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Is MahaRERA Applicable to Redevelopment?

By Tata Capital
19 December 2025
9 mins read
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A redevelopment agreement is a contract signed between the land owner and the organisation tasked with developing the land. It outlines the parties’ duties and the rules and guidelines that will apply to the development of the property. The Maharashtra Real Estate Regulatory Authority (MahaRERA) has outlined the rules that will apply in the case of redevelopment. This article contains information about RERA rules for redevelopment and new FSI rules in Mumbai for redevelopment.

Overview of MahaRERA Act in Maharashtra

Every Indian state must have a Real Estate Regulatory Authority under the Real Estate (Regulation and Development) Act, 2016. It oversees the real estate sector and outlines the steps for dispute resolution. The Maharashtra Real Estate Regulatory Authority, or MahaRERA, was the first to adopt RERA. It serves the following purposes:

Provides guidelines for selling land, houses, and other assets.
Protects consumer interests in real estate transactions.
Provides a quick dispute resolution process using a settlement mechanism.
Hears and resolves buyer complaints.

MahaRERA Rules for Redevelopment

For properties that are considering redevelopment, the following steps need to be followed:

A letter of offer must be made to the community
Agreements must be signed between the parties and the society
Compatibility with the society must be ensured
MCGM sanctions must be in society’s favour
TDR must be updated in the name of the society
An IOD must be obtained
Members’ substitutions must be noted

Once these steps are completed, the following actions take place:

Deconstruction of the structure
Acquiring a CC
Building the new structure
Getting an OC
Changing the existing members

Also, read – RERA Haryana

Common Complaints in Redevelopment Projects

In Maharashtra, several redevelopment schemes for buildings owned by co-operative housing societies are being implemented. The administration of co-operative societies undergoing renovation is the subject of several complaints from Housing Societies, the Housing Federation, and individual members.

A majority of complaints fall under the following categories:

Lack of due consideration for members throughout the redevelopment process.
Opaque tendering process.
Developers are appointed arbitrarily.
Not coordinating the work done by the architects and project consultants.
Conducting business in contravention of the co-operative law, rules, and by-laws.
Failure to implement a fair contract-awarding process.
Agreements with developers lack parity.

Also, read – RERA Odisha

MahaRERA’s Role in Redevelopment Disputes

The State Government established the MahaRERA to safeguard the interests of consumers. Residents of housing societies who are in conflict with their developers over redevelopment problems are not eligible for relief under this Act.

A complaint of a housing society member against their developer for neglecting to deliver newly renovated flats for 11 years was recently dismissed under this Act. MahaRERA ordered that it was not the correct venue to resolve the society’s dispute with the developer because the complainants could not identify any violations of the RERA act 2016.

According to the MahaRERA ruling, the conflict between ordinary citizens, the landowner and the developer do not violate MahaRERA provisions.

Given that redevelopments account for more than 85% of all building projects in Mumbai, the above order that denies any help to the appellants will have broad ramifications. Housing experts caution that MahaRERA would not provide relief for thousands of land owners stuck for years because their redevelopment projects are delayed. This is a noticeable gap, as it is believed that dishonest developers would take advantage of this weakness. At the same time, other members will continue to suffer, and any rule that does not defend the victims’ rights will be seen as worthless.

Also, read – RERA Tamil Nadu

Self-Redevelopment: A Better Approach

Due to delayed project delivery and a lack of faith in developers, several housing societies in Maharashtra have been compelled to turn to self-redevelopment. This method ensures time-bound, cost-controlled, and predictable outcomes. More than 750 housing societies have decided to undertake self-redevelopment in Mumbai alone.

With a government resolution, the Maharashtra government unveiled the self-redevelopment programme for housing societies in September 2019. The goal is to allow local authorities to take charge of the reconstruction process. The responsibilities range from hiring a qualified architectural or construction company and supervising the construction to selling the extra real estate built and splitting the earnings equitably. The autonomy of the process ensures excellence in every way; society members would profit from high-quality building work, contemporary amenities and infrastructure, and time-bound and cost-bound construction. Additionally, by removing the developer from the process and maintaining RERA rules for society handover, there would be no chance of fraud, slowed construction, or loss of space. Landowners can expect an increase in carpet area of up to 40-50% rather than only 15-20%.

