As Mumbai is speeding towards becoming a global city, its old creaky buildings are being replaced by new swanky towers. Redevelopment is the buzzword of today's changing urban landscape. It refers to the process of reconstruction of residential as well as commercial premises. Redevelopment process entails construction of new building/s by demolishing existing old society building/s and using the maximum potential of the land by exploiting additional TDR, FSI as specified under the Development Control Regulations of Municipal Corporation of Greater Mumbai (MCGM).

Drawbacks of old buildings:

-Lack of modern amenities such as security, cleaning, and to operate pumps.

-Absence of shared facilities like gymnasium and a society office.

-Unavailability of proper playing area for children in the compound.

-Perennial leakage in structure and also in the overhead or ground floor water tanks.

-Unavailability of elevators causing suffering to heart patients and the elderly. bsence of a proper entrance lobby.

-Smaller rooms with Interior planning of rooms being unsatisfactory.

-Lack of attached toilets in bedrooms.

-Plumbing/electrical lines lying open

-Size of toilets being too small

-Low resale value due to poor condition of the building

Why Redevelopment

Options before the Societies is either to go in for Repairs/Renovation or for Redevelopment of their Society Building . Due to lack of necessary funds required to carry out repairs and the need for larger space to accommodate their enlarged families, Redevelopment seems to be the only way forward. Moreover, temporary repairs only increase the life of the building for 3 to 4 years with a probability of repair problems recurring. Whereas, a new Building is built with improved quality of construction, better amenities and good aesthetics and therefore can survive new climatic and geographic conditions.

Through Redevelopment, the existing members enjoy improved lifestyle in modern structures with landmark elevations and latest amenities in every room. There are many more advantages such as extra carpet area and increase in flat’s value with financial benefits like Corpus Fund, Rent Compensation for Transit Accommodation, Brokerage and Transportation Charges during the period while the building is under construction.

Redevelopment Approach has successfully transformed the cities of Hong Kong, Singapore and Shanghai and hence has also been envisaged to rejuvenate Mumbai which is facing tremendous land shortage

Our Redevelopment Services

At SMGK, we provide a single point of accountability and collaborate with specialists in a variety of service areas at each stage of the property redevelopment cycle. With great emphasis on innovation, we deliver excellence across our service lines to develop strong partnerships with our Clients and believe in working with them in the true spirit of mutual engagement.

From title clearance to valuation and appraisal of your property, and until it’s desired execution into a Next Generation landmark, we provide creative solutions to all redevelopment project requirements. In a nutshell, our redevelopment specialists handle the negotiations and due diligence process to anticipate and overcome obstacles, carefully track documentation, and ensure the property's redevelopment closes on time.

As per our detailed study, any well-planned redevelopment exercise goes through 10 basic phases. This begins with Tendering process to selection of a Developer , finalization of the terms and conditions of redevelopment to conceptualizing the development of the housing units and all the way to the final occupancy in the newly developed premises. Like any planning process, these steps have to be carried out in the exact sequence and with flawless timing.

Step-by-step Process of Redevelopment

1.Tendering and finalization of Developer:

The Housing Society is required to advertise preferably in 2 leading news papers inviting sealed tenders from various interested Developers. A Redevelopment Committee is formed to shortlist at least three Developers based on merit, and the comparative data is placed before the SPGM for final selection. The selected Developer is informed accordingly and his terms are invited in writing as an Offer letter to the Society.

2.Terms and conditions with the Society and finalizing the plans with members:

One of the most important step is agreeing on the basic terms and conditions between the members and the Developer. The broad terms and conditions may include extra area, corpus money, shifting charges, alternate accommodation, time frame of redevelopment, amenities in the new building, etc. Due consultation should be done with all the members, before finalizing the plans to incorporate their suggestions and additional requirements. The plans needs to be approved by them before applying for sanction from MCGM authorities.

3.Execution of Development Agreement

The execution of the development agreement is done once the two points above have been cleared by both the parties. Additionally, the draft copy of the agreement needs approval by the solicitors of both the parties. It is possible to appoint a common solicitor to reduce the time for execution of the document.

4.Sanction from MCGM in favour of the Society:

After the execution of the development agreement, the concession plan is put up for sanction from MCGM. The plan includes details of the entire layout as well as the concession plans in favour of TWO FSI (i.e. 1.0 plot area + 1.0 TDR purchased from open market + Applicable Fungible FSI ). This step makes the Society feel safe and confident towards the Development.

