Tips and criteria for selecting developer.

1. Sudhir Vaidya How to select the Developer?
12) How to select the Developer?
Selection of the Developer
1 Developer should be from the panel maintained by Government/Federation / Registrar
of Co-operative societies / MHADA.
2 Bio data of directors and key personnel should be obtained. The details of his
organization, key personnel, staff strength etc. should be obtained. What is his Brand
Value and reputation in the Reality Market? His Experience in the Reality Market should
be reviewed. Whether he is easily available for any urgent discussion? How is his
relationship with MCGM – Government?
3 Financial position of the Developer should be reviewed. He should submit copies of
Audited Accounts, Audit Report, IT Returns, Wealth Tax Returns, Vat Returns, and
Service Tax Returns for last 5 years. Whether he has the requisite capacity to raise the
necessary Funds?
4 Developer from Corporate field should be selected. Developer carrying on business in
individual name, Proprietary firm or Partnership firm, LLP should not be appointed.
5 The details of Redevelopment projects (Name, Address, No. Flats constructed, Total Plot
area, Built up area, timely completion, project delays, delay in obtaining occupation
certificate - completion certificate etc) executed in last 5 years and details of projects
under execution as on date should be obtained. Relationship with MCGM, Political
Parties etc. should also be reviewed.
6 The copies of all necessary registrations, certificates, empanelment etc. should be
obtained. (Refer Para No. 16)
7 Income Tax Clearance Certificate should be obtained.
8 Statement of Legal cases filed against the developer and status as on date should be
obtained.
9 Panel of Managing committee members & Senior / Experienced members / PMC should
visit the Redevelopment projects executed 5 years back/executed recently / under
execution by Developer before any final decision is taken. The agreements entered by
these societies and their feedback on the developer may also be reviewed.
10 Confidential report of the developer may also be obtained from the office bearers of
Redeveloped societies done by the developer & from their Bankers.

2. Sudhir Vaidya How to select the Developer?2
11 Solvency Certificate should be obtained from his Bankers.
12 How much bank guarantee he is willing to offer should be specifically noted.
100 % Bank Guarantee equivalent to construction cost (of Towers accommodating existing
members / other necessary infrastructure) covering for the entire period of the project
should be obtained for our safety.
13 The Developer should be subjected to 3 Cs Test namely Capital (Financial position)
Capacity (Technical, Manpower) and Character (Brand value, Goodwill)
The Circular dated 03-01-2009 has also stated that any Committee member or Office
Bearer of the Society should not be the Developer or relative of the Developer.
(Para 11 / Sub Para 12 / Page 5)
14 Separate discussion should be held with each developer after he submits his proposal.
Three developers should be short listed. Developer should give their presentation at the
time of SGM.
15.0 Disclaimer:
15.1 I do not claim that this is the exhaustive note for the selection of Developer. PMC /
Technical Team appointed by the society should consider these suggestions before short
listing the Developers.

3. Sudhir Vaidya How to select the Developer?3
16.0 Annexture – Details of Registrations with various Authorities.
Name of the Authority Since
16.1 Institute of Engineers (India)
16.2 License of Structural Engineers from MCGM / Municipal Authorities
16.3 Practicing Engineers, Architects & Town Planner Association
16.4 Indian Society of Structural Engineer (ISSE)
16.5 Institute of Valuer
16.6 Mumbai Building Repair & Reconstruction Board (MHADA UNIT)
16.7 License of Surveyor
16.8 License of Site Supervisor
16.9 American Society of Civil Engineers (ASCE)
16.10 Institute for Steel Development & Growth
16.11 Indian Society for Technical Education (ISTE)
16.12 Registered Member of the council Architect New Delhi
16.13 Associated member of the Indian Institute of Architects
16.14 ISO Certificate (specify the number )
16.15 IT PAN Card, Service Tax , VAT etc.
16.16 Certificate of Incorporation issued by ROC / Registrar of Firms.
16.17 Memorandum of Association & Articles of Association of a company /
Partnership deed duly registered with ROC /ROF.
16.18 Whether empanelled by MHADA? If yes, Letter to that effect.
16.19 Any other relevant documents in respect of business.