The Mumbai Building Repairs and Redevelopment Board (MBRRB), an undertaking of Maharashtra Housing and Area Development Authority (MHADA), claims it is seeing gradual improvement in willingness from builders in carrying out redevelopment of old dilapidated buildings including cessed properties. Following the cancellation of old government resolution (GR), reportedly the MBRRB is reporting some improvement in number of files obtained from builders.
The then housing minister Radhakrishna Vikhe Patil had issued the GR which was mandating developers to have turnover of Rs 10-50 crore in three years. Besides, should have built 500 houses only then the developer will be eligible for carrying out the redevelopment. However, this had largely affected the interest of small builders.
A senior official from MBRRB who did not wish to be named said, "Now due to prevailing COVID situation the number of proposals the board is receiving is low. However, the cancellation of GR has removed the major obstacle. We are now seeing response from builders who were not keen earlier. In fact, only small builders undertake redevelopment of cess properties and other such old buildings since the profit margin is very low. Also many a time landlord of cess buildings appoint a contractor and in such cases to carry out the redevelopment was an impediment."
The MBRRB in a year receives 100 proposals for redevelopment. However, from September 2019 with the issuance of GR and until the GR was revoked, the board could not receive any redevelopment proposals from builders. Now with relaxation in terms and conditions, the said work is seeing some improvement, asserts the official.