Things you need to know about Maharashtra self-redevelopment scheme

Propertypistol

Maharashtra, on September 13, 2019, issued a Government Resolution (GR), which provides several concessions for self-redevelopment of housing societies.

You all are aware that in cities like Mumbai, land if very scarce, then too the demand for housing is growing continuously. Moreover, some of the buildings in Mumbai and in other cities have outlived their useful life and pose a risk to the lives of the residents. To overcome these problems, the Maharashtra government is increasing demand for housing, with the added objective of replacing the old buildings by promoting and regulating the redevelopment of existing properties.

The redevelopment of old buildings has considerably changed the face of Mumbai, in the last 25 years.

Eligibility criteria for self-redevelopment

Only registered cooperative housing societies of Maharashtra are eligible to avail of the benefits offered under this Government Resolution (GR). This advantage is available only for buildings which have completed 30 years, doesn’t matter who owns the property. If the housing society owns multiple buildings of different ages, the society opts for self-redevelopment only for the building with 30.

Single-window system for all approvals

Redevelopment of any residential project usually can be time-consuming process as needs approval from many departments and government authorities. Some of the approvals are interlinked. To avoid delays, arising as a result of the various departments handling the applications, the GR introduced a single-window system for making applications and granting of approvals. This will help reduce the time and cost for the redevelopment.

Empanelment and appointment of contractors

The housing society has to appoint a contractor to perform redevelopment procedure, from panel of contractors maintained by the approving authority. For empanelment, the contractors have to submit balance sheets for the last three years. This requirement will make sure that no contractors get to perform redevelopment under this scheme. The contractor can be removed, if the committee constituted for monitoring the progress of the project reports undue delay by the contractor, in execution of the project. In such a case, the contractor can also be boycotted, to make him disqualified for any other project.

Timely manner approvals and its execution

To obtain on-time approvals by officials, the Government Resolution specifies that approvals for applications for self-redevelopment must be granted within 6 months from the date of submission of the application. Furthermore, to qualify for the benefits available under the GR and for the faster execution, the redevelopment of the building has to be completed within 3 years from the date of the approval.

From the above, you must have got to know about self-redevelopment scheme. If the redevelopment is undertaken by the housing society, the society shall be entitled to an extra FSI of 10%, over and above what it is entitled to under the development regulations of the area.

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.

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