In cases of redevelopment, it is said that until you do not leave the society, you are the KING. The day on which you hand over your property to the builder for redevelopment and leave the society, the builder becomes the KING.

Mumbai has become the capital of corruption, especially in the construction business, perhaps due to the highest property rates in India. Cheating property buyers, flouting the rules, obtaining the necessary permits and approvals sometimes in advance, selling refuge and other FSI-free areas, and constructing and selling illegal floors are common practices in the financial capital of India these days.

Prospective housing societies dreaming of redeveloping their property often get confused about choosing the right builder. The residential property redevelopment market is booming, and numerous small-time builders and third-tier real estate companies have joined the race to claim their share of this lucrative market.

Builders play a vital role in the redevelopment sector. Being rehoused in a redeveloped building is a lifelong dream for a middle-class family, and housing societies should not take any chances.

There are numerous cases on record where the dreams of innocent middle-class families are shattered when the redevelopment projects undertaken by such builders chosen by housing societies are neither completed within the given time nor are the promised facilities made available or provided.

Before selecting a builder, housing societies need to learn more about the builder’s background. Choosing the right builder is crucial and important because it is the builder who constructs your dream home. Here are some tips and a guide for choosing the right builder:

1. Word of mouth referrals: Seek recommendations from others who have had successful redevelopment projects in nearby societies or from friends or colleagues.

2. Background and reputation check: Research the builder’s track record, completed projects, ongoing projects, and future projects. Visit their office, completed buildings or projects, and gather feedback from previous customers.

3. Membership in respected trade organizations: Ensure that the builder is a member of respected trade organizations or builder associations, such as the Builders’ Association of India (BAI) and the Confederation of Real Estate Builders Association of India (CREDAI). These organizations have strict ethical codes of conduct that member builders must adhere to.

4. Avoid being solely guided by lucrative offers: Do not make decisions solely based on attractive offers from builders, as these can lead to project delays or abandonment.

5. Compensation agreement for project delays: Check if the builder has a compensation agreement that specifies penalties for delayed possession beyond the agreed-upon date. Builders who offer excuses to evade penalties can be taken to consumer court for breach of contract and fraud.

A recent landmark judgment delivered by a State Commission has provided relief to a harassed couple in Matunga. The Maharashtra State Consumer Disputes Redressal Commission has directed a builder to pay compensation to the couple for the delay in delivering possession of their flat.

Builders who undertake redevelopment projects should specify in the Development Agreement, in writing, the date by which possession of the flat will be handed over. Failure to do so can result in penalties under both the Consumer Protection Act and the Maharashtra Ownership Flats Act. Since there is currently no real estate regulator, unscrupulous builders take advantage of this situation, often delaying projects due to financial constraints or diversions of funds to acquire additional projects beyond their financial capacity.

Choose your builder wisely to avoid potential issues in redevelopment projects.