5.Obtaining the Intimation Of Disapproval and Loading of TDR in favour of the Society or Developer :

After the TDR is loaded, the IOD is obtained from the MCGM and the Developer then starts fulfilling all the necessary conditions mentioned in the IOD for obtaining the Commence Certificate. The Developer needs to purchase the TDR from the open market in the name of the Society or Developer and get the same deducted and loaded from MCGM. This step is taken with the intention to make the Society feel secure about the entire development process.

6.Shifting of the members :

Members feel lot more assured after the IOD is been obtained from the MCGM towards the entire development of TWO FSI. The members will now shift into their alternate accommodation as a prerequisite before demolition of the building which is a must before obtaining the CC from MCGM.

7.Demolition of the building:

Once the members have shifted into their alternate accommodation, the demolition of the building is done either phase-wise or totally depending on the scheme of redevelopment. Usually a notice period of about three months is given to the members from the date of execution of the development agreement for them to shift to an alternate accommodation.

8.Obtaining the Commencement Certificate (CC) :

The IOD approval and demolition of the building is followed by the issue of the CC (plinth level) by the MCGM which enables the Developer to start the construction work and after the plinth lines are verified by the MCGM officers, the further CC is granted for the complete building.

9.Construction of the building:

The building construction work then begins in full earnest as per the approved plans by the MCGM taking into consideration various safety factors involving the construction work. The quality of development and the amenities must be provided as per agreed terms and conditions.

10.Obtaining the Occupation Certificate and Shifting the old members:

The last step before the said completion of construction work is obtaining the Occupation Certificate enabling the Developer to lawfully allow the possession of the flats to be taken over by their respective owners.

FAQs (Download)

The process of redeveloping an old property needs various issues to be carefully checked and addressed. Builders/Developers have a usual practice of doling out incentives in the form of additional area, corpus, and reimbursement of rentals to occupants of the building being redeveloped. While the offer may seem exciting, each of these incentives come with their own fine-print which needs to be duly checked before agreeing to have your property redeveloped.

1.Selection of a Genuine Developer:

Due diligence must be exercised before shortlisting developers for your project. Never ever select a Builder simply on the basis of his financial offers and exorbitant increase in carpet area, or promises to provide amazing and astonishing amenities. His selection should be exclusively based on his merit, reputation, technical capability, experience, financial status, quality of construction and successful completion of his earlier projects.

2. Transparency in Managing Committee:

It must be ensured that the interests of the members are protected by the Managing Committee that handles the entire process. Often there is a suspicion of them being hand-in-glove with the Developer. At times, it is found to have been true as the Managing Committee members tend to look at their personal gains rather than ensuring a fair deal for Members of the Society.

3. Liquidty Crunch

Due to sudden liquidity crunch or improper planning, few developers drop the project half way or cause indefinite delay. The members of the society are at the maximum loss which may prolong for years. Depending on the provisions of the agreement, or even otherwise, Developers may also refuse paying the rent for alternate accommodation for the delayed period.

What to Negotiate With Developer:

1.The main focal area is payment of rent by the Developer for transit accommodation. No building is completed within 24 months and hence, make sure that an advance rent of 24 months is received in advance and a suitable penalty clause in the Development Agreement is inserted on default in handing over the possession within the stipulated time.

2.The Managing Committee needs to demand all financial benefits like Corpus Fund, Rent, Transportation and Brokerage. As per agreement this must be paid by the Developer to the members before they vacate their flats and Society hands over the property to the Developer.

3.Insist on providing the Bank Guarantee from Nationalized Bank with value equivalent to the estimated construction cost of all the flats in case the Developer fails to deliver the redeveloped flats to the members.

4.Few other areas the Managing Committee should emphasize are to provide adequate Car Parking, Additional Carpet Area, Purchase of TDR in Society’s name, execution of individual agreement etc.

Points of Caution:

1. The first and the foremost step before going in for redevelopment would be a structural audit of the building. The structural audit report will determine whether the building should go in for redevelopment or for major repairs. In the absence of the technical report it would not be legally permissible to pass a resolution in the general body meeting. Societites are known to call for general Body meeting and opt for redevelopment in absence of Structural audit, which is not recommended.

2. Before initiating redevelopment, It must be ensured that the land is conveyed in the name of Society and it has been suitably recorded in the Property Card issued by MCGM. Non-availability of conveyance from the old owners/Builders can completely halt the process of redevelopment.

