How to Choose the Right Developer for Your Society Redevelopment
Pick a financially sound, MahaRERA-registered developer with a proven delivery record and the guarantees the law already requires — here is exactly how to evaluate and compare them.
Choosing the right developer is the single decision that most affects how your redevelopment turns out — the extra carpet area you receive, the rent you get during construction, the corpus paid to your society, and above all whether you get possession on time. The safest choice is a financially sound builder who is registered with MahaRERA, has actually delivered similar projects, gives verified references, and provides the security the law already demands. Under the Section 79A redevelopment directive dated 4 July 2019, every shortlisted developer must have at least one MahaRERA-registered project, and the winning developer must furnish a bank guarantee of 20% of the project value. This guide shows you how to screen, verify, score and compare developers so your general body votes with facts, not promises — including how to check, in about ten minutes and with a calculator, whether the offer in front of you is built on the right FSI figure at all.
Why the developer choice matters more than the offer sheet
Most societies are dazzled by the headline numbers — the biggest area, the highest corpus, the fanciest brochure. But a large offer from a weak developer is worth less than a modest offer from a strong one. If the builder runs out of money halfway, your members sit in transit accommodation for years, rent cheques bounce, and the society is dragged into litigation. The right developer is the one who can finish the building to specification, on schedule, and honour every clause in the registered agreement. Everything in this guide is built to test that single question: can this developer actually deliver what they are promising?
Step one: start with the legal floor set by the 79A directive
In Maharashtra, redevelopment by a co-operative housing society is governed by directives issued under Section 79A of the Maharashtra Co-operative Societies (MCS) Act, 1960 — the provision that lets the State Government issue binding instructions to societies. The current framework is the Section 79A directive dated 4 July 2019, which replaced the earlier 3 January 2009 directive. It sets minimum standards that automatically filter out unsuitable developers, so treat these as your non-negotiable baseline before you even look at an offer:
- Proven RERA project: the shortlisted developer must have at least one MahaRERA-registered project. A builder with no registered project on record does not clear the starting line.
- 20% bank guarantee: the selected developer must provide a bank guarantee equal to 20% of the project value — real security your society can invoke if the builder defaults.
- Fixed completion timeline: the project must be completed within 2 years of the plinth Commencement Certificate (CC), extendable to 3 years only in exceptional cases. Ask every developer to accept this in writing.
- No conflict of interest: no committee member, office-bearer or their relative may be the developer. This directly guards against the committee–developer nexus that causes many disputes.
- Transparent selection: the developer must be chosen in a Special General Body Meeting (SGBM) that is video-recorded and attended by an authorised officer of the Registrar, with approval by not less than 51% of the total membership.
Step two: verify MahaRERA registration and the promoter's record
The Real Estate (Regulation and Development) Act, 2016 (RERA), enforced in the state through MahaRERA, is your most powerful screening tool. Under Section 3 of RERA, a promoter cannot advertise, market or sell a project without registering it first. (A narrow exemption in Section 3(2) covers very small projects — land up to 500 sq m or up to 8 apartments — but genuine society redevelopments almost always require registration.) Importantly, the definition of "promoter" in Section 2(zk) of RERA covers a primary co-operative housing society that constructs apartments or buildings for its members, which matters if you later consider self-redevelopment.
What RERA already guarantees your members
Registration is not a formality — it triggers real protections you should confirm every developer will honour:
- Ring-fenced money (Section 4(2)(l)(D)): 70% of the buyers' money must be kept in a separate scheduled-bank account and withdrawn only in proportion to construction progress, with an annual chartered-accountant audit within 6 months of the year-end. This is what stops a builder diverting your project's funds to another site.
- Five-year defect liability (Section 14(3)): the promoter remains liable for structural and workmanship defects reported within 5 years of possession — a written safety net for the flats your members will live in.
- No silent plan changes (Section 14): sanctioned plans and layout cannot be changed without the consent of at least two-thirds of allottees.
- Compensation for delay (Section 18): if possession is late, allottees are entitled to a refund with interest, or interest for every month of delay.
How to check a developer on the MahaRERA portal
Anyone can do this free of cost on the official MahaRERA website. For each developer you are considering:
- Search by the promoter's name and by each project name to pull up their registration record.
- Confirm the registration number is valid and the project status is active (not lapsed or revoked).
- Compare the original proposed completion date with the current date — repeated extensions signal a builder who over-promises and under-delivers.
- Read the quarterly progress updates and financial disclosures the promoter is required to file.
- Open the "Complaints" tab: a long list of member or buyer complaints, or adverse orders, is a serious warning.
