The Real Cost of Redevelopment Dreams: FSI TDR Disputes Mumbai Uncovered

Mumbai’s skyline is changing every day. As old housing societies give way to sleek towers under redevelopment, members are promised bigger flats, better amenities, and financial benefits. But soon after signing the redevelopment agreement, many residents face a harsh reality: Who gets the extra area from additional FSI or TDR? Is the benefit shared fairly? This article dives deep into the heart of FSI TDR disputes Mumbai, breaking down legal rights, society-builder responsibilities, and what flat owners must do to protect their share. We’ll explain society FSI benefit sharing, address redevelopment profit sharing legal questions, and offer practical guidance based on Indian law.

• What Will You Learn?

1. Meaning and laws behind FSI and TDR
2. Legal remedies and how to avoid common redevelopment pitfalls
3. Real-world case examples from Mumbai
4. Your rights as a society member under Maharashtra law
5. Actionable steps for fair redevelopment profit sharing

Understanding FSI TDR Disputes Mumbai Redevelopment

• What is FSI?

FSI (Floor Space Index) is the ratio of the total built-up area to the total plot area. In simple terms, it controls how much you can build on a given plot.

• What is TDR?

TDR (Transferable Development Rights) allows developers to build more by acquiring rights from other land parcels, usually as a reward for giving land to civic bodies for public use.

1. Legal Framework in Maharashtra

The use of FSI and TDR in redevelopment is governed by:

• DCPR 2034 (Development Control and Promotion Regulations)
• MRTP Act, 1966
• RERA (Real Estate Regulatory Authority)
• MOFA (Maharashtra Ownership Flats Act)
• Maharashtra Co-operative Societies Act

Mumbai offers incentive FSI, fungible FSI, and TDR benefits to make redevelopment feasible. But these incentives can become legal grey zones, sparking FSI TDR disputes Mumbai when transparency is missing.

2. Society FSI Benefit Sharing: Legal & Fair?

The society must receive any additional benefit from extra FSI or TDR unless a written agreement states otherwise.

But here’s the problem:

Many redevelopment agreements are vague, or favour developers. This leads to unequal distribution, and members end up getting far less than what the law entitles them to.

3. Real-World Problems in FSI TDR Disputes Mumbai

• Hidden FSI Profits by Developer

Builders often secure more FSI/TDR than disclosed, using it to build sale flats without increasing the size of rehab flats or corpus fund for society members.

Example: A developer uses 35% additional fungible FSI to build luxury apartments but gives only a token increase to existing members. Members later discover the profits weren’t shared.

• Misuse of Fungible FSI

Fungible FSI (free extra FSI) benefits society members and must be used to provide them larger flats. Courts have ruled that developers cannot divert it to sale components.

Case: In a Bombay High Court case, the court held that fungible FSI meant for rehab must benefit the original flat owners, not the developer.

• One-sided Redevelopment Agreements

Some agreements do not explain how redevelopment profit sharing legal structure works. This causes confusion and legal battles later.

• Delayed Projects and Non-Compliance

Many developers delay possession, fail to deliver promised amenities, or go bankrupt midway. Societies are then left in limbo with demolished buildings and no compensation.

4. Judicial Precedents in FSI TDR Disputes Mumbai

• Kukreja Construction v. SOM: The Supreme Court ruled that developers must honour TDR benefits generated at the cost of the landowner.
• Purnima Talkies v. Dahanu Nagar Parishad: TDR cannot replace monetary compensation unless there’s explicit consent.
• Shankar CHS v. XYZ Developer: Bombay High Court held that extra FSI/TDR derived from society land must be shared unless society consents otherwise.

5. Legal Remedies & Rights of Society Members

• Review and Draft a Strong Development Agreement

1. Specify FSI/TDR quantum and usage
2. Clearly define how the society and members will share the FSI benefits.
3. Include penalties for delay or fraud
4. Add a dispute resolution clause

• Take Legal Action if Needed

1. RERA Complaints: For non-disclosure, unfair allocation, or delay
2. Civil Courts: For breach of contract
3. Co-operative Courts: Under Maharashtra Co-operative Societies Act
4. Writ Petition: For constitutional violations (e.g., right to property under Article 300A)

6. Practical Steps to Avoid FSI TDR Disputes

• Do Your Due Diligence

1. Hire an independent legal expert
2. Ensure the developer has RERA registration
3. Check DCPR provisions and FSI calculations
4. Pass a society resolution before signing any agreement

• Maintain Records

1. Sanctioned plans
2. Correspondence with builder
3. Society meetings and approvals
4. Copies of IOD, CC, and TDR certificates

• Things to Avoid

1. Never sign vague or one-sided agreements
2. Don’t rely on verbal promises
3. Don’t give blanket authority to builders
4. Don’t ignore legal notices or RERA deadlines

Seek professional help immediately if your society is facing any FSI TDR disputes Mumbai.

7. Timelines and Compliance Tips

• Claim incentive TDR within 36 months (DCPR Clause 4.1.1)
• File RERA complaints within 60–90 days
• Civil suits may take 2–3 years, so early action is better
• Always conduct legal and financial audits during redevelopment

Conclusion / Takeaway

FSI TDR disputes Mumbai are not just about numbers they impact your home, rights, and community’s future. As a society member, you must ensure fair society FSI benefit sharing and secure your legal entitlements.

The best way to prevent disputes is to act early, stay informed, and engage experienced legal professionals.

Disclaimer

This article is intended solely for general informational purposes and does not amount to legal advice. Readers are encouraged to consult a qualified legal professional for advice customised to their specific situation. Legal matters can be complex, and expert guidance is essential to protect your rights and interests effectively.

About Tigde Law Firm

Tigde Law Firm is recognised among the top 10 law firms in India, offering full-service legal expertise in complex areas including EOW, ED, corporate law, property, builder disputes, divorce, civil, commercial, and criminal cases. Headquartered in Thane with offices across Mumbai and Navi Mumbai, Tigde Law Firm serves clients nationwide with a strong team of over 100 lawyers. From local courts to the High Court and Supreme Court, TLF leads with trusted, result-driven advocacy.

Founded by Sachin Subhash Tigde and Shubhash Tigde, both experienced High Court lawyers in Maharashtra with a legacy of over 45 years and second-generation expertise, the firm has handled more than 5,000 cases. With 50+ in-house advocates across Mumbai, Navi Mumbai, and Thane, Tigde Law Firm is widely regarded as the best law firm in Thane and home to some of the most reliable advocates and lawyers in Thane. Specialising in property and redevelopment matters, RERA compliance, society disputes, divorce, NCLT, civil, criminal, corporate, and IP law, TLF delivers clarity and confidence to clients facing complex legal challenges.

Call Now for professional legal assistance legal matters:

• Email: inquiry@tigdelawfirm.com
• Phone: +91 9326261981