Redevelopment of residential buildings has caught on in Mumbai in recent years. Several projects have been taken up where either individual societies or the local authorities have gone in for such redevelopment, ostensibly to improve urban living. But there are some issues which, ideally, should be addressed and taken care of to ensure that this process is orderly and not haphazard, which is a risk associated with such schemes.

First, it is necessary to get a feel for what redevelopment is all about. Normally, there is a rule that once a building is over 30 years old, such redevelopment can be undertaken. If not, a structural audit is required periodically to certify that the structure is sturdy and safe. Even if it is less than 30 years old, redevelopment can be considered if specific conditions relating to structural issues are met.

Redevelopment Process Explained

Typically, the owners, represented by the society, will call for bids after a majority approve the concept. Various developers put in bids covering issues such as how much extra area will be given, the amenities to be provided, the time to be taken for completion, the monetary compensation to be provided for the interim period, and any lump-sum amount to be given to the owners, among others. The best bid, theoretically, is accepted, and the project commences. Often, a bank guarantee is insisted upon to ensure that the owners receive what they are promised during the period.

When the........

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