3. Many redevelopment projects have often collapsed due to the growing and unreasonable demands of the members in majority. This should be restricted or avoided in the larger interest of the society.

4. Selection of Developer should not be scaled on the basis of various exorbitant offers but should be according to his standing/reliability/integrity and market credibility.

5. Avoid internal rifts between the Managing Committee and resident members during the progression of the process of redevelopment. Any difference in opinion should be discussed in open and amicably solved.

6. Managing Committee should desist from negotiating directly with the Developer keeping the other resident members uninformed. Any transaction or negotiation with the developer should be done transparently and in complete knowledge of the society members.

7. The successful execution of any redevelopment project primarily depends on the management by the Managing Committee. Transparent efforts to protect the corporate interest of the Society and 100% co-operation of each and every member is a must. This, in turn depends on the honestly and integrity of the members of the Managing Committees who are entrusted with the management of entire process of the redevelopment.

8. Avoid litigation with the Developer since it is basically the Society and its members who may be at a loss due to time consuming process of Law. This can be avoided if the terms and conditions of the redevelopment is made sufficiently robust with mutual clauses, in the early stages itself.

9. Housing Society Members must ensure that they elect the Managing Committee Members strictly as per the Election Rules specified as per Bye Laws governing the Housing Societies. The elected members should have a clean record and have adequate capacity to manage the process. Care should be taken not to elect office bearers who have consistently flouted provisions of Co-operative Act, Rules and Bye laws to further their own self interest, committed serious financial irregularities with the society funds and members with dubious records who have corrupt background.

10.The task of satisfactory completion of redevelopment of any Housing Society and to get back their members in their dream houses can be greatly simplified. This is purely subject to the Office Bearers and the Committee Members' sincerety and honesty and their commitment to the well being of their fellow members of the Society.

The Things To Be Aware Of While Signing a Redevelopment Deal:

1. Redevelopment Agreement (Also known as Development Agreement) needs to be well worded and un-ambiguously drafted to ensure that the overall interest of the residents is protected. Well drafter agreements are the key to avoid future litigations and legal hassles.

2. Thorough study and factual verification of Financial and Technical Details furnished by the Developers in the Tender Document is a must.

3. The developer needs to clearly specify in the agreement, the period within which the IOD and CC shall be procured. In case of failure to do so, the Society needs to keep the exclusive option to cancel the Agreement.

4. The exact time schedule for completion of project with various milestones needs to be clearly mentioned in the agreement.

5. The agreement should ensure inflexible compensation to members in case of delays in completion and possession of flats.

6. Every detail pertaining to the construction specifications, material to be used, branded amenities, etc. should be specified in the Redevelopment Agreement. Anything that is vague will go against the interest of Society members.

7. Care must be taken to ensure that necessary permissions are obtained and legal formalities are fulfilled to secure the project by the Developer. All this needs to be in place before he ask the members to vacate the premises.

8. Defect Liability Clause must be included in the Agreement to protect members against any defects due to factors such as bad workmanship or poor quality material.

9. The Bank Guarantee should be drafted simultaneously along with the Redevelopment Agreement. The Bank Guarantee document should be simple and not tied up with unwarranted conditions.

10. Major laws required to be kept in mind include the Transfer of Property Act, 1882; Registration Act, 1908; Indian Contract Act, 1872; CRZ laws; State laws like Maharashtra Ownership Flats (Regulation of Promotion of Construction, Sale, Management and Transfer) Act, 1963; Maharashtra Co-operative Housing Societies Act, 1960; stamp duty laws; Development Control Rules; Environmental Law; Tree Cutting Laws; Municipal Laws; Slum Redevelopment Scheme etc. Serious irregularities with respect to any of these rules can jeopardize the project. The consequences can be severe since neither the society nor the developer can proceed with anything that the law forbids.


TEAM is a real estate consultancy services company of the SMGK Group through which redevelopment services are offered. It Through it’s power of imagination and relevant experience, SMGK GROUP facilitates Redevelopment through it’s product “TEAM” which brings dream homes well within the realms of reality. Meticulous conceptualization with close compliance of statutory regulations, and accurate design documentation are the traits that makes TEAM , a pioneer in its sphere .

SMGK Group stands for trust and experience garnered by it through it’s long journey of more four decades of business in Mumbai .Working with TEAM, assures it’s clients and stakeholders with its experience, expertise and exposure of the SMGK Group in the Real Estate Industry. Apart from the core Management Team of the SMGK GROUP,  TEAM also has the expertise and specialization of a technically qualified team that can manage every stage of a redevelopment project’s life-cycle : Pre-Construction, Construction & Post-Construction.