For a faster first pass, our developer track-record tool and the site's eligibility checker help you organise these findings. To understand the full set of duties a registered promoter owes you, read MahaRERA promoter obligations.
Step three: test the developer against five pillars
Once a developer clears the 79A and RERA floor, judge them on five things. Score each one so you are comparing evidence, not sales talk.
1. Financial strength
Redevelopment is capital-intensive; the builder pays rent, corpus and construction cost for years before selling a single new flat. Ask for audited financials, banker references, and proof of funding or a sanctioned project loan. A developer stretched across many projects at once is a genuine risk to yours.
2. Track record and delivery
Count completed projects, not launched ones. How many did they finish on time? Did earlier societies receive their promised area and specifications? A builder who has delivered three similar society redevelopments in your area is far safer than one with glossy renderings and no completions.
3. References and site visits
Insist on speaking to office-bearers of societies the developer has already redeveloped — and visit those buildings. Ask the residents directly: Was possession on time? Did rent arrive every month? Was the corpus paid in full? Were defects fixed under the five-year liability? Was the conveyance completed? Honest developers welcome these conversations.
4. Guarantees and security
Beyond the 20% bank guarantee required by the 79A directive, look for the full security stack: the RERA 70% escrow account, the five-year structural defect liability under Section 14(3), a clear penalty for delay linked to Section 18, and — critically — that the development agreement and each member's Permanent Alternate Accommodation Agreement (PAAA) will be registered. Under Section 17 of the Registration Act, 1908, these documents creating rights in immovable property must be registered to be fully enforceable.
5. Transparency and a fair, comparable offer
A good developer gives you a clear, written offer you can line up against others — area, corpus, monthly rent, brokerage, timeline and specifications — without hidden conditions. Do not eyeball this. Use the offer comparison tool to compare area and corpus on a common template, and the rent comparison tool to check that the transit rent actually matches market rates in your locality.
Step four: score the bid arithmetically, not on adjectives
Every offer you receive rests on one number the developer has already worked out privately: how much built-up area your plot can legally produce. If that number is understated, every figure below it — your extra carpet, your corpus, your rent — is understated with it. You can check it yourself. In Greater Mumbai the permissible FSI is fixed by Table 12 of the sanctioned DCPR 2034 and turns on the width of your access road. (DCPR 2034 applies to Greater Mumbai only; the rest of Maharashtra follows the UDCPR.)
| Width of the access road | Island City (basic 1.33) | Suburbs & extended suburbs (basic 1.00) |
|---|---|---|
| Less than 9 m | 1.33 | 1.00 |
| 9 m and above but less than 12.00 m | 2.00 | 2.00 |
| 12.00 m and above but less than 18.00 m | 2.40 | 2.20 |
| 18.00 m and above but less than 27 m | 2.70 | 2.40 |
| 27 m and above | 3.00 | 2.50 |
Source: DCPR 2034 (sanctioned), Table 12.
Three details decide whether you have read that table correctly:
- A road of exactly 9.00 m is in the higher band. The sanctioned table reads "less than 9 m" for the basic band and "9 m and above but less than 12.00 m" for the next. So a measured 9.00 m road commands 2.00 — not 1.00 in the suburbs or 1.33 in the Island City. Nine metres is a very common layout width in Mumbai, and this one edge case doubles the answer. Have the road measured on site; do not accept the developer's figure.
- FSI applies to the net plot area, not the gross. Regulation 30(A)(2) computes permissible FSI on the plot area excluding land under DP roads, land under a sanctioned Regular Line under the MMC Act, and land under Regulation 14 amenity plots, Regulation 16, and Regulation 17 reservations to be surrendered. Ask every bidder to state the plot area after those deductions, and to say what TDR they expect for the surrendered land under Regulation 32.
- The premium slice has a price. Part of the permissible FSI is additional FSI on payment of premium, charged for BUA at 50% of the ASR land rate (for FSI 1) of the year in which the FSI is granted — Regulation 30(A)(6). In the suburbs the premium slice is 0.50 in every band from 9 m upwards. Anyone quoting 60% is using the draft, which was not sanctioned; that overstates the bill by a fifth.
Worked example
Suburban society. Net plot area, after deducting the DP road set-back and the reservation to be surrendered: 1,000 sq m. Access road measured on site: 15.00 m.
15.00 m falls in the band "12.00 m and above but less than 18.00 m". Suburbs permissible FSI = 2.20 (basic 1.00 + premium 0.50 + TDR 0.70).
Built-up area the plot supports: 1,000 × 2.20 = 2,200 sq m.
