Buying into a Redevelopment Project in Mumbai: IOD Stage, Risks and Checks
Dasadia Editorial Team · Updated August 2026
The line that matters is the third one. Until the old occupants have moved out and the Commencement Certificate is in hand, a Mumbai redevelopment project cannot legally be advertised, booked or sold, because MahaRERA registration requires that certificate and Section 3 of the RERA Act bars marketing without registration.
So if someone is offering you a flat in a project that has only reached IOD, ask why.
The answer is usually that the developer wants early cash at a discount and is willing to structure it as something other than a sale. Sometimes that works out. Often the buyer ends up holding an unregistered agreement, no RERA recourse and no realistic exit for three to five years. This guide sets out what each approval stage actually certifies, where the legal risk sits, how the society-side rules affect you even though you are not a member, and the documents to insist on before any money moves.
Key takeaways
- An IOD is not permission to build. It is a conditional list of requirements the developer must satisfy before the Commencement Certificate can be issued.
- In Mumbai the CC generally cannot be granted until existing occupants have vacated and handed over possession, so an IOD-stage project may still have a fully occupied building standing on it.
- MahaRERA registration is mandatory before a project can be advertised or sold, and the Commencement Certificate is normally required to obtain it.
- In a redevelopment the land title stays with the society. The developer holds development rights, so verify the registered Development Agreement and power of attorney rather than a title deed in the builder's name.
- Society consent for redevelopment now requires 51% of members, reduced from 70%, under the Section 79A directions.
- Developers are required to furnish a bank guarantee, commonly 20% of project cost under the July 2019 government resolution, before members vacate.
- MahaRERA held in Pulin CHS v Tirupati Developers that it will not hear disputes arising from a development agreement. Its jurisdiction runs between developer and free-sale allottee, which is the seat you occupy as an outside buyer.
- Typical Mumbai redevelopment runs three to five years, longer for cluster schemes.
Source: MahaRERA – Maharashtra Real Estate Regulatory Authority · S&R Associates – legal frameworks guiding society redevelopment in Maharashtra · Lexology – legal frameworks for society redevelopment in Maharashtra · NoBrokerHood – rules for redevelopment of societies in Mumbai · Redevelopment of Housing Society – 51% consent for cessed, MHADA and SRA buildings
What an IOD actually certifies
Intimation of Disapproval is the least helpful name in Indian real estate. It isn’t a rejection. It is the municipal authority confirming that the submitted plans broadly align with zoning, building codes and the development control rules, followed by a list of conditions the developer must clear before construction can start. Those conditions typically include no-objection certificates from the fire department, environment authorities, the traffic department and, near an airport, the aviation authorities. Each one is a separate application with its own timeline, and any one of them failing stops the project.
Read the IOD as a statement of what remains unresolved. It tells you the project has entered the formal approval pipeline, and nothing more than that.
An IOD also doesn’t guarantee that every proposed floor gets built. Height clearances, TDR loading and FSI entitlements can all move between IOD and the final sanctioned plan, which is why the sanctioned plan and the CC matter more than the IOD does.
Why the IOD stage carries the risk it does
Here’s the dependency chain that catches buyers out. The society passes its resolutions and signs a Development Agreement. The developer loads TDR, submits plans and secures the IOD. Then the developer has to clear every IOD condition, and, separately, get every existing occupant to vacate and hand over possession. Only then does the BMC issue the Commencement Certificate, and only then can demolition begin. A single member who refuses to move can hold that certificate up, and the 51% consent rule does not physically empty a flat.
The practical result is that a project sitting at IOD has an unknown amount of time ahead of it. Not an unknown construction period, which you could estimate, but an unknown legal and negotiation period before the clock even starts.
We looked for a reliable published figure on how long Mumbai projects sit between IOD and CC and could not find one, which itself tells you something. Societies and developers rarely publicise the gap. The overall three to five year redevelopment timeline you see quoted usually measures from CC, not from the first resolution.
Buy at IOD stage only if you can afford for it to take twice as long as promised.
Who owns what in a redevelopment
This is the structural difference between a redevelopment and an ordinary construction, and most buyers get it wrong. The land and the building belong to the cooperative housing society. The developer does not own them. What the developer holds is a bundle of development rights, granted through a registered Development Agreement and usually supported by a power of attorney. Your flat comes out of the free-sale component, meaning the portion the developer is permitted to sell to outsiders after rehousing the existing members.
So the document you need is not a title deed in the builder’s name, because one won’t exist. You need the registered Development Agreement, the power of attorney, the society’s own title documents and a search report confirming the chain.
Get an independent search report. Every time, on every redevelopment.
Check whether the developer has mortgaged the project or the development rights to raise finance. A mortgage isn’t automatically a problem, and most funded projects carry one, but the release mechanism has to be written down and your lender will insist on a no-objection letter before disbursing.
