The environment in Mumbai is changing to incorporate a slew of redevelopment projects that have already begun or are about to commence.
Redevelopment projects are gaining traction in the current scenario due to different government incentives, a scarcity of available land for new construction, and many old and decaying structures that need to be renovated. Developers previously focused solely on new development projects and avoided redevelopment projects have now entered the redevelopment market by making competitive offers to existing societies/landowners. The demand for redevelopment is at an all-time high, ensuring ample opportunity for developers to participate and claim a share of the redevelopment pie.
Some of the highlighted key judgments that have been passed recently in respect of redevelopment projects and their impact on developers undertaking such projects are – Minority members of a society cannot stall redevelopment, Rights of tenants v/s rights of the owner, Stamp duty on Permanent Alternate Accommodation Agreements (PAAA) where the Development Agreement has been stamped, Transit rent not taxable, and Arbitration clause in a Development Agreement cannot be invoked by individual members.
