On 13th September 2019, the Maharashtra State issued a Government Resolution (GR) outlining rules for societies undertaking self-redevelopment. The GR states that any building over 30 years old can initiate the process of self-redevelopment.
Becoming popular in a short span of time, a lot of society members are getting attracted towards self-redevelopment as it provides more benefits than conventional redevelopment to existing occupants. However self-redevelopment comes with certain degree of risk.
In a bid to help housing societies carry out self-redevelopment of their old buildings, the Maharashtra state government is offering various incentives and concessions.
List of incentives being offered by government to promote Self-Redevelopment, through GR dated 13th September 2019. These incentives are for more than 30-year-old society opting the path of self-redevelopment.
Self-Redevelopment, residents can come together to undertake the redevelopment of building instead of the appointing builder to do the needful. Society appoints a contractor, project management consultant (PMC) and share the benefits (like bigger homes) which would have otherwise been profited by the builder by selling additional sale area. This encouraging move from Government of Maharashtra will bring about simplicity in the redevelopment process and will induce confidence among residents as they can plan for their societies.
The authorities currently approving the redevelopment of housing societies in the state, same will be the planning authority for the self-development of the cooperative housing societies.
- One-window system for all permissions.
- Faster and time-bound approvals as Plans will be approved within 6 months from date of submission.
- 10% Extra floor space index (FSI).
- Rebates on loans of 4%;
- Plots abutting road-width less than 9 meters will be allowed 0.4 FSI at free of Cost.
- Societies will get concessions in purchase of TDR (50% concession).
- Societies will also get concessions on premiums payable;
- Reduction in Goods & Service Tax (GST)
- Societies will get Instalments in premiums payable to Municipal Corporation and don’t have to pay all premiums upfront.
- Penalizing erring contractors who delay construction work;
- Reduction in Land Under Construction Cost;
- Permanent Alternate Accommodation Agreement (PAAA): Rs 1000/- Stamp Duty only under PMAY (Prime Minister Awas Yojana)
- Period for completion of the Self-Redevelopment scheme, should have to complete the entire project within 3 years.
- To protect residents from delays, the government has also mandated that the project needs to be completed within three years after approvals are issued.
- There will be a tri-partite agreement between the Housing Society, the Banks Disbursing loans, and Contractor.
- The state has also announced a vigilance committee to ensure quality construction and monitor it’s the time frame.
- There will be a grievance redressal cell to protect the residents and a mechanism to remove erring contractors and blacklist their firms.
However, detail procedural guidelines are yet to be issued by each of the department based upon the above stated GR.
You can download the copy of GR :