The society-side rules that affect you as an outside buyer
You are not a member of the society and you have no vote, but the procedural health of the society’s process determines whether your flat ever gets built. The framework sits in the directions issued under Section 79A of the Maharashtra Cooperative Societies Act, revised in 2019 and tightened since. The process begins on a written requisition from at least a quarter of the members, moves through a special general body meeting, the appointment of a project management consultant and a tendering exercise, and requires consent from at least 51% of members. That threshold came down from 70%, and the Bombay High Court has repeatedly held that a minority cannot block a properly approved redevelopment.
Three procedural safeguards are worth checking directly. Special general meetings must be video recorded. The Development Agreement must be registered, not merely signed. And the developer is expected to furnish a bank guarantee, commonly set at 20% of project cost under the July 2019 resolution, before members vacate.
Each existing member also signs a Permanent Alternate Accommodation Agreement covering their new flat, transit rent and timelines. Those obligations are a first call on the developer’s cash flow, ahead of anything owed to you. A developer paying transit rent to eighty families every month for a project that has stalled is a developer under pressure, and that shows up in construction quality long before it shows up in any public notice. You won’t be told. You have to look.
Source: S&R Associates – legal frameworks guiding society redevelopment in Maharashtra · Lexology – legal frameworks for society redevelopment in Maharashtra · Puranik Associates – CHS redevelopment process and the 51% consent rule · NoBrokerHood – rules for redevelopment of societies in Mumbai · Asmita India Realty – redevelopment of housing societies in Maharashtra
Your MahaRERA position is better than a society member's
This surprises people. In Pulin Cooperative Housing Society v Tirupati Developers, MahaRERA held that the RERA Act does not empower it to entertain disputes arising from a development agreement. Its jurisdiction runs between a promoter and an allottee of units sold in the free-sale component.
You are that allottee. A society member fighting over the Development Agreement has to go to the cooperative registrar or the civil courts, while you can approach MahaRERA over delay, deviation from the sanctioned plan or a shortfall in carpet area. That protection only exists if the project is registered and your agreement names the registered project, so confirm the registration number belongs to your building and your phase rather than an adjacent wing.
Check that number yourself on the portal. Don’t accept a photograph of a certificate.
The checks to run before you pay anything
Documents to see
- MahaRERA registration certificate, with the number matching your specific building and phase.
- Commencement Certificate, and confirmation of which floors it currently covers.
- The IOD together with the list of conditions and the status of each pending NOC.
- Registered Development Agreement and power of attorney between the society and the developer.
- Society's title documents and an independent search or title report.
- The sanctioned plan showing the approved layout, and your flat on it.
- Mortgage details and the release or no-objection mechanism, if the project is funded.
- The draft agreement for sale, stating RERA carpet area rather than saleable area.
Red flags
- Any offer to sell or take a booking before MahaRERA registration exists.
- A RERA number that belongs to a neighbouring building or an earlier phase.
- An occupied old building on site with the developer promising demolition next month.
- A promoter entity in the documents that differs from the brand name being marketed.
- Verbal assurances on amenities, parking or possession that nobody will add to the agreement.
- Pressure to sign before your own lawyer has read the Development Agreement.
Use your own lawyer. The developer’s lawyer drafted those documents to protect the developer, which is their job, and a few thousand rupees of independent review is the cheapest insurance available on a purchase this size. In our reading of the redevelopment disputes that reach MahaRERA, the recurring failure isn’t a dishonest developer so much as a buyer who never read what they signed.
Frequently asked questions
Intimation of Disapproval is a conditional approval from the municipal authority confirming that submitted plans broadly conform to zoning and building rules, subject to a list of conditions and no-objection certificates the developer must clear. Despite the name it is not a rejection, and it is not permission to build.
Not lawfully. Section 3 of the RERA Act bars advertising, marketing, booking or selling without registration, and MahaRERA registration normally requires the Commencement Certificate. A project at IOD alone should not be taking bookings.
The IOD lists what must still be resolved. The CC is the authorisation to actually begin construction for the approved stage. The CC is issued only after IOD conditions are met and the required NOCs are in place.
In Mumbai the Commencement Certificate is generally granted only once existing occupants have vacated and handed over possession, since demolition cannot lawfully begin otherwise. One holdout family can delay the certificate for the whole project.
At the same approval stage the construction risk is comparable, but redevelopment adds a layer. The title sits with the society, the developer holds only development rights, and obligations to existing members rank ahead of yours on the developer’s cash flow.
The cooperative housing society. The developer holds development rights under a registered Development Agreement, usually with a power of attorney. There will be no title deed in the builder’s name, so do not ask for one.
At least 51% of members, reduced from the earlier 70% threshold, under the directions issued through Section 79A of the Maharashtra Cooperative Societies Act. Many developers still prefer a higher consensus before executing the final agreement.
Not legally, once the required majority has approved it. The Bombay High Court has held repeatedly that a minority cannot obstruct a properly approved redevelopment. In practice a member who refuses to physically vacate can still delay the Commencement Certificate.
