Mumbai: So far, loan proposals from 23 buildings in the city have received in-principle approval from the Mumbai Co-operative Bank to carry out self-redevelopment in the past one year. Of these, five buildings have already procured the loan and embarked on redevelopment.
According to Abhishek Ghosalkar, director of the Mumbai District Central Cooperative Bank Limited, since the development plan (DP) 2034 had been approved by the state government last year and there were amendments to the Development Control Regulations (DCR), developers are still in state of confusion.
Moreover, the establishment of the Real Estate Regulatory Authority (RERA) and Supreme Court staying new construction projects in the city over the dumping ground issue has pushed the real estate sector to the brink in the past four years. “The only construction in evidence is in those projects which had received prior approval.
However, now the sector is picking up pace and in the past one year, many proposals have received our in-principle approval. Our bank will give loans worth Rs 1,140 crore for 23 self-redevelopment projects,” Ghosalkar said. Interestingly, this is the only co-operative society bank that can provide funding to such buildings interested in self-redevelopment.
The bank currently has Rs 4,000 crore in deposits and this money is utilised for to fund those housing societies which want to undertake self redevelopment.
“Before the introduction of this scheme, the bank deposits were used to provide loans for repair work. For instance, if a building requires funds to carry out elevator repairs, or instal solar roofs, they could avail of loans.
Money was also given to fishermen for purchasing boats and so on. Loans in rural areas are usually for farming, while in the city, they are disbursed for building repairs and fishing activity. Now, with demands for loans to carry out self-redevelopment, the bank can utilise the deposits more efficiently,” Ghosalkar said.