Also, read – RERA Delhi

New FSI Rules in Mumbai for Redevelopment

In Mumbai, redevelopment and building of high-rises are now possible because of changes to the regulations governing unified development control and promotion (DCPR). Older buildings’ permitted FSI (Floor Space Index), which was once 50%, decreased to 10% in the previous year. However, the original FSI of 50% has now been reinstated.

High-rises can now be built in Mumbai since the restriction on building height has been raised from 24 to 70 metres. According to new FSI rules in Mumbai for redevelopment, approved FSI (1.1) with 0.5 Premium FSI will be given for general redevelopment. Besides this, the general redevelopment also gets permissible TDR and 60% ancillary FSI. When redeveloping dangerous buildings, a 50% incentive FSI is added with general redevelopment FSI. Additionally, roads that are 9-metre-wide will be considered 12-meter-wide, and structures may be up to 70 metres tall.

Also, know about – Also, know about – RERA ChandigarhRERA Chandigarh

MahaRERA Applicability: Sale vs Rehabilitation Component

Under MahaRERA for redevelopment projects, its applicability is split into sale and rehabilitation components.

The sale component, comprising extra built-up area marketed or sold to new external buyers excluding original residents, mandates full registration before any promotion or booking, as per Section 3 of the RERA Act and MahaRERA. This ensures new buyers receive standard protections like quarterly updates, delay compensation, and grievance redressal through MahaRERA portals.

The rehabilitation part of a redevelopment project (flats given to existing society members or tenants with no sales or marketing) is exempt from MahaRERA registration.

This exemption, upheld by MREAT rulings, means original residents miss out on RERA protections like fixed possession dates or delay penalties. Under MahaRERA redevelopment, they depend on society contracts, cooperative society registrar help, or regular courts instead, raising their risk if projects get stuck.

Also, read – RERA Himachal Pradesh

Upcoming Redevelopment Reforms Under Maharashtra Housing Policy 2025

Upcoming reforms under Maharashtra Housing Policy 2025 focus on making redevelopment more structured, transparent, and resident-friendly. With stronger oversight through MahaRERA for redevelopment projects, the policy aims to reduce delays, disputes, and uncertainty in redevelopment across Maharashtra.

Shift towards cluster redevelopment instead of individual building redevelopment
Encouragement of self-redevelopment by housing societies with government support
Introduction of single-window approvals to speed up redevelopment timelines
Faster redevelopment of old, dilapidated, and unsafe buildings
Greater transparency and accountability in redevelopment processes
Stronger protection of the rights and interests of existing residents
Increased use of government land to support large-scale redevelopment

Overall, these redevelopment MahaRERA rules aim to ensure smoother, faster, and more predictable redevelopment outcomes under the Maharashtra Housing Policy 2025.

Also, read – RERA Andaman

Redevelopment Process Steps in Maharashtra

The standard MahaRERA redevelopment process, followed by cooperative housing societies and redevelopment authorities, involve the following steps:

Consent and Initial Settlement: Members of the society must give written consent (minimum 51% for redevelopment in housing societies). A General Body Meeting (GBM) is held to formally approve redevelopment and document the agreement to proceed.
Appointment of Project Management Consultant (PMC): The society appoints a PMC who guides through the technical, legal, and financial facets of the whole process and helps prepare feasibility reports and tender documents.
Feasibility Report and Tendering: The PMC prepares a feasibility report showing benefits to members, estimated costs, timelines, and other key details. Tenders are then invited from developers based on this report.
Selection of Developer: The society reviews tender proposals with the PMC and selects a suitable developer. A Development Agreement (DA) is signed and legally registered, defining obligations, timelines, penalties, and member rights.
Approvals and Sanctions: The developer seeks necessary approvals from the relevant authority (MHADA, SRA, MCGM, etc.), such as Letter of Intent (LOI), Intimation of Disapproval (IOD), and Commencement Certificate (CC) before construction starts.
Temporary Relocation and Construction: Existing members are temporarily relocated either via transition accommodation arranged by the developer or monthly rent compensation agreed in the DA. The old building is then demolished and new construction begins.
Completion and Handover: After construction, the developer obtains the Occupation Certificate (OC), new flats are allocated to original members as per the DA, and the conveyance deed is executed to transfer land ownership to the society.