Commonly 20% of the project cost, under the government resolution of July 2019, furnished before members vacate. Confirm the guarantee is live and check its expiry, since a lapsed guarantee protects nobody.
As a free-sale buyer, yes. MahaRERA’s jurisdiction runs between promoter and allottee. It held in Pulin CHS v Tirupati Developers that it will not hear disputes arising from the development agreement itself, which is the society’s route rather than yours.
Three to five years is the common range, measured from the Commencement Certificate. Cluster and larger schemes run longer, and the period between the first society resolution and the CC is additional and highly variable.
Usually once it crosses 30 years of age, or earlier if the BMC or MHADA declares it structurally unsafe or dilapidated. A structural audit typically establishes this before the process starts.
Yes, subject to the usual checks. Lenders want MahaRERA registration, the Commencement Certificate, the registered Development Agreement, a clean title report and, where the project is mortgaged, a no-objection letter releasing your flat.
RERA carpet area. Confirm the figure against the MahaRERA registration for the project, and ask for the loading factor in writing if the developer is quoting saleable area in marketing material.
They fall under separate development control provisions, and the consent threshold for cessed, MHADA and smaller buildings was also brought down to 51%. The approval chain through IOD and CC works the same way.
Verified key facts
- IOD is a conditional approval listing requirements and NOCs, not permission to construct. The Commencement Certificate authorises construction.
- In Mumbai the CC is generally issued only after existing occupants vacate and hand over possession, and demolition cannot begin before the CC.
- Section 3 of the RERA Act prohibits advertising, marketing, booking or selling a project without registration. MahaRERA registration normally requires the Commencement Certificate.
- Society redevelopment procedure is governed by directions under Section 79A of the Maharashtra Cooperative Societies Act, 1960, through government resolutions dated 3 January 2009 and 4 January 2019.
- The process begins on a written requisition from not fewer than one-fifth of members, followed by a special general body meeting and appointment of a project management consultant.
- Member consent required for redevelopment is at least 51%, reduced from 70%. The same reduction was extended to cessed, MHADA, SRA and smaller buildings.
- The Bombay High Court has repeatedly held that a minority of members cannot block a properly approved redevelopment.
- A developer bank guarantee, commonly 20% of project cost, is required under the government resolution dated 4 July 2019 before members vacate.
- Special general meetings must be video recorded and the Development Agreement must be registered under the revised guidelines.
- Each member executes a Permanent Alternate Accommodation Agreement covering the new flat, transit rent and timelines.
- MahaRERA held in Pulin Cooperative Housing Society v Tirupati Developers that it cannot entertain disputes arising from a development agreement, its jurisdiction being between promoter and free-sale allottee.
- Buildings generally become eligible for redevelopment at 30 years of age, or earlier if declared structurally unsafe by the BMC or MHADA. Typical project duration is three to five years.
Sources and references
- MahaRERA – Maharashtra Real Estate Regulatory Authority
- MCGM – Brihanmumbai Municipal Corporation
- IGR Maharashtra – Department of Registration and Stamps
- S&R Associates – legal frameworks guiding society redevelopment in Maharashtra
- Lexology – legal frameworks for society redevelopment in Maharashtra
- Puranik Associates – CHS redevelopment process and the 51% consent rule
- Redevelopment of Housing Society – 51% consent for cessed, MHADA and SRA buildings
- NoBrokerHood – rules for redevelopment of societies in Mumbai
- Asmita India Realty – redevelopment of housing societies in Maharashtra
- Redevelop Mumbai – stage-wise redevelopment process
- L&T Realty – what an IOD means in real estate
- Ashwinder R Singh – IOD, approval sequencing and project risk
- A2Z Realtors – buying a redevelopment flat in Mumbai, document checks
Disclaimer: Redevelopment is one of the most document-heavy transactions in Indian property, and this article is a general explanation of how the approval chain and the society framework work. It is not legal advice, and we are neither lawyers nor your advisers. Procedures under Section 79A, consent thresholds, bank guarantee requirements and development control provisions have been amended several times and can change again by government resolution or notification. Individual projects also vary by the category they fall under, whether cessed, MHADA, SRA or a private society scheme. Nothing here describes any particular project. Verify registration and carpet areas on the MahaRERA portal, approvals with the MCGM, and the title chain through a search report, and engage your own advocate to read the Development Agreement and the agreement for sale before you part with any money.
Prefer a project past the approval stage?
153 East by Dasadia Developers LLP is a freehold residential development in J.B. Nagar, Andheri East, with 1 to 4 BHK configurations close to the Aqua Line at Marol Naka, the Western Express Highway and both airport terminals. MahaRERA registration no. PR1180002502968, with approvals and carpet areas verifiable on the MahaRERA portal. Ask us for the configuration sheet with RERA carpet areas and indicative pricing, or book a site visit. Pricing is indicative and subject to change.
