Redevelopment FAQ and Glossary: Key Terms for Mumbai Society Members

Redevelopment comes with its own vocabulary — FSI, fungible area, deemed conveyance, corpus, PAAA — and most society members meet these words for the first time only when a builder's proposal lands on the table. This page is a plain-English dictionary of the terms you will hear during a Mumbai housing-society redevelopment, grouped by theme so you can find what you need quickly. Where a term has a fixed legal meaning, we give the exact source: a regulation of the Development Control & Promotion Regulations 2034 (DCPR 2034) for Greater Mumbai, or a specific section of the law. Where a number depends on your particular plot, we say so and point you to a calculator instead of quoting one figure.

Use it as a reference: skim to the group you need, read the short definition, and look for the linked tool whenever a term involves your plot's actual numbers.

Regulations & FSI

These terms decide how much can be built on your plot and under which scheme.

• Development Control & Promotion Regulations 2034 (DCPR 2034) — the rulebook that governs building and redevelopment across Greater Mumbai (MCGM). It contains the official definitions, the permissible FSI, and the special redevelopment schemes. Policy explainers sit in the government policies hub.
• Floor Space Index (FSI) — the ratio of the combined total floor area of all floors of a building to the area of the plot (FSI = total floor area divided by plot area), as defined in DCPR 2034. A higher FSI means more area can be built. Your plot's exact figure is site-specific — check it with the FSI calculator.
• Admissible (basic) FSI — the base amount of construction normally allowed on a plot before any bonuses. The precise figure depends on road width, zone and plot, so treat any single "universal" number with caution.
• Fungible Compensatory Area — the official term for "fungible FSI": built-up area permitted over and above the admissible FSI by special permission of the Municipal Commissioner under DCPR 2034 Regulation 31(3). See how it adds to your flat with the additional area calculator.
• Premium FSI — additional FSI a developer can buy from the authority on payment of a premium. Amounts are plot-specific; DCPR 2034 deals with premium FSI in the FSI regulations, so we describe it generally rather than quote one figure.
• Transferable Development Rights (TDR) — development rights that can be moved from one plot to another, dealt with under DCPR 2034 Regulation 34. TDR lets a builder add area without buying more land; exact loading depends on your plot.
• Incentive FSI — extra FSI a scheme grants a developer as an incentive for rehousing existing occupants. It is plot-specific and scheme-specific.
• Regulation 33(7), 33(7)(A) and 33(7)(B) — the DCPR 2034 incentive regulations for redeveloping old and cessed buildings. They govern the extra FSI and rehabilitation area for such buildings; the exact FSI is plot-specific.
• Regulation 33(9) — Cluster redevelopment — the DCPR 2034 scheme for redeveloping a whole cluster of buildings together rather than one at a time.
• Cluster — any defined area with proper access comprising dwelling units, buildings, chawls and the like, as defined in DCPR 2034. It is the basis of cluster redevelopment under Regulation 33(9).
• Regulation 33(14) — Slum rehabilitation (SRA) — the DCPR 2034 regulation under which slum redevelopment schemes are carried out.
• Rehabilitation area — the area given back to existing members in a redevelopment scheme. Under DCPR 2034 schemes 33(5), 33(7), 33(7)(A), 33(9), 33(9)(A), 33(10) and 33(10)(A), this carpet area is the net usable floor area excluding walls and areas exempted from FSI.
• Amenity Space — a statutory space in a layout or plot reserved for public amenities such as recreational open spaces, markets, welfare centres, schools, dispensaries and fire stations, as defined in DCPR 2034.
• Building line — the line up to which a building's plinth may extend, as defined in DCPR 2034.
• MHADA Act 1976 — the Maharashtra Housing and Area Development Act, the law behind MHADA layouts and many old-building redevelopments.

Area terms

These are the words that describe the space in your flat and building. The single most important one to compare between offers is carpet area.

