• Tenancy and redevelopment in Pune

I have rental flat in Pune in prime locality. There are only 9 tenants (all middle class) in the building from 1970. Few years back hands changed and new builder has purchased a building with plot and made agreement with all tenants but recognizing our tenancy from 1970. Each flat has carpet area of 650 sq ft approx. Initially new builder was talking of redevelopment and offered all tenants concessional rate of Rs. 4000/- but without transit accommodation. However it was all verbal and nothing was in writing. Last month he asked all tenants to submit ration card, aadhar card, electricity bill as he was to submit his plan in Pune corporation. When we asked for plan we were told that it is not yet ready. 

All the tenants received a letter on 22.01.2022 saying that you are the tenant and building has become old and hence redevelopment is necessary and builder has submitted plan in Pune Corporation and approval is expected in next 2 month. Builder states in letter that he will offer us the same carpet area as existing in new building only on rent. So builder is asking all tenants to come for agreement. As per one architect all the documents that builder asked us for submission in Pune corporation is to get extra FSI as there is a provision to get extra FSI if there are tenants.

There is a strong fear in our mind as follows. 

1) He may not honour his commitment later and once the existing building is demolished all tenants will loose tenancy right. 

2) Even if he offers on rent he may charge exuberant market rate which will run in to several thousands. 

3) After demolition he may not construct for several years giving some fake excuses. 

4) He can manage the certificate from corporation asking us to vacate as building is old and for our safety. In reality it is very strong building and can last for at least next 30 years. 

5) Since he has offered the same carpet area on rent in his letter he can go to court to get order for demolition. 

6) All tenants are interested to buy ownership in redeveloped building but NOT at market rate as many places builders are offering free of charge same or even more carpet area in Mumbai & Pune area.

7) No one knows whether this redevelopment will come under RERA. When I approached RERA office they just did not entertain saying RERA is only for owners and not for tenants. Though tenants are prospective buyers but RERA authorities did not accept the same.

8) Total maintenance of the building is looked after by tenants as per agreement. Will it help if we get the structural audit done by engineers who are on PMC panel and get the building painted so that it will act as good defence in case Pune corporation issues order to vacate the building? 

9) What is the legal remedy for tenants to avoid demolition and continue to stay as tenants if builder is not considering tenants for ownership free of charge or at concessional rate. 

Kindly advise as matter is urgent and serious.