DCPR 33(7), 33(7)(A) & 33(7)(B): Redeveloping Mumbai's Cessed Buildings

DCPR 2034 Regulations 33(7), 33(7)(A) and 33(7)(B) are the rules that allow old, rent-controlled “cessed” buildings in Mumbai’s island city (roughly Colaba to Mahim and Sion) to be demolished and rebuilt with extra floor space, almost always in partnership with MHADA. In plain terms: if your building pays a repair “cess” to MHADA’s Mumbai Building Repair & Reconstruction Board (MBRRB), these are the regulations under which a developer — or your own co-operative society — can redevelop it. Every eligible occupant gets a brand-new, larger flat free of cost, MHADA and the developer share the additional area that is created, and the whole scheme runs under the MHADA Act, 1976 and the DCPR 2034. This guide explains each sub-regulation, the A/B/C cess categories, how the “incentive FSI” is worked out, what MHADA takes, and the protections a cessed tenant enjoys.

What exactly is a “cessed” building?

A cessed building is an old tenanted building in Greater Mumbai’s island city on which a small repair tax — the cess — is levied. That cess is collected by the Mumbai Building Repair & Reconstruction Board (MBRRB), a wing of MHADA (the Maharashtra Housing and Area Development Authority) that exists specifically to look after these ageing structures. MHADA and MBRRB draw their powers from the MHADA Act, 1976.

These are typically buildings where families have lived for decades as protected tenants under old rent-control law, paying very low rents. Because the rent is frozen, landlords historically had little money or incentive to maintain the buildings — so many became structurally dangerous. The cess-and-MHADA system was created to fund repairs and, where repair is no longer viable, to enable full reconstruction. That is where Regulation 33(7) and its sub-clauses come in.

Two terms you will meet constantly:

• FSI (Floor Space Index): the ratio of total built-up floor area you may construct to the plot area. An FSI of 3 on a 1,000 sq m plot means 3,000 sq m of construction. Higher FSI means more sellable flats — which is what makes redevelopment financially worth it.
• Carpet area vs built-up area: carpet area is the usable floor inside your flat (wall-to-wall); built-up area adds the thickness of walls and a share of common areas. Your entitlement in a cessed redevelopment is measured in carpet area.

Cess categories: A, B and C (by age)

MBRRB classifies cessed buildings into three categories based on when they were constructed. Your category affects eligibility and, historically, the scheme terms. The standard classification used by MHADA is:

Buildings constructed after 30 September 1969 are generally not cessed. You can confirm your category from the cess bill itself or directly with MBRRB. Do not assume — the category, along with the plot size and road width, feeds directly into what the plot can support.

33(7), 33(7)(A) and 33(7)(B): what each one covers

All three live under Regulation 33(7) of DCPR 2034 (the Development Control & Promotion Regulations 2034 for Greater Mumbai / MCGM; the rest of Maharashtra uses the UDCPR instead). Broadly, they differ in who drives the scheme and how the extra area is calculated. The table below is a working summary — always confirm the exact applicable clause for your plot with MHADA and a licensed architect.

For very large layouts or multiple adjoining buildings, the separate cluster / urban-renewal route under Regulation 33(9) may apply instead, with its own consent and area rules. The important point for members: the sub-regulation chosen changes the maths of the deal, so ask your architect and MHADA which one your plot qualifies under before signing anything. Our DCPR 2034 explained guide walks through how these regulations sit together.

How incentive FSI works — and why there is no single number

A cessed redevelopment has two building components:

• The rehabilitation component — the free flats built to rehouse the existing eligible occupants.
• The incentive (free-sale) component — extra area the developer is allowed to build and sell in the open market. This is the developer’s reward for funding the project and is what makes the numbers work.

The total FSI a plot can support is plot-specific. It depends on the rehabilitation area required, the incentive formula under the applicable sub-regulation, the abutting road width (a road-width-based FSI table applies), and fungible compensatory FSI (an additional buildable area allowed on payment of a premium, used for balconies, flower beds, passages and the like). Because all of these vary from plot to plot, there is no universal FSI figure that applies to every cessed building.

Anyone who quotes you a fixed FSI number for “all” cessed buildings is over-simplifying. Work out your own plot’s realistic potential with the FSI calculator, and use the additional-area calculator to sanity-check how much extra carpet your family should reasonably receive.

MHADA’s share of the new building

Because the extra FSI in a cessed scheme is granted by the State through MHADA, MHADA does not give it away for nothing. Under the 33(7) family — particularly the formula-based 33(7)(A) route — once the entitled or incentive FSI crosses defined thresholds, MHADA is entitled to a share of the additional built-up area, or an equivalent in constructed housing stock or premium paid in lieu. This is how the State replenishes its affordable-housing stock while private redevelopment is enabled.

What this means for you as a member: MHADA is effectively a third stakeholder in the project alongside your society and the developer. The MHADA-share flats are handed to the authority for its own allotment and do not reduce what eligible occupants receive — but they are a real cost the developer factors in, which is exactly why the incentive FSI exists to balance the books. The precise share and the conditions attaching to it are set by the applicable sub-regulation and MHADA’s current policy, so ask MHADA for the figure that applies to your scheme rather than relying on hearsay.

What each occupant gets: minimum rehab carpet, free of cost

The core promise of a cessed redevelopment is that every eligible occupant is rehoused free of cost in a self-contained flat in the new building — and importantly, they move up from being protected tenants to owner-members of a new co-operative housing society, with proper title.