• Carpet area — the net usable floor area of a unit, excluding the area covered by walls and areas exempted from FSI computation; it carries the same meaning as under the Real Estate (Regulation and Development) Act, 2016 (RERA). This is the number that matters most when comparing a builder's offer.
• Built-up area — the area covered by a building on all floors, including any cantilevered portion but excluding cladding and areas specifically exempted from FSI computation, as defined in DCPR 2034. It is larger than carpet area.
• Tenement — an independent dwelling unit with a kitchen or a cooking alcove, as defined in DCPR 2034. In plain terms, one self-contained flat.
• Habitable room — a room designed for human habitation (including a kitchen used as a living room), but excluding bathroom, water-closet, laundry, pantry, corridor, cellar, attic, store-room and pooja room, as defined in DCPR 2034.
• Loft — an intermediate space between two floors, of maximum height 1.50 m, without permanent access, as defined in DCPR 2034.
• Plinth — the portion of a structure between the surrounding ground level and the floor immediately above it, as defined in DCPR 2034.
• Chajja — a structural overhang over openings on external walls for weather protection, as defined in DCPR 2034.
• Chowk — a space permanently open to the sky within a building, as defined in DCPR 2034.
• Balcony — a horizontal projection serving as a passage or sitting-out place, as defined in DCPR 2034.
• Basement / cellar — the lower storey of a building below or partly below ground level, as defined in DCPR 2034.
• Setback / marginal open space — the open distance left between a building and the plot boundary. It is governed by the regulations for your plot; described generally here.
• Affordable Housing — housing for the economically weaker section (EWS), lower income group (LIG) and middle income group (MIG), including rental housing, as defined in DCPR 2034.

Approvals & certificates

These are the permissions a project must collect on its way from paper to a flat you can move into.

• Intimation of Disapproval (IOD) — the first main building permission from MCGM, which, despite its name, lists the conditions to satisfy before construction. Described generally here.
• Commencement Certificate (CC) — the permission that lets construction actually begin once IOD conditions are met.
• Plinth Checking Certificate — MCGM's verification that construction up to plinth level matches the sanctioned plan. Described generally here.
• Occupancy Certificate (OC) — the certificate confirming a completed building is fit to occupy; without it, your new flat is not legally ready.
• Completion certificate — the certificate marking a project's completion. Note that redevelopment capital gains under Income-tax Act Section 45(5A) are taxed in the year it is issued.
• RERA registration — under RERA 2016 Section 3, a project must be registered with MahaRERA before it is marketed or sold. Section 3(2) exempts very small projects (land up to 500 sq m or up to 8 apartments).
• Consent for plan changes — under RERA 2016 Section 14, a promoter needs the written consent of two-thirds of allottees to alter sanctioned plans.
• Five-year defect liability — under RERA 2016 Section 14(3), the developer must fix structural and other defects notified within five years of handover, at no charge to you.
• Deemed conveyance — when a builder does not transfer land title to the society, members can obtain title through deemed conveyance under MOFA 1963 Section 11 (and Section 11(3)).
• Conveyance — the legal transfer of the land and building title to the society. Registration of such documents is required under the Registration Act 1908 Section 17.

Money terms

These decide what you receive, what is protected, and what tax applies. When comparing proposals, look at these numbers together, not one at a time.

• Corpus — a lump-sum amount the developer pays the society or members as compensation, often for hardship and future maintenance. Compare offers side by side with the offer comparison tool.
• Displacement rent — the monthly rent the developer pays members to live elsewhere while the building is under construction. Check what is fair with the rent comparison tool.
• Hardship compensation — an amount some developers pay members for the inconvenience of shifting out and back. Described generally here.
• 70% escrow — under RERA 2016 Section 4(2)(l)(D), the promoter must deposit 70% of the amounts collected for a project into a separate bank account, used only for that project's construction and land cost.
• Bank guarantee — security the developer provides so the society is protected if the project stalls. The MCS Act Section 79A directive of 4 July 2019 requires a 20% bank guarantee.
• Service charges — the society's running costs shared by members. They are the base on which non-occupancy charges are capped.
• Non-occupancy charges — extra society charges when a flat is rented out rather than self-occupied. These are capped at 10% of service charges by the Government Resolution dated 1 August 2001.
• TDS on property (Section 194-IA) — the buyer must deduct 1% tax at source on a property purchase of Rs 50 lakh or more, under Income-tax Act Section 194-IA.
• Capital gains on redevelopment (Section 45(5A)) — for individual and HUF members, capital gains on giving up the old flat for redevelopment are taxed in the year the completion certificate is issued, under Income-tax Act Section 45(5A).
• Delay compensation (Section 18) — under RERA 2016 Section 18, if the developer fails to hand over on time, allottees can claim a refund with interest, or interest for each month of delay.
• Premium — the amount paid to the planning authority to unlock premium FSI. Described generally; the figure is plot-specific.
• Stamp duty and registration fee — government charges on registering agreements and conveyance documents. Rates change, so confirm the current figure before signing.

