Mumbai: Government Promotes Self-Redevelopment Projects, Offers Building Relaxations And Tax Incentives

The Maharashtra government has decided to set up a new authority and offer a waiver in stamp duty to encourage the self-redevelopment of cessed and dilapidated buildings.

The government has incentivised redevelopment of old buildings through tax benefits, clearances for self-redevelopment and discounts, aiming to push development in the city further.

In addition, the state’s Deputy Chief Minister, Devendra Fadnavis, who is also the Housing Minister, suggested that banks be appointed as nodal agencies for the implementation of the self-redevelopment initiative for these structures — which was introduced in 2019.

This project aims to help over 16,000 outdated and hazardous properties within the city by enabling housing societies to undertake self-redevelopment activities, eliminating the need for builders.

The process of deemed conveyance, essential for self-redevelopment, has been streamlined by the state government.

For both individual flat owners and housing societies, obtaining a conveyance deed is of utmost importance, as it serves as the sole evidence of ownership for an apartment, excluding the land on which the building is situated.

According to data provided by the state government, out of a total of 115,172 co-operative housing societies, over 60 per cent, which amounts to 71,444 societies, do not possess a conveyance deed, reports Free Press Journal.

A certificate will be issued within a month of the application by the cooperative housing society. Once the one-month period has elapsed, the responsible officer will be obligated to issue the certificate within four working days.

Societies that choose self-redevelopment have been exempted from the obligatory 9-metre requirement for additional Floor Space Index (FSI) on the two sides of the building.

This requirement has been reduced to 6 metres. To expedite the self-redevelopment process, a dedicated cell has been set up to provide approval within three months.

Financing Support Of Self-Redevelopment Projects

During a conference in Goregaon on Sunday, plans were announced to provide interest subsidies for housing societies that opt for self-redevelopment projects.

Chief Minister Eknath Shinde and Deputy Chief Minister Devendra Fadnavis were present at the conference.

The Maharashtra Central Cooperative Bank and Mumbai District Cooperative Bank have been assigned as nodal agencies to aid in financing the projects.

Additionally, a self-redevelopment financial corporation is being considered to provide funding for these endeavours.

The Deputy CM said that to make the projects financially viable, the government will extend interest subsidies to the societies going for self-redevelopment.

“It will help the housing societies and their tenants to get bigger houses at lower cost,” he added.

According to him, the stamp duty adjudication, registration, and registration of the society’s name in property cards will be completed in a timely manner after the deemed conveyance.

Furthermore, the transfer premium has been reduced to Rs 50,000 from Rs 1 lakh.

The idea of paying rent for a year in advance for self-redevelopment — similar to private builders' redevelopments — is also in consideration, as stated by Fadnavis.