Each eligible residential occupant is entitled to a guaranteed minimum carpet area free of charge. That minimum has been revised upward over the years, so confirm the exact figure currently applicable to your scheme with MHADA / MBRRB. Occupants who already hold more than the minimum generally retain their existing carpet area (subject to the scheme’s rules), and non-residential occupants such as shops are rehoused with equivalent commercial area. In practice the negotiated outcome is often the guaranteed minimum or the existing area, whichever is higher.

Beyond the flat

• Transit rent: a monthly rent the developer pays so your family can rent alternative accommodation during construction, or transit accommodation provided directly.
• Corpus / hardship amount: a lump sum to cover the inconvenience of moving and future maintenance.
• New amenities: lift, water storage, parking and other facilities the old cessed building never had.

Compare competing developer proposals side by side — carpet area, corpus, transit rent, bank guarantee and timelines — using the offer comparison tool so you are judging the whole package, not just the headline flat size.

Cessed-tenant protection: your legal safety net

Cessed occupants are among the most heavily protected in Maharashtra, precisely because they were vulnerable protected tenants to begin with. Key protections:

• You cannot simply be evicted. A landlord or developer cannot redevelop over the heads of protected occupants; rehabilitation of every eligible occupant is a condition of the scheme.
• Permanent Alternate Accommodation Agreement (PAAA): each occupant signs a registered PAAA that records the exact carpet area, corpus, transit rent and timeline promised to them. The Section 79A redevelopment directive dated 4 July 2019 requires the Development Agreement (DA) and each PAAA to be registered, and under Section 17 of the Registration Act, 1908 documents creating rights in immovable property must be registered to be fully enforceable. An unregistered promise is a weak promise.
• Title and conveyance: because many cessed plots are owned by a private landlord, securing ownership of the land for the new society matters. Under Section 11 of MOFA (the Maharashtra Ownership Flats Act, 1963) the promoter must convey title to the society; where they refuse, Section 11(3) allows deemed conveyance through the Competent Authority (the designated District Deputy Registrar of Co-operative Societies).

If a developer starts diverting money, refuses to register PAAAs, or stalls the project, that can amount to criminal conduct — cheating under Section 318 or criminal breach of trust under Section 316 of the Bharatiya Nyaya Sanhita (BNS), 2023 (which replaced the old Indian Penal Code). Learn the warning signs on our frauds & scams pages before you commit.

Consent and choosing a developer: the 79A process

If your society is driving the redevelopment (rather than the landlord or MHADA), the developer-selection process is governed by the Section 79A directive of the Maharashtra Co-operative Societies Act, 1960 dated 4 July 2019. In brief, it requires:

• A requisition by not less than one-fifth (1/5th) of members to start the process;
• A Special General Body Meeting with a quorum of two-thirds (2/3rd) of total membership;
• Approval by not less than 51% of the total membership strength — not just of those present;
• The shortlisted developer must have at least one MahaRERA-registered project;
• A developer bank guarantee of 20% of project value;
• Completion within 2 years of the plinth commencement certificate (3 in exceptional cases);
• The developer-selection meeting to be video-recorded in the presence of the Registrar’s authorised officer; and
• No committee member or their relative may be the developer.

Our detailed 51% consent rule page breaks down every threshold and the documents you need. Getting consent right is what makes the whole scheme legally clean.

RERA safeguards for the sale flats

The free-sale flats in a cessed scheme are covered by RERA, 2016 / MahaRERA. Under Section 3, a project must be RERA-registered before it is advertised or sold (with a small-project exemption under Section 3(2) for land up to 500 sq m or up to 8 apartments). Section 4(2)(l)(D) requires 70% of buyers’ money to be kept in a separate scheduled-bank account, withdrawn only in proportion to construction and audited annually by a chartered accountant. Section 14 bars changing sanctioned plans without the consent of at least two-thirds of allottees, and Section 14(3) gives a 5-year structural-defect liability. Section 18 entitles buyers to a refund with interest, or interest for the delay, if possession is late. Usefully, MahaRERA has held that a redeveloping society can itself be a promoter or co-promoter — which strengthens a self-redeveloping society’s standing.

Tax touchpoints for members

Two provisions of the Income-tax Act, 1961 are worth knowing. Under Section 45(5A), for an individual or HUF in a registered redevelopment / joint-development arrangement, capital gains are taxed in the year the completion certificate is issued — not when you sign the agreement — and the consideration is taken as the stamp-duty value of your share plus any cash you receive. Separately, under Section 194-IA, a buyer of the free-sale flats must deduct 1% TDS where the price or stamp-duty value is Rs 50 lakh or more (filing Form 26QB within 30 days of the month-end). These are general pointers, not personalised tax advice — confirm your position with a chartered accountant.

What this means for your society

If you live in a cessed building, redevelopment under 33(7), 33(7)(A) or 33(7)(B) is often the only realistic path to a safe, modern, owned home — but the deal quality varies enormously. The practical checklist:

1. Establish the facts first: your cess category, the correct eligible-occupant list, your plot area and road width.
2. Model your own potential with the FSI calculator instead of trusting a developer’s single FSI claim.
3. Run a clean 79A process and hit the 51% consent threshold properly.
4. Insist on registered DA and PAAAs with every number written in, plus the 20% bank guarantee.
5. Confirm MHADA’s share and approvals in writing so there are no surprises later.

If your building is well organised, it is worth registering your society with us so you get structured, step-by-step help through the process — entirely at your own pace.

Where to find the official rule

The regulations themselves sit in the notified DCPR 2034 for Greater Mumbai (published by the Government of Maharashtra / MCGM); the cess and reconstruction framework is in the MHADA Act, 1976 and administered by MHADA / MBRRB; RERA obligations are on the MahaRERA portal; and the tax provisions are on the Income-tax portal. Always cross-check the current, notified text and MHADA’s latest circulars, as figures and shares are revised from time to time.