Procedure

What is the procedure for undertaking redevelopment of tenanted property?

If you are an Occupant of tenanted property:

Step (i) You have to inspire your landlord to select and appoint a reputed Developer who has experience and track record of similar redevelopments.

Step (ii) You have to finalize terms for redevelopment with the Developer appointed by your landlord

Usual Terms involved:

• a) Compensation for Temporary Transit accommodation rent.
• b) Area of permanent alternate accommodation which is at least same as that of existing authorized accommodation or as per statutory limits of minimum & maximum size as prescribed by Authorities.
• c) Any corpus fund (one –time fund) for future increase in municipal taxes.

*Above mentioned terms vary as per location and (c) may not always be feasible.

Step (iii) You have to give your Irrevocable Consent for Redevelopment in favour of the Landowner/ Developer so as to enable him to submit redevelopment proposal for approvals to authorities.

Step (iv) The Developer to execute agreement for permanent alternate accommodation (Ownership Agreement) before vacating existing premises.

What is the procedure of undertaking Redevelopment for Co. Op. Hsg. Societies?

If you are a member of a Co-operative Society (Ownership Premises) :

Step (i) Conveyance in favour of the society should be completed first if not completed before.

Step (ii) After thoughtful deliberations and by following due process of Co-Op. Society bye-laws; your society should resolve to redevelop the property through special general body resolution with 75% majority.

Step (iii) The society will thereafter seek feasibility report with draft tender conditions from reputed professionals (Architect/ Project Management Consultant). Your tender conditions should provide minimum requirement in respect of area of alternative accommodation, transit rent/ compensation and consideration (corpus for inconvenience) for grant of Development Rights. Preferably your Tender form should annex a draft of agreement with Developer and incidental power of attorney. If society does not have the financial resources for this preliminary exercise; you may seek help of Housing Finance Institutions for the bridge loan or charge tender fees from Developers to recover this cost.

Step (iv) The society will then invite tenders through public notice with reasonable amount of Earnest Money Deposit. Interest to be earned on E.M.D. retained of successful bidder which may be appropriated towards preliminary expenses incurred by the society as referred above.

Step (v) Tenders to be opened in presence of bidders for better transparency.

Step (vi) After assessing tenders, society has to prepare comparative chart of the tenders received and shortlist minimum three bidders and inform all bidders accordingly and return E.M.D. of bidders who are not shortlisted.

Step (vii) Society to fix one day each for each of the shortlisted bidders and ask the interested members to visit the site of the shortlisted bidder and interact with them assessing their quality of work and organizational strength. Alternatively in special extra general meeting, the society may ask the shortlisted Bidders to give their presentation one after the other and request them to answer the questions of the members submitted to them three days in advance.

Step (viii) In a Special General Body Meeting, society needs to select Developer through ballot if unanimous selection is not feasible. For ballot procedure, reputed external election officer has to be appointed preferably from Registrar’s office.

All the above procedure to be in camera with proper documentation and in presence of official observer from Registrar Office to avoid allegations of non co-operating members.

Step (ix) Society to give the 'Letter Of Intent' (LOI) to the Successful Bidder and invite suggestions from the Successful Bidder in respect of Agreement/ POA and execute Agreement / POA within one month of LOI.