People & documents

The individuals and papers involved in a redevelopment, and what each is responsible for.

• Architect — a person registered under the Architects Act, 1972, as defined in DCPR 2034. The architect prepares and certifies the building plans.
• Developer / Promoter — the builder undertaking the redevelopment. The Section 79A directive requires the developer to be MahaRERA-registered.
• Allottee — under RERA, the person to whom a flat is allotted or sold. RERA rights, such as the Section 18 refund, apply to allottees.
• Development Agreement (DA) — the master contract between the society and the developer. Under the 79A directive it must be registered.
• Permanent Alternate Accommodation Agreement (PAAA) — the individual agreement between each member and the developer recording the new flat and its terms. The 79A directive requires it to be registered.
• Project Management Consultant (PMC) — an independent professional the society appoints to guide the tender, evaluate proposals and oversee the developer.
• Structural engineer — the professional who certifies the building's structural design and, for old buildings, its condition. Described generally here.
• Society advocate / solicitor — the lawyer who vets the DA and PAAA on the society's behalf before members sign.
• Managing Committee — the elected office-bearers who run the society. Under the 79A directive, a committee member cannot also be the developer.
• Conveyance deed — the registered document that actually transfers title to the society.
• Tender / RFP — the formal request the society issues inviting developers to bid. Described generally here.

Governance & member rights

These terms cover how a redevelopment is decided, how disputes are handled, and the laws that protect members from wrongdoing.

• Maharashtra Co-operative Societies Act 1960 (MCS Act) — the law governing housing societies in Maharashtra, including redevelopment procedure and disputes.
• Section 79A directive (4 July 2019) — the state directive (No. SGY-2018-PK 85-14-S) that lays down the redevelopment procedure: a one-fifth member requisition to start, a two-thirds quorum at the Special General Body Meeting, 51% approval, a 20% bank guarantee, a 2-year completion timeline, a MahaRERA-registered developer, a registered DA and PAAA, and no committee member acting as the developer. Read more in the government policies hub.
• Requisition (one-fifth) — the redevelopment process starts when at least one-fifth of members formally requisition a meeting, per the 79A directive.
• Special General Body Meeting (SGBM) — the members' meeting that decides redevelopment. The 79A directive requires a two-thirds quorum and at least 51% approval.
• Member consent — redevelopment cannot proceed without the required majority; the 79A directive fixes the requisition, quorum and approval thresholds.
• Two-year completion timeline — the 79A directive sets an expected completion period; delays beyond agreed timelines can also trigger RERA remedies.
• Registrar / Deputy Registrar of Co-operative Societies — the government officer who supervises societies and can appoint an officer to oversee redevelopment meetings.
• Authorised Officer — the officer who may attend and oversee the redevelopment SGBM under the 79A framework. Described generally here.
• Section 91 (disputes) — disputes in a co-operative society can be referred under MCS Act 1960 Section 91. See how such matters have been decided in the judgments hub.
• Cheating (BNS Section 318) — dishonestly deceiving someone into delivering property is cheating under the Bharatiya Nyaya Sanhita 2023 Section 318 — a common charge in redevelopment fraud. See real cases in the frauds and scams hub.
• Criminal breach of trust (BNS Section 316) — dishonestly misusing property entrusted to someone is criminal breach of trust under BNS 2023 Section 316.
• Self-redevelopment — where the society redevelops on its own, with loans and a PMC or contractor, instead of handing the project to a developer.

Key laws & rules at a glance

A quick recap of the main legal references used above.