Step-by-Step Redevelopment Process for a Housing Society

Why societies redevelop

Most Maharashtra buildings from the 1970s and 1980s are now structurally marginal. Redevelopment, done correctly, replaces the old structure, adds carpet area under revised DCPR 2034 regulations, and resets the building's lifespan — often without a single rupee from members.

The 79-A Directive is non-negotiable

The Maharashtra Government directive dated 3 January 2009 (popularly the "79-A Directive") lays down the mandatory process. Skipping any step exposes the committee to personal liability.

The 11 steps

1. Preliminary SGM with 51% member consent to explore redevelopment.
2. Appointment of a Project Management Consultant (PMC) — architect empanelled with the Municipal Corporation.
3. Detailed feasibility report, structural audit (mandatory after 30 years), and carpet area calculations.
4. Expression of Interest (EOI) advertisement in two newspapers (one English, one Marathi).
5. Shortlisting of minimum 5 developers.
6. Comparative statement of developer offers (corpus, rent during construction, additional area).
7. Final SGM with 75% member consent for the chosen developer.
8. Registered Development Agreement and Power of Attorney, with individual tripartite agreements with every member.
9. Bank Guarantee from the developer equal to 20% of the project cost.
10. Vacation of the building, demolition, construction, OC.
11. Handover, fresh conveyance in society's name, new share certificates.

Red flags

Beware of: unregistered Development Agreements, "goodwill" payments outside the documented corpus, developers with no prior redevelopment track record, and any proposal that skips the tripartite agreement.