The government had come up with Government Resolution (GR) that caters to only self-redevelopment. The government has doled out a lot of concessions for registered housing societies that will opt for self-redevelopment.

Eleven months have passed and yet the Self Redevelopment GR issued on 13th September 2019 has not been implemented by the local authorities. Redevelopment is must for the old buildings in Mumbai which are old, dilapidated and dangerous to live. On other side the costs to redevelop the buildings has gone up so much high that most of the projects are almost not viable. If this GR is implemented the costings are likely to go 20% down. With such reduction in price, houses in Mumbai will be affordable to home-buyers.

Post Covid-19, the economy has taken a hit and hence many home buyers have to readjust their budget to buy new homes. Hence this Self Redevelopment GR issued on 13th Sept 2019 will be boon to the societies opting for self redevelopment and for the home buyers who cannot afford to buy new home in Mumbai.

In order to ensure that the flat owners get the benefits of increased FSI and to let them have their say in the redevelopment of the building, the cabinet of the government of Maharashtra, set up an expert committee on March 8, 2019, to examine the issue and give recommendations for self-redevelopment of buildings by the housing societies in the state of Maharashtra. A Government Resolution (GR) dated September 13, 2019, was issued, to implement the suggestions of the high-level committee.

The suggestions made by the committee were brought into effect by passing a Government Resolution (GR) on 13th September 2019 for registered co-operative housing society whose buildings are 30 years old or more.

Some of the major benefits are as follows:

1. Single-window system for making applications and granting of approvals.

2. Approval for the application of self redevelopment needs to be given within 6 months of submission.

3. The redevelopment of the project has to be completed within 3 years from the time the project is approved.

4. The housing society opting for self redevelopment shall get additional 10% FSI over and above the standard FSI as per the Development Control Rules (DCR) standard rules.

5. Also, the society will get 50% concession on premium required to be paid to BMC for buying TDR.

6. Relaxation in premiums such as open space deficiency, staircase premium, etc.

7. Premium installment facilities without interest.

8. Society shall get an interest subsidy of up to 4% for loans availed for the self redevelopment project.

9. Self redevelopment project to be exempted from the Land Under Construction Assessment (LUC) Tax.

10. Relaxation on GST

11. The loan agreement shall be made a tri-partite agreement between the Lender (bank), the the contractor and the housing society.

12. The stamp duty on additional area for existing flat owners under the self redevelopment project shall be fixed at Rs. 1,000.

and many more...

 

WHY THIS GR SHOULD BE IMPLEMENTED ON PRIORITY:

This self redevelopment GR is looked forward by many societies who wants to opt for self redevelopment.

- This GR will revive the real estate industry by bringing the confidence of the common people.

- Many projects which are nonviable and cannot be redeveloped will get ray of hope.

- Many dangerous buildings are demolished by MCGM, but they cannot proceed for redevelopment due to heavy premiums.

- Society members will get a bigger and better home in new building.

- New homes in self redeveloped societies will have affordability and interest the first time home buyers.

- It will revive the Mumbai real estate sector which is paralyzed now.

Hence Toughcons SwaNirman  appeals to all societies' members to sign this petition. Toughcons SwaNirman will push forward the signed petitions to the Government to implement GR at the earliest.

For any information please feel free to write on swanirman@toughcons.co.in or call Nayan Dedhia on 9987539649.

www.societyselfredevelopment.com