Thinking of Redevelopment ??? – Do it through your TEAM.

What is a Team ?

T-E-A-M  is a tool/product of the “SMGK Group” to empower redevelopment. It comprises the following stakeholders essential for successful completion of a redevelopment project.

                        T  (Title Holders) - E  (Engineers) – A  (Architects) – M (Money Financiers)

T ---   Title Holders are members having shares in the property in proportion to the areas owned by

E ---  Engineers constitute qualified professionals such as RCC Consultants, skilled Contractors and other competent agencies necessary for execution of a project.

A ---  Architects are responsible for preparing the detailed concept of the project and obtaining requisite Approvals/NOCs from concerned departments for it’s successful completion.

M --- Money Financiers are responsible for providing finance required for timely completion of the project

How does TEAM work ?

-The Title Holders form a Core Redevelopment Committee (CRC). This CRC Shoulders the responsibility to assist the other TEAM Members on behalf of the Title Holders  in successful completion of the project.

-The Engineers and Architects are appointed by executing an agreement outlining their deliverables, timelines and compensation which is generally in the form of share in the sale areas of the project.

-The Money Financier organizes/makes payments for the purchases of TDR, Fungible FSI and 0.33 FSI and other necessary payments such as premiums, development charges, deficiency amounts, etc. In lieu, the financier gets a share in the sale area of the project allotted at a mutually agreed price.

-The Title Holders have the option to liquidate their further shares in the sale areas of the project in lieu of Corpus Fund, Rent , etc.

-The TEAM may raise further finance for construction of the buildings and completing the project either through the Money Financiers or by marketing/selling the balance sale areas of the project.

-Essentially,  the balance sale potential in terms of CA is converted into the no. of shares which the Title Holders can further divest after retaining their existing shares by executing registered Sale agreements with the other TEAM members. Those shares are then distributed to the various stakeholders on the basis of their contribution charges or on the basis of the benefits to be provided to them.

What are the benefits of TEAM?

-The Title Holders take active part in the planning, approvals, execution and completion of the project. They participate even in marketing and selling the Sale Areas available with them at desired prices and stages of the project thereby becoming important stakeholders of the project at every level.

-The Title Holders enjoy the benefits of profits, as desired and at the same time get assurance of the minimum benefit to be derived from the project.

-Chances of project failure are nullified due to the Title Holders’ active involvement at every stage/level avoiding unwarranted litigations due to trust deficit with the Builder/Developer.

-Thus, the TEAM ensures transparency at all levels/stages of the project. At the same time, the Title Holders retain their ownership and have an option to pick and choose the benefits in lieu of the sale areas they owns.

-Sales can be affected by taking benefit of the 20:80 scheme so that the Title Holders achieve security for construction finance.

- Flat bookings can be affected in the name of Pvt. Ltd. cos. whose shares can be eventually transferred to actual buyers.

- Funds for TDR, fungible etc., are ensured through mutually agreed sale of Sale Areas to the Money Financiers.

- In the process, the Title Holders stands to gain from marketing conditions as well as the other team members also are involved in the Sale Area benefits as they are allotted shares in the society in lieu of their services.

-Investment is lesser and hence finance cost is saved which is actually shared among the TEAM.

- Money Financiers ensure insurance against successful completion in the form of Bank Guarantee or any other collateral security.

- Stamp Duty and Taxation is largely saved.

- Due to dissection of the process, the revenues, as well as the hidden cost/profits , there is complete transparency resulting in satisfaction of the Members.

- TEAM stands to benefit by the Brand value and experience of SMGK Group that attracts good premium.

About Xception

Xception is an innovation-driven visionary initiative under the aegis of SMGK Group. With sharp skills in interior as well as structural design and execution, Xception seeks to carve its own niche within the offerings of SMGK Group. Our eco friendly, space saving and green practices ensure optimum use of space and resources, which are key to any superior quality product.

One of the core deliverables of Xception is the ability to build space efficient residential as well as commercial properties. This is a need of the hour in our increasingly space-crunched metros, where every square feet needs to be utilized judiciously. For instance we build affordable 1 BHK homes which bring utility of 2 or even 3BHK through smart designs, taking adequate ergonomics and comfort into consideration.

