Self Redevelopment GR (13-09-2019) – Highlights
On 13th September 2019, the Maharashtra State issued a Government Resolution (GR) outlining rules for societies undertaking self-redevelopment. The GR states that any building over 30 years old can initiate the process of self-redevelopment.
In a bid to help housing societies carry out self-redevelopment of their old buildings, the Maharashtra state government is offering various incentives and concessions.
Through self-redevelopment, residents can come together to undertake the redevelopment of building instead of the appointing builder to do the needful. Society appoints a contractor, project management consultant (pmc) and share the benefits (like bigger homes) which would have otherwise been profited by the builder by selling additional sale area. This encouraging move from Government of Maharashtra will bring about simplicity in the redevelopment process and will induce confidence among residents as they can plan for their societies.
The authorities currently approving the redevelopment of housing societies in the state, same will be the planning authority for the self-development of the cooperative housing societies.
- There would be a one-window system for all permissions.
- Faster and time-bound approvals as Plans will be approved within six months from date of submission.
- 10% Extra floor space index (FSI).
- Plots abutting road-width less than 9 meters will be allowed 0.4 FSI at free of Cost.
- Societies will get concessions in purchase of TDR (50% concession).
- Societies will also get concessions on premiums payable;
- Societies will get Installments in premiums payable to Municipal Corporation and don’t have to pay all premiums upfront.
- Rebates on loans of 4%;
- Penalizing erring contractors who delay construction work;
- Reduction in Land Under Construction Cost;
- Reduction in Goods & Service Tax (GST)
- 1000/- Stamp Duty only for Permanent Alternate Accommodation Agreement (PAAA)
- To protect residents from delays, the government has also mandated that the project needs to be completed within three years after approvals are issued.
- There will be a tri-partite agreement between the Housing Society, the Banks Disbursing loans, and Contractor.
- The state has also announced a vigilance committee to ensure quality construction and monitor its the time frame.
- There will be a grievance redressal cell to protect the residents and a mechanism to remove erring contractors and blacklist their firms.
You can get this Self-Redevelopment GR through email, by simply filling contact form with your contact details.