In the matter of Redevelopment of any Housing Society, the common practice is that after obtaining Intimation of Disapproval (IOD) from the Municipal Authorities, the Developer gives a notice for a reasonable period of say 45 days to 60 days to the occupants in the existing premises for the reasons that the terms of IOD require that only after the demolition of the existing premises/structures, the Developer would be entitled to apply for and obtain Commencement Certificate (CC). Though, logically, it is disadvantageous and risky to the Developers as well as to the Flat Owners/ Tenants/ Occupants.

IOD is issued under the provisions contained in the Mumbai Municipal Corporation Act 1888. Section 2 (7) of the Maharashtra Regional Town Planning Act 1966 contains definition of the term "Development". According to this definition, the term "Development" includes the demolition of any existing building, structure or erection of such building.

The Provisions of Section 43, 44 and 45 of the said MRTP Act require that no development can commence without obtaining CC. Combined reading of the provisions of the MRTP Act would mean that "Demolition” is also a development or a part of the development process and development process cannot commence without a CC from the concerned authority.

IOD is an essential permission given to the Developer by the Municipal Authorities to redevelop an old building. The Developer however cannot demolish the old building just on the basis of IOD alone.

After the plans for redevelopment are submitted to the Building Proposal Department of BMC, an IOD is issued and under the terms and conditions of the IOD, the Developer is asked to comply with many requirements and obtain various clearances like clearance from Environment Authorities, Tree Authorities and Fire Officer Etc. After these clearances are obtained, the Developer is entitled to obtain a Commencement Certificate (CC). The demolition can commence legally only after obtaining CC.

In such a view of the matter imagine the situation, wherein, the existing building has been demolished on the basis of receipt of IOD and because of non-fulfilment of the conditions like Aviation Clearance, Environmental Clearance, Permission by Tree Authority or any of them not materializing, the project would get halted and the dwellers may become homeless. Early vacating of the existing premises is not advantageous even for a Developer because, amongst other things, the Developer has to start paying rental compensation from the date of vacating the premises.