The Xception Brand

“X” in the Xception Brand describes the “Next Level” of thought and design towards addressing emerging challenges in real estate. It denotes the transformation of the Real Estate from an older generation to an all new generation -“Gen X” and hence the apt tagline of Xception , “ transforming lifespaces ”.

The colour bands used in the four inclined hyphens of the “X” in the logo of Xception symbolize the business ideology of being “ with nature ” endorsed by the SMGK Group, the proud owners of the Brand “Xception”. The RED hyphen signifies SOIL/LAND, the GREEN signifies PLANTS and GREENERY, the YELLOW signifies SUNLIGHT whereas the BLUE hyphen signifies WATER - all of these, basic ingredients of mother nature.

Xception Homes

The Xception Homes are a unique collaboration of location, space, innovative indoor amenities & xceptional design. Xception Homes recognize the potential of transforming lifespaces into number of options as per their utility requirements. Xception Homes give the committed city lovers, weekday city dwellers, corporate executives, nuclear families & people who want to live in the heart of the city. Our furnished studio apartments, micro apartments, home + office apartments, 1 to 4BHK apartments or vacation homes have all the multifunctional features you need to maximize every space i.e. small to large.

You will find our apartments / condos look small by appearance but they have a number of utilities because of unique design & innovative indoor amenities. For instance our 1BHK apartment gets easily transformed into a 2/3 BHK apartment. All of our living room, bedroom, kitchens & bathrooms are highly space efficient, so they can easily get adjusted to today’s nuclear family. So while living in homes having a lesser carpet area, there is still a lot space to do more. Xception Homes create hidden storage spaces through optimum utilization of space (i.e. not only on floor area but below ceiling area also). High storage spaces above kitchens by use of vertical ceiling & hanging areas for clothes above balcony which though not easily visible but easily accessible are some of the unique features of our designs.

Xception Kitchens

Through unique design & smart choice of space saving ideas we make our kitchen’s size less. The exceptional standouts : an extra-deep counter space with an additional fully-retractable countertop ; a sleek kitchen island with integrated dining table combo that accommodates all your dining habits; more storage space than usual; and integrated space-saving appliances, including a combination of convection oven-microwave, a tall dishwasher drawer, and an integrated fridge. Fitting right in: all the elements that allow you to cook, warm, toast, roast, chill, freeze and do all the clean up.

A Kitchen when it closed :

A Sleek Kitchen

A Kitchen When it’s open :

A place for everything

Xception Bathrooms

Our bathroom sets the best example of multi usage. It’s because, we integrate everything so that no space is wasted. Through unique design & innovative technologies , our bathrooms , not only save space but water also. Our washbasin & water closet are blended together in a single body and because of this unibody design and custom designed shower with a installed frameless glass door , it gives more area for movement in our bathrooms.

Xception Dual Bedroom

For all those who want all their day to day utilities at one hand distance in their bedroom, our xceptional bed is the ideal choice, where one finds every utility item in close vicinity i.e. bed, workstation, library , fridge counter, TV unit , etc. We have created our bedrooms with integrated transformable furniture systems, which transform space into a multi-functional utility area. For instance if you want to work from home or study , you can convert your bed into a workstation or a study table.

Xception Living Room

Our living rooms are a unique combination of all your home utilities so that you don’t need a separate area for those utilities. Through unique floor plan design & transformable furniture systems , you can transform your living room in a number of options (i.e. dinning room, guest room, bedroom, theater, storage room, study room, library, children room, play area & gym , etc.).

Echelon Design Consultants LLP (EDC)

About EDC

Among the portfolio companies of SMGK Group, Echelon Design Consultants LLP (EDC) shines forth as our in-house Architecture Services firm. Apart from its experience and strong prowess in technical skills of architecture and design, EDC also places due focus on execution. Beginning with designing and planning of building projects, it takes care of all regulatory and approval tasks to ensure timely completion. With a dedicated full-time team of project planners, licensed surveyors and architects, EDC ensure timely completion of project. You can expect a complete sense of satisfaction working with our state of the art concepts and designs.

Why Echelon ?

When it comes to successful execution of a real estate projects , timely and accurate approvals are of utmost importance. And that’s where Echelon comes as the best resource for providing the right expertise for successfully accomplishing any real estate project in Mumbai. EDC has had the privilege of being Architects and Licensed Surveyors of several projects in Mumbai and has sufficient experience in liasioning with various agencies towards timely completion. Echelon has shown its competence in Slum Rehabiitiation and also projects of MMRDA and MCGM departments.