Redevelopment of old building: Here is checklist for home owners, CHS office bearers
Vinod Sampat 21 November 2013

There are several things to keep in mind while dealing with redevelopment of a building, especially for flat owners in a CHS. Here’s a checklist while dealing with redevelopment so you do not fall into the trap like home owners in the Campa Cola compound

The Campa Cola episode clearly highlights not only the need to curb illegal buildings and corruption but also the need for buyers to be aware of their rights. When redevelopment of the building is proposed, what are the things that you should keep in mind so that you do not fall into the trap like Campa Cola owners?


In the run up to Vinod Sampat’s seminar on 23rd November, he highlights what you need to keep in mind. Before reading, you may want to register for the event over here


Here are the important points that may be considered by your society while considering redevelopment


  • Income tax liability on the cooperative society; clause should be included in the tender that the same would be the liability of the developer


  • Ask for the permission if developer has obtained from the cooperative department in the projects undertaken for redevelopment in Maharashtra


  • Insist on a feasibility report; the services of a project management consultant of repute can be of help to the cooperative society in the long run


  • Insist on categorical statement from the developer that the developer will not construct more than a specified carpet area (be specific in sq feet terms)


  • The rights for additional FSI/TDR benefits should exclusively belong to the cooperative society


  • Do not to keep blind faith on cooperative society members negotiating with the builder


  • Do not compromise on stuff like height of the flat, three-phase meter, bore well, etc. Insist on individual agreement of members with developer before vacating the premises


  • Six months time be given to the members to shift to the new flat and then only possession of flat should be given to the new flat purchasers. This will have a taming impact on the new flat purchasers who at times do not behave properly with the managing committee members. A small minority may not be able to stop a redevelopment project


  • Insist on bar chart with regards to the phase at which construction activities would proceed


  • Ensure site visits to the various redevelopment projects completed by the developers. Before site visit, the letter of acceptance given by the cooperative society (where site visit is proposed) should be insisted


  • Post-dated cheque for a period of 24 months in advance. Normally the buildings are not constructed within the promised period. The agreement with the licensor should give an option of retaining the premises for an additional period of six months. The rent is normally increased every 11 months by the licensor


  • Amenities should be specified in detail


  • TDR to be purchased in cooperative society’s name


  • Agreement should specify that if the project is delayed beyond say ________ (days/month), then penalty per day of Rs_______ will have to be paid by the builder to each cooperative society member, besides the rent


  • The right of the developer should be as a licensee and not as an owner


  • The number of car parking spaces to be retained by the existing members of the cooperative society stilt as well as open car parking should be specified in the agreement


  • The amount to be collected towards transfer from new flat purchasers should be specified


  • No application for condoning of parking space deficiency should be made by the developer without the cooperative society architect’s written consent


  • Project is executed on AS IS WHERE IS BASIS


  • Builder should not make any changes in the building plan without the written consent of cooperative society architect


  • Builder should indemnify the cooperative society for all costs, expenses directly and/or indirectly connected with construction related activities


  • The right to terminate the Development Agreement, if the builder does not complete construction on or before _______ should be with the cooperative society


  • Insist on cooperative society architect’s certificate with regards to the carpet area of flat,  specifically mentioning the area of niche, drying space, dry balcony


  • Above all insist for a lien of say 10% till the builder obtains the building completion certificate.


  • The developer must be told to give his offer of the cooperative societies where he has undertaken redevelopment work with the information as under

(a) Date of offer

(b) Area constructed

(c) Date of Acceptance of offer

(d) Date of receipt of IOD

(e) Date on which the last member vacated the premises

(f) Date of receipt of occupation certificate

(g) Date of receipt of the building completion certificate

(h) Income Tax return of developer and his partners, directors


Stay tuned for the 5th part which will be published tomorrow in the run up to Vinod Sampat’s seminar. Register for the Moneylife Foundation Event by Vinod Sampat.


Check the first part over here

Check the second part here.

Check the third part here.


Those seeking help or advice on CHS issues can contact
Moneylife Foundation’s Legal Resource Centre (LRC) ( )


(Adv Vinod Sampat is a practising lawyer since past 28 years. He has authored several articles on property-related matters and written 46 books on cooperative societies, transfer of flats, recovery of dues, registration and stamp duty matters. He has been an Hon. Patron member of the Estate Agents Association of India. He is also the Hon. Advisor of the Federation of Accommodation Industry of India and is an advisor to the Maharashtra Chamber of Housing Industry as well as the Federation of Accommodation Industry in India, apart from being part of many committees and winning several honours.)

1 year ago
We need legal advice from Vinod Sampat...we would like to discuss our query regarding redevelopment of mhada building ....My Email ID is [email protected] and contact no. 9930453825 . Please do call sir
Sunil Nalawade
5 years ago
We need legal advice from Sampat regarding redevelopment of CHS my email id is [email protected]
naresh athwani
7 years ago
I need legal advice from Vinod Sampat...I would like to discuss my query regarding redevelopment of CHS Ltd....My Email ID is [email protected]
Vaibbhav Gajzar
8 years ago
Secretary not taking appropriate steps for having the redevelopment procedure completed on time. Building is very old and might fall if not taken action on time. Please help with what legal action can be taken against him as a flat owner. Please advise?
S P Borshe
1 decade ago

What about Bank Guarantee ?

According to me the society should ask for unconditional bank guarantee equal to the total project cost.


nagesh kini
Replied to S P Borshe comment 1 decade ago
This is an extremely valid pre-requsite to stall delays and defaults.
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