Also, read – RERA Andhra Pradesh

Does MahaRERA Handle Complaints Related to Redevelopment?

MahaRERA has handled around 30,000 complaints since its inception in 2017. However, it has consistently ruled that redevelopment projects fall outside its jurisdiction.

Redevelopment MahaRERA rules involve tackling complaints related to the sale component of a redevelopment project. It means that if a flat is being sold to an external buyer and the project is registered with MahaRERA, that part can be complained about under RERA.

For issues like delays in rehab flat possession, transit rent, vacating disputes, or internal society vs developer disputes, MahaRERA lacks jurisdiction under existing law because these do not fall under the Act’s definition of “allottee” or “sale”.

Because of this gap, the Maharashtra Housing Policy 2025 proposes a separate RERA-like law for redevelopment projects to give homeowners and society members a formal grievance redressal mechanism.

Conclusion

The worst aspect of this transition from “old to new” is that hundreds of rehabilitation projects in Mumbai are hampered by corruption and excessive delays in their completion. This issue is not taken seriously by MahaRERA. As a result, every developer and promoter looks for a loophole to exploit. RERA rules for redevelopment need to be updated to address this issue, and these rules must also apply to redevelopment. Visit Tata Capital to get affordable Home Loan.

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FAQs

Is MahaRERA applicable to redevelopment projects in Maharashtra?

Redevelopment MahaRERA rules are applicable only to the sale component of a redevelopment project, where new flats are sold to outside buyers. It does not regulate the entire redevelopment process. The rehabilitation portion meant for existing society members is generally outside MahaRERA’s scope.

Why are rehabilitation flats not covered under MahaRERA?

Rehabilitation flats are not covered under MahaRERA because they are not sold for money. These flats are provided to existing society members or tenants as part of the MahaRERA redevelopment agreement, in exchange for surrendering their old flats. Since MahaRERA is designed to regulate sale transactions, rehab flats do not fall within its legal definition.

Can society members file complaints under MahaRERA for redevelopment delays?

In most cases, society members cannot file complaints under MahaRERA for delays related to rehabilitation flats. This is because they are not considered “buyers” under the RERA Act. Issues such as delay in possession, transit rent disputes, or agreement breaches must usually be taken to civil courts, cooperative courts, or other authorities.

What part of redevelopment needs MahaRERA registration?

Only the sale portion of a redevelopment project needs MahaRERA registration. This includes flats that the developer sells to new purchasers in the open market. The rehabilitation portion, which involves providing free flats to existing members, does not require MahaRERA registration as there is no sale involved.

Are there new redevelopment rules introduced in Maharashtra in 2025?

Maharashtra Housing Policy 2025 introduces new reforms for redevelopment. These include faster approvals, encouragement of cluster redevelopment, support for self-redevelopment by housing societies, and better monitoring mechanisms. While these reforms strengthen redevelopment governance, they are policy-level changes and not direct amendments to MahaRERA law.

Does MahaRERA handle complaints about rehab flats?

MahaRERA for redevelopment projects does not generally handle complaints related to rehabilitation flats. Complaints about delayed possession, inadequate rent compensation, or redevelopment disputes involving rehab flats are considered outside MahaRERA’s jurisdiction. Such matters must be addressed through redevelopment agreements, cooperative laws, municipal authorities, or courts.

What is the redevelopment process under MahaRERA in Maharashtra?

In Maharashtra, redevelopment begins with society consent and developer appointment. Approvals are taken from local authorities. The sale portion of the project is registered under MahaRERA. Construction follows, and new flats are handed over after the Occupation Certificate is received.

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