA regulations.
6. SRA Redevelopment: How It Works
SRA redevelopment is applicable where slum eligibility conditions are met.
Key features:
- Governed by the Slum Rehabilitation Authority
- Beneficiaries receive rehab units as per scheme norms
- Developer monetizes additional FSI
- Transit accommodation is mandatory
SRA projects differ from society redevelopment because entitlements are policy-defined rather than negotiated.
7. FSI and TDR Explained (Core Economics of Redevelopment)
FSI (Floor Space Index) determines how much construction is allowed on a plot.
TDR (Transfer of Development Rights) allows additional buildable area to be transferred from another location.
In redevelopment:
- Base FSI is used
- Incentive FSI may be granted
- TDR may be loaded
- Rehab flats are constructed
- Balance area is sold
Why Owners Must Understand FSI
- Your flat size increase depends on available FSI
- Developer profitability depends on saleable area
- Incorrect calculations can reduce member entitlement
Always demand a written FSI worksheet.
8. MahaRERA and Redevelopment
A critical question:
Is RERA applicable to redevelopment?
Answer:
- Rehabilitation units for existing members are usually not treated as “sale.”
- Saleable flats must be registered with Maharashtra Real Estate Regulatory Authority if thresholds are met.
RERA Benefits:
- Escrow protection
- Mandatory project disclosures
- Timelines enforcement
- Complaint mechanism for delays
RERA compliance increases transparency.
9. Temporary Accommodation During Construction
Societies typically receive:
- Monthly rent compensation OR
- Transit accommodation
Key negotiation points:
- Rent escalation clause
- Duration guarantee
- Maintenance coverage
- Penalty for delay
Never sign without clear transit terms.
10. Timeline of Redevelopment in Mumbai
| Phase | Duration |
|---|---|
| Planning & Consent | 6–12 months |
| Approval Stage | 6–18 months |
| Construction | 24–36 months |
| Total | 2–5 years |
Delays may extend timelines due to regulatory approvals or disputes.
11. Common Risks in Mumbai Redevelopment
Developer Default
Mitigate via bank guarantees and escrow.
Consent Litigation
Maintain flawless documentation.
Post-Redevelopment Cost Shock
Expect:
- Higher property taxes
- Increased maintenance
- Parking management fees
Carpet Area Disputes
Ensure RERA-defined carpet area is used.
12. Self-Redevelopment in Maharashtra
Under certain state provisions, societies may redevelop independently.
Advantages:
- Higher profit retention
- Full control
Challenges:
- Financing
- Technical complexity
- Project management risk
Self-redevelopment requires strong financial planning and professional advisors.
13. Financial Planning Before Signing
Members should evaluate:
- Corpus fund adequacy
- Tax implications
- Temporary housing cost
- Future maintenance expenses
- Property value appreciation
Redevelopment increases asset value but also raises ongoing outgoings.
14. Frequently Asked Questions (High-Search Queries)
Can one member stop redevelopment?
Not if 51% valid consent exists — but legal challenges can delay execution.
Will I get a bigger flat?
Usually yes, depending on FSI availability and negotiated terms.
Is redevelopment mandatory?
No, unless declared unsafe by structural audit authorities.
How do I verify developer credibility?
Check:
- Past completed projects
- Financial stability
- RERA registration records
15. Complete Redevelopment Checklist for Societies
✔ Structural audit
✔ Legal title verification
✔ 51% consent documentation
✔ Transparent developer selection
✔ Written entitlement schedule
✔ Transit clause clarity
✔ RERA compliance
✔ Bank guarantees
✔ Defined possession timeline
✔ Post-handover maintenance planning
Final Conclusion
Redevelopment in Mumbai is a powerful urban renewal mechanism — but it demands legal precision, financial due diligence and transparent governance.
Whether through society redevelopment or SRA schemes, success depends on:
- Strong documentation
- Independent advisors
- Clear entitlement calculations
- Regulatory compliance
- Realistic timelines
Handled correctly, redevelopment transforms old buildings into modern, safe, high-value assets.
Handled poorly, it leads to litigation and long delays.