India’s most expensive real estate market – Mumbai – has become one of the most densely crowded cities in the world, pushing the real estate to become a scarce resource in the city. The housing demand in the city has reached a new level and the government finds it hard to suffice the needs of all.
One of the ways to match this exhaustive demand is redevelopment of societies. In the last decades, redevelopment has changed the face of Mumbai very significantly.
Traditionally, redevelopment was carried out by the developer of the housing scheme. However, the original homeowners in the society felt that the benefits of the additional floor space index (FSI) accruing to the building, do not pass on to them.
In some cases, developers left the redevelopment project midway leaving the flat owners stranded midway.
To address these concerns, Maharashtra government set up an exert committee on March 08, 2019, to examine the issue and introduce the concept of self-redevelopment.
Later, on September 13, 2019, a Government Resolution (GR) was issued to implement the suggestions of the high-level committee.
What did that do? It gave the housing societies the choice to take charge of the redevelopment.
The Maharashtra Housing and Area Development Authority (MHADA) is the managing expert for this plan. Under this plan, the MHADA is needed to give a solitary window framework, for every one of the fundamental consents needed for self-redevelopment of the lodging society. This will guarantee that the essential authorizations are given faster than it would somehow take.
MHADA is likewise needed to make a board of draftsmen, project the executives’ specialists and workers for hire, to give decisions to the lodging society, to choose the essential experts required for self-redevelopment. For subsidizing reason, the Reserve Bank of India has now permitted social orders to acquire from lodging finance organizations, aside from the Mumbai District Co-Employable Bank. The RBI notice, which came in February 2021, will help the possibilities of the self-redevelopment plot in Mumbai.
When the redevelopment project is carried out by the builder, it is simply termed as redevelopment. It can be initiated either when a housing society members approach the builder and demand for redevelopment of their society or by the builder’s own will. But in either of the cases, there is a mutual agreement between both the parties.
Generally, after a period of 20-25 years, all building reaches up to a level where it becomes necessary to redevelop it. So, in such case, if at least 75% society members sign up to agreement for redevelopment, the society will go on to be redeveloped.
The mutual agreement between the members and the builder clarified the terms of flat allocations and sale of the additionally added flats. The builder’s liability is to give the flats to the members, according to the arrangement and he is allowed to give or sell the extra flats to anybody, including the members, at arranged costs.
In case the redevelopment work is undertaken by the society itself, with the supervision of its members, it is called self-redevelopment.