Developer A's working assumes FSI 2.00: 1,000 × 2.00 = 2,000 sq m.
Developer B's working assumes FSI 2.20: 1,000 × 2.20 = 2,200 sq m.
Gap = 200 sq m of built-up area (about 2,150 sq ft) missing from A's feasibility — before a single word about corpus, rent or specifications.
Then price the premium. In that example the premium component is 0.50 × 1,000 = 500 sq m of BUA. At 50% of the ASR land rate for FSI 1, if your ward's ASR land rate is Rs A per sq m, the premium payable is 500 × A × 50% = 250A. Put your own ward's ASR figure in, and ask both bidders to write down the rate they used, the ASR year, and who pays it. A developer who cannot produce that line has not costed your project.
Source: DCPR 2034 (sanctioned), Regulation 30(A)(2) and 30(A)(6), Table 12.
If your building is cessed, the number of plots is the real lever
For a cessed building in the Island City existing prior to 30/09/1969, redevelopment runs under Regulation 33(7). Your rehabilitation carpet is the carpet each occupier actually occupies, with a floor of 27.88 sq m (300 sq ft) and a ceiling of 120 sq m (1,292 sq ft); carpet above 120 sq m is paid for by the occupant at cost of construction as per that year's ASR, and it counts towards rehabilitation FSI but not towards incentive FSI. The total FSI is 3.00 of the gross plot area, or rehabilitation FSI plus incentive, whichever is more — note that this 3.00 is on the gross plot area, unlike the Table 12 figures above.
What your society can actually negotiate is how many cessed plots go into one scheme, because the plot count alone sets the incentive:
| Cessed plots in the scheme | Incentive FSI | Additional rehab carpet per occupier |
|---|---|---|
| Single plot — clause 5(a) | 50% | +5% |
| 2 to 5 plots — clause 5(b) | 60% | +8% |
| Six or more plots — proviso to 5(b) | 70% | +15% |
Source: DCPR 2034 (sanctioned), Regulation 33(7) clause 5. Additional carpet is subject to the maximum limit.
Worked example
Occupier's existing carpet: 40 sq m — above the 27.88 sq m floor and below the 120 sq m ceiling, so it is taken as occupied.
Scheme of one plot: 40 × 1.05 = 42 sq m, incentive FSI 50%.
Scheme of 2 to 5 plots: 40 × 1.08 = 43.2 sq m, incentive FSI 60%.
Scheme of six or more plots: 40 × 1.15 = 46 sq m, incentive FSI 70%.
Same flat, same occupier: 4 sq m more carpet (about 43 sq ft) and 20 percentage points more incentive FSI, purely because five neighbouring cessed plots joined the scheme.
Where the permissible FSI is 3.0, the regulation allows it to be exceeded by the BUA required for that 5%, 8% or 15% additional rehab carpet — so the extra carpet is not taken out of the members' share. Two consequences for a committee comparing bids: first, ask every developer how many cessed plots their scheme covers, because a bid on your plot alone and a bid on a six-plot composite scheme are not the same offer and cannot be scored against each other; second, write to the Mumbai Repairs and Reconstruction Board (MBRRB) for the certified list of eligible occupiers. Under 33(7) the eligibility list and the consents are certified by MBRRB, and consent of not less than 51% of the occupiers of the old building is required. Get that certified list before you start counting votes, not after.
Corpus: check whether a legal floor exists at all
Corpus is where societies most often assume a rule that does not exist. There is no universal statutory minimum corpus for every redevelopment. There are two specific floors, and each applies only to its own scheme:
| Scheme | Minimum corpus per tenement |
|---|---|
| Cluster / urban renewal — Regulation 33(9) | Rs 50,000, or as directed by the High Power Committee, to fund 10 years of maintenance of the rehabilitation buildings |
| Slum rehabilitation — Regulation 33(10) | Rs 40,000, or as decided by SRA |
| An ordinary society redevelopment | No statutory minimum — entirely negotiated |
Source: DCPR 2034 (sanctioned), Regulation 33(9) clause 17 and Regulation 33(10).
For a 20-flat society inside a 33(9) cluster scheme, the Rs 50,000 floor means the corpus cannot be less than Rs 10,00,000 across the society. Treat that as a floor and not a target: a bid sitting exactly on it is a bid at the legal minimum. If your scheme is neither a 33(9) cluster nor a 33(10) slum scheme, no regulation sets any minimum, so the corpus is worth only what your committee negotiates and gets into the registered development agreement.
