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aakash singh   31 May 2026

Query regarding negotiation with builder

Hi Reputed Lawyers,

I live in a cooperative housing society in Mumbai. My society has gone under redevelopment and there are 90 members in the housing society. I have one flat of 644 square feet and one flat of 390 square feet. Apart from this I have 2 garages of 180 square feet each. The market rate is around Rs60000 per square feet in my area. The society has land area of 6000 square metres with an FSI of 4. The builder has come up with an offer of 82% on the carpet area. The land of the society is freehold. 

Question:

1). What should I demand (money) from the builder at the time of negotiation if I want to move out of the society and not participate in redevelopment process???

2). How much money should I demand from the builder???



 3 Replies

T. Kalaiselvan, Advocate (Advocate)     01 June 2026

The builder's offer of 82% additional carpet area is a good offer, it reflects just how profitable this 6,000 sq. m. plot is with an FSI of 4. You must use this 82% premium to calculate your future entitlement, because that is what you are giving up. Builders usually offer the area bonus on flats. For this calculation, we will assume the 82% applies to your flats, while garages are typically compensated at a flat market rate or a slightly lower bonus. 

When you walk away from a redevelopment project, you shouldn't just accept the raw market rate of your current flat. You must be compensated for the market value of your future promised space, plus hardship allowances. You should demand between Rs 14.00 \text{ Crores} and Rs 14.50 \text{ Crores} from the builder to completely exit the society. Do not settle for anything less than Rs 13.5 Crores as a absolute baseline.

Do not sign the standard permanent alternate accommodation agreement (PAAA). You require a specific Deed of Assignment / Absolute Sale Buyout Agreement explicitly stating that you are relinquishing your shares and rights in the society to the builder/society in exchange for a lump-sum financial settlement. The builder pays the stamp duty on this.

Dr. J C Vashista (Advocate )     02 June 2026

This is purely personal decision depending upon circumstances prevailing market and bargaining /negotiation power of  the parties.

I think builder would have the day being professional in the field.

P. Venu (Advocate)     05 June 2026

The posting sggests no legal elements or legal issue.


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