Why Mumbai needs redevelopment
Why Mumbai needs self redevelopment
Typically most societies prefer to redevelop their buildings through Real Estate Developers as they are not aware of all the requirements that come along with that. Redevelopment through Real Estate Developers is a tug of war where both the parties strive to get maximum benefits for themselves. This tussle many a times leads to situations and consequences which are not in favor of the society members. When it comes to redevelopment through Real Estate Developers, there have been many issues raised in the past such as –
- mismanagement of the entire project
- allegations of corrupt practices and underhand dealings
- developers changing building plans for their vested interests without informing the society members
- developers trying to usurp and sell common spaces
- mismanagement of funds – using the funds in multiple projects leading to projects going on hold
As per media reports, there are more than 5800 projects in Mumbai which are stuck in redevelopment today, affecting more than 1,25,000 families. The reasons for all these projects getting stuck range from lack of funds to delays in permissions to miscalculations in carpet area allotment. While the reasons are aplenty, most of the times, they are directly related to the developer handling the redevelopment project.
For Society members, taking up self redevelopment of their housing society keeps the members safe from any problems arising from the builder and the the society is assured of more benefits and profit from the project. This is possible as the overall control of the project is always in the hands of the society.
To make the self redevelopment process in Mumbai easier for the housing societies, there are Project Management Consultants who provide professional management for self redevelopment projects in Mumbai for a service fee but unlike the standard builder redevelopment process, they do not take any rights on the project or any other stake in the project.
Also, the authorities have started taking steps to encourage self redevelopment in Mumbai by setting up the Self Redevelopment Scheme Mumbai with a dedicated single window system being set up by MHADA to enable fast approvals for self redevelopment projects.
Also, the Mumbai District Central Co-operative Bank Ltd (MDCC Bank/ Mumbai Bank) has been authorized to fund self redevelopment projects in Mumbai and it provides finance up to 95% of the project cost.
If executed well, self redevelopment projects in Mumbai have the potential to radically change the pace of development in Mumbai and will help solve the city’s massive housing shortage in the long run.