Housing society redevelopment · Mumbai
Clear guidance and sound bank finance for your society's redevelopment.
Ojas Consultancy helps Mumbai housing societies understand how redevelopment works, meet the right professionals, and prepare a loan proposal that a bank can assess with confidence. Our advice draws on 35 years of banking and project-finance experience.
- Approach
- Independent, on the society's side
- Experience
- 35 years in banking and project finance
- Current work
- Goregaon West project, nearing completion
- Consultations in
- मराठी · हिंदी · English
How we help
Three things a society needs from an adviser.
Know what you are agreeing to
Before a society commits its land and its members' homes, it should understand the choices in plain language.
- Builder-led and self-redevelopment compared, using your own numbers
- What the 2026 rules require at meetings and votes
- Questions to put to any developer before signing
- A realistic timeline and budget
Help connect with the right people
Every project needs specialists. We help societies connect with people who do this work every day.
- Licensed architects and structural engineers
- Advocates for title, society and RERA matters
- Chartered accountants for GST and tax
- Government-approved valuers, PMCs and contractors
Advise on the bank loan process
This is where 35 years of banking experience counts. We help prepare a proposal a lender can assess, and stay with it through disbursement.
- A feasibility and cash-flow model lenders can follow
- Loan proposal, documents and bank meetings
- Tripartite agreement and escrow set-up
- Tracking disbursements against construction milestones
Redevelopment basics · updated October 2026
Start here if your society is just beginning.
Short explanations of how redevelopment works in Mumbai today. Rules change often, so each society should confirm the current position with its advocate and architect.
Builder-led or self-redevelopment
Redevelopment works because the building rights available on your plot today are larger than what the old building used. That extra area pays for the new building. The question is who builds it, and who keeps what is left over.
| Builder-led | Self-redevelopment | |
|---|---|---|
| Who builds | A developer chosen by the society | The society, through a contractor it appoints, guided by a PMC |
| Who keeps the surplus | The developer, after giving members the agreed area and corpus | The society; members share it as extra area and corpus |
| Money from members | Usually none; the developer pays transit rent | Margin money and early costs before the loan is disbursed |
| Main risk | The developer delays, or runs short of money | The society carries cost, sales and execution risk |
| What protects members | Registered development agreement, individual PAAA, bank guarantee and rent escrow. The flats given to existing members fall outside MahaRERA. | The society's own controls, the bank's oversight under a tripartite agreement, escrow and milestone-linked disbursal |
The usual sequence
- Assess the buildingStructural audit, remaining life, and the cost of major repairs compared with redeveloping. The draft 2026 model bye-laws expect societies to weigh exactly these.
- Put records in orderConveyance, property card, approved plans, occupation certificate, member register, nominations and dues.
- First special general meetingDecide to explore redevelopment and appoint a PMC or architect. A redevelopment meeting needs 14 clear days' notice, a quorum of two-thirds of all members, a representative of the Registrar, and a video recording kept on record.
- Feasibility reportBuilding rights available, each member's entitlement, costs, sale potential and, for self-redevelopment, a funding plan.
- Choose the route and the partnerSelect a developer (builder-led) or a contractor (self-redevelopment) through tenders. The resolution needs approval from 51% of the society's total membership, including members who join by video.
- Agreements and financeBuilder-led: registered development agreement, individual PAAAs and bank guarantee. Self-redevelopment: loan sanction, tripartite agreement and escrow.
- ApprovalsIOD, commencement certificate and NOCs, plus MahaRERA registration for any flats offered for sale.
- Vacate and buildTransit rent for members, quality and cost checks, and disbursement linked to construction milestones.
- CompletionOccupation certificate, possession, sale of surplus flats, loan repayment and the corpus fund.
How a self-redevelopment is financed
The bank lends to the society, not to individual members. The Mumbai District Central Co-operative Bank (Mumbai Bank) is the state's nodal agency for self-redevelopment. As of 31 March 2026 it had sanctioned about ₹359 crore to 18 societies, and the Self-Redevelopment Authority reports around 1,600 proposals received.
How much a society may borrow. Under the June 2026 rules, a society undertaking self-redevelopment may borrow up to ten times the value of its land, as assessed by a government-approved valuer. The bank's own lending policy applies on top of that. Co-operative bank schemes have typically funded around 85% of project cost with a ceiling near ₹50 crore; confirm current terms with the bank.
Margin money. The balance the society arranges itself, from members' contributions, early sales or a tie-up loan. Planning this early avoids the cash gap that stalls many projects before approvals arrive.
Controls. A tripartite agreement between society, bank and contractor, an escrow account, and disbursement against certified construction stages.
Repayment. Mostly from the sale of surplus flats. Interest during construction is a real cost and belongs in the budget from day one. Banks generally expect society and government dues to be cleared before lending.
The 8.5% interest waiver on government premium applied to self-redevelopment proposals submitted by March 2026. Later proposals should budget for that interest where it applies.
