Verify the Developer's Track Record
Before anything else, conduct a thorough background check on potential developers. This is more than just looking at their brochures. Check their RERA registration number on the MahaRERA website. Physically visit their previously completed redevelopment
projects and speak to the residents there about their experience. Choosing a developer based solely on the highest financial offer is a common and costly mistake. A builder's history of delivering projects on time and as promised is your best indicator of future performance. Their financial stability is equally critical; a developer without sufficient funds can lead to a stalled project, leaving members stranded.
Ensure Your Society's Land Title is Clear
A successful redevelopment cannot begin if the society does not have a clear and marketable title to the land. The first document to confirm is the Conveyance Deed or Deemed Conveyance, which proves the society owns the land, not the original builder. Without this, the entire project can be legally stalled. Additionally, the society must have its Property Register Card (PRC) and other land records in order. Sorting out these documents is a non-negotiable first step before even inviting developers.
Appoint an Independent Project Management Consultant
Do not rely solely on the developer's experts. The society must appoint its own independent Project Management Consultant (PMC), architect, and legal advisor. A PMC acts as the society's technical shield, preparing an independent feasibility report that outlines the plot's potential, including the permissible FSI (Floor Space Index). This report allows the society to negotiate from a position of knowledge and ensures the commercial terms offered by developers are fair and transparent. The PMC will also help in vetting tender documents and overseeing construction quality.
Scrutinise the Development Agreement's Fine Print
The Development Agreement (DA) is the most critical document in the entire process. It must be vetted meticulously by your legal advisor. Key clauses to check include: the exact carpet area of the new flats (ignore vague 'super built-up' figures), detailed specifications of fittings and amenities, and a firm completion timeline with clear milestones. The agreement must also specify the penalty for delays, which should be significant enough to deter the builder from missing deadlines. Vague clauses are a major red flag.
Clarify All Financials: Corpus, Rent, and Guarantees
Redevelopment involves several financial components that must be crystal clear. The corpus fund—a one-time payment from the developer to the society to cover future maintenance and taxes—should be clearly defined. The monthly rent for temporary accommodation during construction must be specified, and members should ideally secure post-dated cheques or an upfront payment to avoid defaults. Critically, new government rules mandate that the developer must provide a bank guarantee, often 20% of the project cost, as a safeguard against project abandonment.
Confirm RERA Compliance and Member Consent
The Real Estate (Regulation and Development) Act, 2016 (RERA) is a crucial safeguard. If the developer plans to sell additional flats in the open market, the project must be registered with MahaRERA. This ensures accountability regarding timelines and the use of funds. Internally, the process must follow the Maharashtra Cooperative Societies Act. Recent amendments have made it easier to begin the process, requiring consent from 51% of the society's members to move forward with redevelopment plans. Ensure all meetings are properly recorded and transparent.