A two-offer comparison worksheet
Put both bids on these nine lines before you look at anything else. Any line a developer will not fill in is itself the answer.
| Line to check | Where the number must come from | Offer A | Offer B |
|---|---|---|---|
| Net plot area used (sq m) | Plot area after DP road, Regular Line and Reg 14 / 16 / 17 deductions — Reg 30(A)(2) | ||
| Access road width used (m) | Measured on site; exactly 9.00 m sits in the higher band | ||
| FSI assumed | Table 12 for that road width and that location | ||
| Built-up area = net plot × FSI (sq m) | Arithmetic — do it yourself and compare | ||
| Premium FSI payable (Rs) | Premium BUA × ASR land rate for FSI 1 × 50%, Reg 30(A)(6); state the ASR year | ||
| Cessed plots in the scheme (Reg 33(7) only) | 1 = 50% + 5% carpet; 2–5 = 60% + 8%; six or more = 70% + 15% | ||
| Corpus per flat (Rs) | Rs 50,000 floor under 33(9); Rs 40,000 under 33(10); otherwise negotiated | ||
| Bank guarantee (% of project value) | At least 20% — Section 79A directive dated 4 July 2019 | ||
| Completion period from plinth CC | 2 years, extendable to 3 only in exceptional cases — 79A directive |
Our FSI calculator will do the Table 12 lookup and the multiplication for you, and the offer comparison tool lines up area and corpus side by side once you have the figures.
A practical developer scorecard
Give each shortlisted developer a weighted score. Weights below are a sensible starting point — your society can adjust them, but keep delivery capability heaviest.
| Evaluation criterion | Weight | What "good" looks like |
|---|---|---|
| MahaRERA registration & clean complaint record | 20% | Multiple registered projects; few or no complaints; no revoked registrations |
| Completed track record (on-time delivery) | 20% | Several finished society redevelopments delivered on schedule |
| Financial strength & funding proof | 15% | Audited accounts, banker references, sanctioned funding for this project |
| Guarantees & security (20% bank guarantee, escrow, penalty) | 15% | Accepts 20% bank guarantee, RERA escrow and delay penalty in writing |
| Offer quality (area, corpus, rent, timeline) | 15% | Written and comparable; the FSI assumed matches Table 12 for your measured road width; rent matches market; 2–3 year timeline |
| References & site-visit feedback | 10% | Positive, verifiable feedback from societies already redeveloped |
| Transparency & willingness to register agreements | 5% | Agrees to register the development agreement and every PAAA |
Run a fair, standardised tender so every developer answers the same questions in the same format — otherwise the scores are not comparable. The site's tender review service and feasibility report help you set the tender terms and know your building's true potential before you invite bids.
Red flags that should stop you
Some signals mean "walk away," no matter how good the offer looks:
- No MahaRERA-registered project — an automatic failure under the 79A directive.
- Refusal to give the 20% bank guarantee, or to register the development agreement and PAAA.
- Pressure to sign consent letters or accept a token cheque quickly, before the agreement is finalised.
- A committee member, office-bearer or relative connected to the developer — the exact conflict the directive prohibits. See the committee–developer nexus.
- Vague timelines, undisclosed loading, or an offer that changes every meeting.
If a builder later cheats the society, the criminal law does bite: under the Bharatiya Nyaya Sanhita (BNS), 2023 — which replaced the Indian Penal Code — Section 318 covers cheating and Section 316 covers criminal breach of trust (punishable by up to five years). Society disputes with a developer can also go to the Co-operative Court under Section 91 of the MCS Act. But litigation is a last resort; careful selection is what keeps you out of court. For agreement-stage warning signs, read red flags in a development agreement.
How the selection actually happens
Shortlisting and scoring feed into the formal 79A process. The final choice is made in a video-recorded Special General Body Meeting attended by the Registrar's authorised officer, with approval by not less than 51% of the total membership (absentees excluded from that count). For the full sequence — requisition, quorum, tender, and voting — see the 79A redevelopment process. Doing your developer evaluation properly before that meeting is what lets your members vote confidently.
What this means for your society
Treat developer selection as a structured, evidence-based exercise, not a popularity contest. Set your minimum bar from the 79A directive, verify every claim on the MahaRERA portal, test each developer on the five pillars, and score them on a common template so the general body sees the same facts you do. When you insist on a MahaRERA-registered builder with a real track record, a 20% bank guarantee, registered agreements and a fair, comparable offer, you dramatically reduce the risk of delay, shortfall and dispute — and give your redevelopment the best chance of finishing well. If you are ready to begin the right way, you can register your society to get a structured evaluation started.
