Amended development control rules (DCR) approved by the state government last January grant 35% compensatory floor space index (FSI) free to the rehab component of the redevelopment project. But it is not known if the builder or flat owner will have to pay for the additional space.
Tenants are currently entitled to 300-700 square feet houses free when their buildings are redeveloped. But if the flat is larger than 700 sq ft, builders provide an equivalent area to the tenant in the re-developed property.
If the apartment is 1,000 sq ft, the compensatory FSI will be given on 910 sq ft (minus the 90 sq ft balcony area). Hence in the redeveloped property the occupant can receive a new house measuring about 1228 sq.ft ..
As per the terms of the agreement between the developer and the society in question, existing members of the society receive new flats in the reconstructed building of an area equal to or more than the area of their existing flats. But redevelopment can only take place if 75 percent of the members tender their consent.
"If the carpet area, as documented in the agreement, is not given by the builder, the owner can claim appropriate compensation through a consumer court by filing a complaint against the builder under the counts of Breach of Trust, Cheating, Unfair Trade Practice and Deficiency in Service,
The housing society should insist on a bank guarantee, which would take care of monetary compensation to ensure the project is not delayed or stopped midway. "The successful bidder has to give a bank guarantee equivalent to 20 percent of the total project cost,
The agreement should mention the time of completion of the project, the size of the new houses, the mode and nature of monetary compensation, if it's a one-time payment, reimbursement of rent, or a mix of both.The developer also has to offers a monthly compensation in advance along with the brokerage and transportation charge that the tenant has to incur while securing an alternate accommodation