Re-development
Post selection of the Developer
(from Society / Landlord / Tenant PoV)
Key Approval Stages
• MoU: Between Developer and Society / Land lord. It is a preliminary agreement (often
signed before the tripartite Development agreement) establishing mutual intent,
framework, and basic responsibilities. Where the property is under ‘pagdi’ system,
developer may agree to sign MoU with tenants but only after execution of MoU by
Landlord.
• Society consensus and consent: General Body Meeting of the society
members/tenants+landlord to discuss redevelopment, followed by securing the
mandated percentage of written consent from all members (typically 51%). Developer
is a special invitee at this meeting which is recorded.
• Feasibility study and appointment: A consultant or architect, generally appointed or
engaged by Developer, evaluates the feasibility, prepares detailed reports. MHADA
may screen the developer from financial strength and experience perspective.
• Development agreement: The society/tenants+Landlord signs a registered
development agreement generally with the selected developer, covering
compensation, timelines, amenities, and legal protections under RERA and MOFA.
• MHADA No-Objection Certificate: Legal clearances and a preliminary NOC from
MHADA for the developer to proceed.
Notes:
Developer will require underlying documents evidencing the tenant / society member and may ask
for trail of transfer / transmission / sale, typically from 1995 (and in some cases beyond 1995, if
circumstances demand) as well as pending disputes (intra tenants/members or
member/tenant/occupant-Landlord/Society encroachments [Link] addition to ownership documents
and site and floor plans as approved by MCGM or any other relevant Authority as specified by
Developer.
Construction and Completion
• Construction phase: The new building is constructed per approved plans, with
MHADA and municipal inspections at various stages
• Occupancy Certificate (OC): On completion, the architect submits a completion
report, triggering inspections by authorities. OC is the final legal clearance permitting
habitation
• Handover and shifting: Members shift into the new building; final compliance is
verified by MHADA and the MCGM
Main Agreements
• Tripartite Development Agreement: Mandatory for MHADA layouts and involves
three parties—MHADA the housing society /tenants+landlord, and the selected
developer. It covers construction terms, payment structure, timelines, rehabilitation,
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and dispute resolution. The tripartite format ensures that MHADA actively oversees the
project, unlike older bipartite agreements.
• Project Management Consultancy (PMC) Agreement: This agreement is signed
between the housing society/tenants+landlord and the appointed PMC. It details
supervision responsibilities, planning, day-to-day monitoring during construction, and
quality checking. Its objective is protect members' interests throughout the
redevelopment.
• Architect/Consultant Agreement: Societies/Landlord may be required to sign this
agreement with authorized architects or consultants for feasibility studies, technical
designs, plan preparations, and liaison work with authorities.
• Consent document: Individual consent agreements from society members/tenants
authorizing the redevelopment and agreeing to terms of compensation or alternate
accommodation.
• Temporary Alternate Accommodation Agreement: Covers terms for temporary
housing, rent allowances, relocation arrangements, reimbursement of shifting
expenses, and period during the reconstruction phase. Members or residents usually
shift out to alternate accommodation after IOD but before demolition, as a necessary
prerequisite.
Notes:
The IOD (Intimation of Disapproval) stage is a critical early phase during the redevelopment
process of a property, especially in urban projects. IOD is a provisional approval issued by the
municipal authority, outlining all the regulatory conditions and NOCs (No Objection Certificates)
that must be fulfilled by the developer before actual demolition or construction can legally begin.
The IOD serves as a legal safeguard to ensure compliance with municipal regulations, zoning laws,
and safety norms for redevelopment.
After preparing and submitting the redevelopment plans, the developer applies for the IOD. The
municipal authority will list all the preconditions (such as obtaining NOCs from fire, environmental,
and other departments) in the IOD. Once the IOD is received, it is still not permission to demolish
the building or start construction, but it means that the project has passed major regulatory
scrutiny.
• Permanent Alternate Accommodation (PAA or PAAA) Agreement: Specifies
details on the new premises (carpet area, amenities) that will be provided to each
eligible member after redevelopment, and may include timeline and handover terms.
Additional Documents
• Memorandum of Understanding (MoU): Preliminary agreement specifying mutual
intent, roles, and a basic framework before signing the detailed development
agreement. It may or may not be a registered document
• Conveyance Deed: Legal agreement post-redevelopment transferring land/building
title to the society or individual members, as stipulated by MOFA and Maharashtra
regulations
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• NOC/Sanction Letters: MHADA/Nodal authority issues official No-Objection
Certificates and sanctions at various stages, that are considered binding agreements
pertaining to project, compliance, and completion.
Note:
Almost all agreements required for MHADA redevelopment projects must conform to RERA formats
and include RERA-mandated clauses and disclosures. Further, the redevelopment agreements—
including the Development Agreement, Permanent Alternate Accommodation Agreement (PAAA),
Consent Letters, and the Tripartite Agreement—are required to be RERA-compliant and registered
with the Maharashtra Real Estate Regulatory Authority (MahaRERA).
May 2025
Mumbai
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