Recent changes that affect your society
A dedicated chapter for housing societies, notified on 18 June 2026: safeguards for redevelopment meetings, the 51%-of-total-membership vote, borrowing up to 10× land value for self-redevelopment, standard member registers and nominations, and minimum sinking and repair fund contributions.
Summary by King Stubb & KasivaThe General Body gets the central role in redevelopment decisions. Societies are expected to weigh structural condition, repair costs, redevelopment potential, financial risk, and the merits of builder-led and self-redevelopment.
Moneylife reportA one-time route for buildings occupied without an OC. Eligibility runs from a datum line of 6 January 2012, with buildings occupied or permitted before 17 November 2016 also considered. Concessions on certain premiums and penalties are time-bound, and in redevelopment the OC for the rehab building is de-linked from the sale building.
Trilegal explainerThe Mumbai income tax tribunal held that capital gains from redevelopment rights arise in members' hands, not the society's. Each member should take advice from a chartered accountant.
The 8.5% interest waiver on government premium for self-redevelopment applied only to proposals submitted by March 2026.
Papers to gather before the first meeting
- Society registration certificate and bye-laws
- Conveyance deed or deemed conveyance order
- Property card and city survey (CTS) plan
- Approved building plans
- Occupation certificate (or amnesty eligibility)
- DP remarks and road-width certificate
- Member register with flat numbers and carpet areas
- Nomination records for every member
- Last three years' audited accounts
- Recent AGM and SGM minutes
- Structural audit report
- Statement of society and government dues
A short glossary
- FSI
- Floor Space Index: the built-up area allowed on a plot, as a multiple of the plot's area.
- TDR
- Transferable Development Rights: building rights generated elsewhere and bought to use on your plot.
- Premium and fungible FSI
- Extra area bought from the BMC against a fee, and compensatory area for balconies, lobbies and ducts.
- DCPR 33(7)(B)
- Incentive for redeveloping society buildings over 30 years old (not cessed): the larger of 15% of existing built-up area or 10 sq m per flat.
- Rehab and sale components
- Flats returned to existing members, and flats sold to fund the project.
- PAAA
- Permanent Alternate Accommodation Agreement: each member's own registered agreement for the new flat, area and possession date.
- Corpus fund
- Money handed to the society for long-term upkeep of the new building.
- Transit rent
- Rent paid to members while they live elsewhere during construction.
- IOD, CC, OC
- Intimation of Disapproval (conditions to meet), Commencement Certificate (start work), Occupation Certificate (fit to live in).
- Deemed conveyance
- The legal route to transfer land title to the society when the original owner will not.
- Tripartite agreement
- The loan agreement binding society, bank and contractor together.
- PMC
- Project Management Consultant: coordinates design, tenders, approvals, budget and quality.
Readiness check
Is your society ready to start?
It opens with example answers so you can see how it works. Change them to match your society. It does not replace a feasibility study.
Eight quick questions
The same questions banks and authorities will ask sooner or later.
Professional network
The people a redevelopment needs.
We help societies connect with professionals we have worked with. The society engages and pays them directly.
Professionals who join are listed privately and contacted when a matching project comes up.
Current project
Goregaon West, nearing completion.
This is Ojas Consultancy's first redevelopment project. [One or two sentences about the society: number of members, age of the old building, why they chose this route.]
[A short quote from the society's chairman or secretary, used with their written permission.]
Committee members of this society have agreed to speak with other societies on request. [Confirm before publishing.]
- Feasibility and member meetingsDone
[Month Year]
- General body approvalDone
[Month Year · consent %]
- Loan sanctionedDone
[Bank · ₹__ crore · Month Year]
- Approvals (IOD, CC)Done
[Month Year]
- ConstructionDone
[Start – finish]
- Occupation certificateIn progress
[Expected Month Year]
- Possession and surplus saleNext
[Expected Month Year]
Questions
What societies usually ask first.
Can you guarantee a bank loan?
No one can, and you should be wary of anyone who says so. Only the bank sanctions a loan. What Ojas Consultancy does is help the society prepare a complete, well-supported proposal, explain it to the bank in the terms lenders use, and follow it through.
Builder-led or self-redevelopment: which is better?
It depends on your plot, your road width, your members and your appetite for responsibility. Self-redevelopment can leave members with more area and a larger corpus, but the society carries the risk. A builder-led project transfers the risk, and the profit, to the developer. A feasibility study with your own numbers is the only fair comparison.
A developer has approached us. What should we check?
Ask for the offer in writing: carpet area per member, corpus, monthly rent and its escalation, possession date, delay penalties and the bank guarantee. Check the developer's record on other Mumbai projects. Insist on a registered development agreement and a separate registered PAAA for each member. The flats given back to members are not covered by MahaRERA, so these documents are your protection.
How long does redevelopment take?
Usually several months to a year for meetings, documents, feasibility, finance and approvals, and then about three years of construction. Projects stall most often in the early stage, when records are incomplete or members disagree.
Which areas do you cover?
[e.g. Goregaon, Malad, Kandivali, Borivali, Andheri and Jogeshwari. Other parts of Mumbai on request.]