Consumer Connect: ‘Self-Redevelopment Model Offers Benefits To Societies,’ Says Expert

Consumer Connect: ‘Self-Redevelopment Model Offers Benefits To Societies,’ Says Expert

The questions are answered by Adv. Shirish V. Deshpande, Chairman – Mumbai Grahak Panchayat.

FPJ News ServiceUpdated: Monday, November 20, 2023, 03:33 PM IST
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Consumer Connect | FPJ

Our society in Kandivli, with 60 members, is planning to go for re-development. Our building, with ground plus three floors, is 35 years old. However, our members are sharply divided over the issue of selfredevelopment versus re-development through a builder. What are the risks and benefits under self-redevelopment?

Rajendra Rane, Kandivli

The question you have asked is one that is currently haunting many housing societies.

Let’s first see the benefits of the self-redevelopment model. The Maharashtra government has issued GR dated September 13, 2019, in which a lot of concessions / benefits are promised for housing societies that undertake self-redevelopment. They are: Single window system for approvals, time-bound approvals within six months, 10% FSI, 50% concession in TDR rates and suitable concessions in premium rates, interest subsidy up to 4% for project loans, instalments for payment of premiums to MCGM / MHADA, fixed stamp duty of Rs1,000 for existing flat owners, exemption from land under construction (LUC) tax if project is completed in three years, threeyear deadline for completion of project, concessions in open space deficiency and GST, etc.

Of course, the concessions promised in this GR are yet to be implemented. But even if half of these concessions actually emerge in the near future, commercially they will far outweigh the risks involved in self development.

The government on its part should mercilessly come down on corruption involved at every stage of approval. If implemented honestly, self-redevelopment can be a game changer.

Is it true that to go for self-development 100 % consent of all members of the society is necessary?

Shri Rane

The redevelopment process is governed by the directions issued by the state government vide GR dated July 4, 2019. In this GR it is categorically stated that these directions shall apply to all kinds of redevelopment including self-redevelopment, cluster redevelopment etc. The quorum for the general body to decide for redevelopment shall be two-thirds of the total membership. Once the quorum is present then the preliminary decision as to whether society should go for re-development or not shall be approved by a simple majority of the members present, which shall not be less than 51 % of the total membership strength.

The same procedure applies for the selection of a developer or appointing a contractor in case of self-redevelopment. Such a decision taken by the majority shall be binding on all members. Thus, whether it is self-redevelopment or redevelopment through a developer, 100% consent is not required. Just imagine for a moment that if 100% consent is at all required then even one single member can hold the entire society to ransom and no redevelopment would be possible.

Adv Shirish V Deshpande,

Chairman, Mumbai Grahak Panchayat

Email: shirish50@yahoo.com

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