Frequently Asked Questions
During the redevelopment process, the developer bears all costs, including the complete redevelopment cost, stamp duty and registration charges on the development agreement, cost of construction the new building and cost of probable risk of the development. The society does not bear any of these costs. However, the members must bear all their individual agreement stamp duty and registration.
While valuing the property to arrive at stamp duty, the below mentioned formula is used: the existing area of flat is valued on construction cost and the additional area, i.e. the incentive given by the developer, shall be valued at the market rate. For e.g., a flat of carpet area of 500 sq. ft. is offered, and the developer offers 20% (i.e. 100 sq. ft) additional area i.e.100 sq. ft. is the incentive area. Hence, 500 sq. ft. will be valued at rate per sq. ft. of construction cost determined by the ready reckoner rate, and 100 sq. ft. will be valued at market rate as determined by the ready reckoner rate.
The members will be given possession of the new premises on completion of the new proposed building. To safeguard the interest of the members, possession of the sale flats shall be given simultaneously with the possession of members flat.
The redevelopment work shall be completed within 24-30 months depending on the size of the project.
To oversee the progress of the project, the society may appoint a project management consultant on their behalf and expense.
The society members shall be provided with displacement compensation. However, they will have to search for temporary accommodation on their own.
Assistance will be provided to senior citizens above the age of 65, living on their own, in finding temporary accommodation.
The developer shall pay members a one-time charge to shift their household items from existing premises to temporary alternate accommodation and back to the permanent alternate accommodation.
The rent will be paid upfront for the first 12 months, and the rest of it shall be paid by way of post dated cheques. For example, if the rent is 5000 per month and the shifting month is January, then the company will issue one current-dated cheque for 60000 and the rest as post dated cheques of 5000 shall be from thirteenth month i.e. January.
Adequate car parking, society office and toilet, security cabin, bore well (wherever possible), paving as chequered tiles and a 5-years guaranteed waterproofing of terrace.
In addition, if the member requires additional area over and above the area allocated to him, such an incentive is provided by the developer. The member can purchase additional area at a concessional rate, provided that adequate FSI is available with the developer as per mutual agreement with the members.
open / still parking shall be divided between developer and society as per mutual discussion between the developer and the society.
The society members should decide which system of allotting new apartment is the best for them. The most popular system at present is the clockwise allotment, in which the new apartments are numbered on the basis of which floor that they are on. For example, if the old society had four floors (including ground floor) with four flats on each floor numbered 101, 102, 103, 104 etc., the new society may have seven floor (including ground floor) with two flats on each floor. In this case, the persons who earlier stayed in 103 and 104 will now be in 201 and (on the next floor) respectively. The lottery system is another popular system to allocate apartments. In this case, the members themselves make a lottery and decide what flats they should occupy.