Compensation for business in redevelopment

Generally when a building like a co-operating housing society building goes for redevelopment the existing residential flat owners are given temporary accommodation elsewhere during the construction period of the new building. Nowadays cash compensation is given instead of actual accommodation When cash compensation is given if the construction of the new building is delayed the original flat owners may have to bear the additional cost themselves.  If there were shops the shop keeper will suffer business loss. Mostly redevelopment work is undertaken when additional FSI is available and all the new construction cost can be borne by the sale of the additional area at the current market rate. When there were shops also in the old construction, I do not know how business loss can be compensated. All these factors will be there in re-construction of MHADA buildings also. A re-development is like a business venture and there are risks.

This property is going for redeveloment, hence it is pertinent for you to peruse the development agreement and understand the terms of the DA.

You cannot claim any compensation for the loss in business due to redevelopment.

If you have any objection to this redevelopment then you can even consider obtaining an order of injunction for the substantial reasons that you rely upon through court of law.

No compensation can be claimed / allowed for business loss when tenanted building is taken over for redevelopment.

As a tenant if you do not agree for redevelopment of the old and delapidated rented premises you can move to Rent Controller through a local prudent lawyer.