Insist on ownership of commercial building 

ask him to give in writing terms and conditions of alternative accommodation 

Would like to know whether the building comes under repair board of MHADA 

If it's under MHADA then it will supervise the entire process including rehabilitation of the tenants 

If there is a demolition notice by BMC and the same is not challenged then the tenants have to vacate not only for their safety but also for public safety since If the building suddenly collapses then the neighboring building and passers by may get injured 

Is there any material available with you that shows that in lieu of the old residential houses the builder would be allotting office spaces to the tenants and that too on tenancy basis ? 

If the building is being redeveloped under the applicable scheme of DCPR 2034 then I have not come across any provision which says that in place of old residential premises the tenant can be allotted an office space 

So if there is any truth to the aforesaid then the same needs to be challenged by filing a writ petition in High Court 

Also the DCPR nowhere says that the new premises would be allotted on ownership basis. The builder can allot the rehab new premises on tenancy as well and he is not obligated to give ownership premises 

If however the building is merely being demolished and reconstructed then the provisions under the rent act will have to be complied. If not the tenants can file RAD suits u/s 33 of rent act 

However it appears to me that this is a case of redevelopment and not reconstruction. So DCPR will apply and not rent act 

From your contents itcan be understood that the BMC issued notice to vacate as the building is old. Now the builder is trying to demolish the building due to the BMC notice.

There is no confirmation about the redevelopment by the builder.

The builder purchased the property from the landowner and is demolishing the residential building to construct commercial complex, therefore it cannot be said to be a redevelopment project. 

If it is a pagdi system property then in a Pagdi property redevelopment, tenants have the right to security of tenure, partial co-ownership, and the ability to sell and sublet their premises, though not the land itself. They are protected under tenant-friendly laws like the Maharashtra Rent Control Act and must provide consent (often 51%) for the redevelopment to proceed. Tenants are typically entitled to a certain amount of rebuilt space based on their existing carpet area, which may also include additional benefits like Fungible FSI in some areas. 

You may please note that in a Pagdi system, tenants gain co-ownership rights and significant security of tenure beyond basic rental agreements, including the ability to sell or inherit their tenancy, share in property sale proceeds, and participate in redevelopment projects. 

If your rights are deprived you may consider contemplating legal action either through district court or by filing a writ petition against the builder and the BMC  for the reasons you may rely upon or as per the advise rendered by your local advocate 

• Tenancy rights protected: As Pagdi tenant under Maharashtra Rent Control Act, your rights survive demolition.

• Builder cannot force office space: He must give you equivalent residential flat; conversion to commercial is illegal without consent.

• No eviction without agreement: You cannot be dispossessed unless there is a registered redevelopment agreement (PAAA).

Once the property is redeveloped the tenant becomes owners in property. You can challenge the illegalilty of builder in court

1. Under Section 16 (1) of Maharashtra Rent Control Act, the  landlord or transferee is entitled to take possession of premises for demolition and reconstruction under following conditions…

(a) that the necessary funds for the purpose of the erection of new building or for erecting or raising of a new floor or floors on the terrace are available with the Landlord;

(b) that the plans and estimates for the new building or new floor or floors have been properly prepared;

(c) that the new building or new floor or floors to be erected by the landlord shall, subject to the provisions of any rules, by-laws or regulations made by municipal authority contain residential tenements not less than the number of existing tenements which are sought to be demolished;

(d) that the landlord has given an undertaking,—

(i) that the plans and estimates, for the new building or new floor or floors to be erected by the landlord include premises for each tenant with carpet area equivalent to the area of the premises in his occupation in the building sought to be demolished subject to a variation of five per cent. in area;

(ii) that the premises specified in sub-clause (i) will be offered to the concerned tenant or tenants in the re-erected building or, as the case may be on the floor to floors;

(iii) that where the carpet area of the premises in the new building or on the new floor or floors is more than the carpet area specified in sub-clause (i) the landlord shall, without prejudice to the liability of the landlord under sub-clause (i), obtain the consent, in writing, of the tenant or tenants concerned to accept the premises with larger area; and on the tenant or tenants declining to give such consent the landlord shall be entitled to put the additional floor area of any permissible use; (iv) that the work of demolishing the premises shall be commenced by the landlord not later than one month, and shall be completed not later than three months, from the date he recovers possession of the entire premises; (v) that the work of erection of the new building or new floor or floors shall be completed by the landlord not later than fifteen months from the said date.

Obtain all guarantees provided under the  Act. Further under Section 30 landlord  is not entitled to convert the  premises to commercial from residential by approaching Small Causes Court.

• Under Section 56 and other provisions of the Maharashtra Rent Control Act, Pagdi tenants have tenancy rights that entitle them to rehabilitation and protection from arbitrary eviction, even when the building is unsafe. The landlord or builder cannot unilaterally convert residential flats into commercial offices or alter the nature of your tenancy unless you voluntarily agree.

• If the builder is redeveloping, tenants are usually entitled to equivalent residential accommodation in the redeveloped building (of at least equal carpet area) or fair compensation/rent during the construction period. Giving “office” space instead of a residential flat, especially when you were residing there, could violate tenants’ rights.

• You are not obliged to accept being tenants in commercial premises with uncertain rent and no ownership, especially if the original status was residential and the redevelopment is not in accordance with a transparent agreement signed by all stakeholders.

• Do not vacate the flat without a written, registered agreement outlining your rights, new accommodation (preferably residential), compensation/rent during displacement, area promised, and conditions of tenancy or ownership.

• If the builder tries to forcibly evict or harass remaining tenants, file an immediate police complaint and report to BMC and the local Rent Authority or Competent Authority under the Maharashtra Rent Act.

• You and the other affected tenants should unite as a group or society to collectively negotiate with the builder. You may also approach the Rent Court or city civil court for an injunction to prevent dispossession without lawful agreement.

• Illegal demolition or conversion by the builder, especially without all tenants' consent and in violation of rent laws, can be challenged in court

- Since, your status is as a tenant under the pagdi system , then it will be intact even after the redevelopment. 

- Further, if the builder has taken the said land for redevelopment then also you are entitled to get the same flat and he cannot deny the same. 

- Further, during the construction period , you are entitled to get alternate accommodation from the builder. 

• You cannot be forced to accept commercial units.

• You cannot be evicted without due legal process.

• You and other tenants should immediately form an association, demand proper redevelopment scheme, and involve MHADA/SRA.

• Approach court/police if builder uses threats or starts partial demolition.

for more details you can take my consultation

regards,

Adv. Arunkumar Khedia

(Bombay High Court)