Free Press Journal

Mumbai Bank offers loan up to Rs 50 crore for self-redevelopment of buildings


Mumbai: Mumbai Bank has given a presentation to MHADA on Tuesday and said that they are willing to pay Rs 50 crore as loan amount to buildings for their self-redevelopment.

There are nearly 30,000 societies across Mumbai, including cessed buildings located in South Mumbai, which need a No Objection Certificate (NOC) from the MHADA to go ahead with redevelopment. The bank has said that it will directly pay the authority the money required for the permissions and will sanction the loan from the start of the project. This will eliminate the developer, to an extent, and the dependency of the societies on them for redevelopment, reported DNA.

As of now, there are nearly 14,000 cessed buildings in the south of Mumbai, which are not only dangerous to live, but also need urgent redevelopment as there’s a lack of transit accommodation within city limits. Many developers have got into redevelopment of these buildings but projects are stuck for various reasons, one of them being that tenants of these building do not want to shift to far away transit camps, thus not vacating the buildings. Apart from this, real estate market is also not in good health and tenants are adamant about not leaving their place.

There are questions marks over the feasibility of the plan and experts have quite rightly raised the question of societies generating the initial finance required to get permissions, hire contractors and even architects. Under self-redevelopment plan, the committee of the housing societies appoints a contractor to carry out construction and pays them. They get a larger space and a larger corpus amount too.

Milind Mahiskar, CEO and VP, MHADA said, “The idea is good and MHADA will fully support it.” MHADA will be the authority that will be issuing the no objection certificate to cessed buildings. A bank official said, “This will also be of benefit to buildings which are under CRZ and under the funnel zone of the airport.