Cluster Redevelopment Policy Revamped
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• Self-Redevelopment – A Better
Option for Co-Operative Housing
Societies
• Developers to file quarterly
progress report on registered
projects, says MahaRERA
• Maharera
• High-Rise Buildings now Permitted
on Narrow Roads
• All about the Non-Occupancy
Charges in a Housing Society
• No Stamp Duty on New Flats
Acquired by Rehab Members after
Redevelopment
• Tenants of Non-Cessed Buildings
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You are here: Home | Realty Updates | Cluster Redevelopment Policy Revamped
CLUSTER REDEVELOPMENT POLICY
REVAMPED
Cluster redevelopment is considered the key to the well-organized • All about the Non-Occupancy
development for Mumbai. The basic scheme of the cluster redevelopment Charges in a Housing Society
means instead of redeveloping individual buildings, several old buildings
are jointly taken up for the group redevelopment. A concept of cluster • HC on No Pre-Condition of
redevelopment had been mulled by Developers and was conveyed to the Individual Agreement to Execute
State Government. Before CC Issued by BMC
The State Government accepted this idea and formulated a scheme by
• TDR on Private & Internal Roads
modifying the Development Control Rule (DCR) 33 (9) which enable a
Developer to use an FSI of 4 to develop an area of a minimum of 4,000 • Member In Housing Society
sq. meters. The FSI of 4 is otherwise not available to Developers under Cannot Merge Flats Without Bmc
DCR. However, this facility is extended only to legal buildings that are in Permission
most dilapidated and hazardous condition
Cluster redevelopment is to encourage the large scale redevelopment • GR On Filling Up Of Casual
projects under DCR 33(9) deals with cluster development which in turn Vacancy In Managing Committee
will also take care of other infrastructural aspects of planned road
widening, sufficient parking, sewage treatment plant, rain water
harvesting etc.
• High-Rise Buildings now
Cluster redevelopment means the Developer has to deal with many more
Permitted on Narrow Roads
stakeholders like landowners/landlords, tenants, commercials etc. At
times as a part of the larger cluster, the Developer is required to take up • Tenants of Non-Cessed
projects which otherwise are not viable. The other side of this scheme is Buildings to Get Ownership Flats
that even though the overall liability is significantly higher, it is not as after Redevelopment
attractive and rewarding as other single redevelopment proposals.
Since the primary reason was that the current cluster development policy • Redevelopment of Old Buildings
had several loopholes and was not attractive for the Developers, the and Housing Societies Under
State Government has now announced an amended cluster Section 33(7), 33(7)a and 33(7)b
redevelopment policy which as per the realty industry experts, is
• New Redevelopment Rules
considered Developer friendly.
under Sect.79 (A) of MCS ACT,
The State’s amended policy has diluted certain terms and conditions of
1961 w.e.f. 4Th July, 2019
old policy to encourage more cluster developments projects to be
undertaken by the Developers. Unlike the old policy which was earlier • Consent of 51% for
restricted only to the island city, will now cover the suburbs also. The Redevelopment of Mhada,
condition is that the size of the plot should be at least 10,000 sq. meters Cessed, SRA and Small
in the suburbs and a minimum of 4,000 sq. meters within the city limits. Buildings
The bigger the size of a plot for cluster redevelopment, the higher will be
the Floor Space Index (FSI) the Developer gets.
Floor space index, or FSI, refers to the size of a plot vis-à-vis total area of
• New Redevelopment Rules
construction. For instance, an FSI of 3 on a 1000 sq. meters plot would
mean the Developer can construct houses measuring 3000 sq. meters. under Sect.79 (A) of MCS ACT,
1961 w.e.f. 4Th July, 2019
The earlier rule that a project should have the consent of 70 per cent of
tenants stands unchanged but now the consent of 70 per cent of
landowners/landlords will be needed as against the earlier term of 100
per cent as landowners/landlords were a major stumbling block to such
4/11/2024, 10:27 PM
Cluster Redevelopment Policy Revamped
to Get Ownership Flats after
Redevelopment
• Documents to Be Attached With
the Development Agreement for
Registration
• Society Cannot Terminate
Development Agreement without
Permission from Maha Rera
• Redevelopment of Old Buildings
and Housing Societies Under
Section 33(7), 33(7)a and 33(7)b
Copyright © Dilip Shah 2012-2013. All rights reserved.
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https://www.redevelopmentofhousingsociety.com/index.php/163-cluster...
projects. They often blackmailed Developers by demanding huge
• Difference Between Housing
amounts besides a share of the project pie. Because of them, most
Society and Apartments Owners
cluster redevelopment projects have been stalled for years. It is expected
Association/Condominium
that the amended policy would bring relief to such stranded projects.
The new scheme envisaged that if a Developer acquires consent for 70% • Bombay HC rescues the majority
of the land, the State Government can intervene to acquire the rest of the of members to win over
land. A minimum carpet area of a redeveloped flat will be 300 sq. feet. redevelopment
Buildings having an age of more than 30 years or those which have been
declared ‘dilapidated’ shall qualify for cluster redevelopment. • What is Refuge Area in High
Rise Building
Those tenants, who opt for the project within three years of the
announcement of this policy i.e. up to December 2016, shall be eligible
• Fungible FSI in new DCR
for additional 10 per cent of the carpet area. Besides, those Developers
(Development Control Rules)
whose projects had earlier been rejected can now resubmit their
proposals under the new guidelines.
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4/11/2024, 10:27 PM