Related guides & tools
Common questions
What is the most important thing to check before choosing a redevelopment developer?
Check that the developer has at least one MahaRERA-registered project, as required by the Section 79A directive dated 4 July 2019. Then confirm they will give a 20% bank guarantee and register both the development agreement and each member's PAAA. A proven, registered, financially sound builder is safer than any large offer from an unproven one.
How do I verify a developer on the MahaRERA portal?
Go to the official MahaRERA website and search by the promoter's name and each project name. Confirm the registration is valid and active, compare the original completion date with the current one to spot repeated delays, and read the complaints tab and quarterly progress filings. Under Section 3 of RERA, a project cannot be legally marketed without registration.
What guarantees can a society legally insist on from a developer?
The 79A directive requires the selected developer to furnish a bank guarantee of 20% of the project value. RERA adds more protection: 70% of buyers' money must stay in a separate escrow account under Section 4(2)(l)(D), the promoter carries five-year structural defect liability under Section 14(3), and Section 18 entitles members to interest or a refund if possession is delayed.
Can a committee member or their relative be the developer?
No. The Section 79A directive dated 4 July 2019 expressly bars any committee member, office-bearer or their relative from being the developer. This prevents the committee–developer nexus that leads to unfair deals, and it is one of the first conflicts your society should screen for during shortlisting.
How should we compare offers from different developers?
Compare them on a common template covering area, corpus, monthly rent, brokerage, timeline and specifications, so you are weighing like with like. Use the site's offer comparison tool for area and corpus and the rent comparison tool to check the transit rent against market rates. Do not judge on the headline area figure alone.
How do we check whether a developer's offer is based on the correct FSI?
Measure the access road and read Table 12 of the sanctioned DCPR 2034. In the suburbs the permissible FSI is 1.00 for a road less than 9 m, 2.00 from 9 m to under 12.00 m, 2.20 from 12.00 m to under 18.00 m, 2.40 from 18.00 m to under 27 m, and 2.50 at 27 m and above. In the Island City the same bands give 1.33, 2.00, 2.40, 2.70 and 3.00. A road measuring exactly 9.00 m falls in the higher band, so it gets 2.00. Apply the FSI to the net plot area, which under Regulation 30(A)(2) excludes land under DP roads, a sanctioned Regular Line, and Regulation 14 amenity plots, Regulation 16 and Regulation 17 reservations to be surrendered. Multiply net plot area by the table FSI and compare the result with the built-up area each bidder has assumed.
Our building is cessed — does the number of plots in the scheme change what we get?
Yes, and it is the biggest lever a cessed society controls. Under Regulation 33(7) the incentive FSI is set by the number of cessed plots in the scheme: a single plot gets 50% incentive and no additional rehabilitation carpet, 2 to 5 plots get 60% and 8%, and six or more plots get 70% and 15%, in each case subject to the maximum limit. On a flat with 40 sq m of occupied carpet that is 42 sq m on a single plot and 46 sq m in a six-plot composite scheme. The total FSI is 3.00 of the gross plot area, or rehabilitation plus incentive, whichever is more.
Is there a minimum corpus a developer must pay?
Only in specific schemes. Under a Regulation 33(9) cluster or urban renewal scheme the corpus fund is a minimum of Rs 50,000 per tenement, or as directed by the High Power Committee, and it must fund 10 years of maintenance of the rehabilitation buildings. Under Regulation 33(10) slum schemes it is Rs 40,000, or as decided by SRA. For an ordinary society redevelopment that is neither, no regulation fixes any minimum corpus at all, so the figure is purely negotiated and must be written into the registered development agreement.
How long can construction take, and what if the developer delays?
Under the 79A directive, the project must be completed within 2 years of the plinth Commencement Certificate, extendable to 3 years only in exceptional cases. If possession is delayed, Section 18 of RERA entitles members to interest for the delay or a refund with interest, and the 20% bank guarantee can be invoked as security.
Who approves the final developer selection?
The developer is chosen in a Special General Body Meeting that is video-recorded and attended by an authorised officer of the Registrar. Approval requires not less than 51% of the total membership strength, with absentees excluded from that count. Doing your evaluation before this meeting lets members vote on facts.
What legal remedies exist if a developer cheats the society?
Society disputes with a developer can be taken to the Co-operative Court under Section 91 of the MCS Act, 1960. If there is fraud, the Bharatiya Nyaya Sanhita, 2023 covers cheating under Section 318 and criminal breach of trust under Section 316 (up to five years). These are last resorts — careful developer selection is the real protection.
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