The government of Maharashtra, to support self redevelopment in Mumbai had launched the Self Redevelopment Scheme in January 2018. Under this scheme managed by Maharashtra Housing and Area Development Authority (MHADA), a single window system has been set up to expedite clearances and permissions required for self redevelopment projects in Mumbai.
Also, a panel comprising of project management consultants for self redevelopment, architects, contractors is being set up to serve as a pool of options to choose from for societies opting for self redevelopment in Mumbai.
For helping the socities in funding, the Mumbai District Central Co-operative Bank Ltd (commonly known as the MDCC Bank or MDCCB) has been authorized to provide finance to self redevelopment projecs in Mumbai.
To further support the societies opting for self redevelopment in Mumbai, the government of Maharashtra formed a committee comprising of people from the Revenue and Urban Development departments. This committee was required to study the current state of self redevelopment and recommend benefits that could be awared to such projects.
The suggestions made by the committee were brought into effect by passing a Government Resolution (GR) on 13th September 2019.
Mentioned below is the summary of concessions suggested by the committee:
- The housing society opting for self redevelopment shall get additional 10% FSI over and above the standard FSI as per the Development Control Rules (DCR) standard rules
- Also, the society will get 50% concession on premium required to be paid to BMC for buying TDRs
- For projects on roads less than 9 metres, FSI to be increased from 0.2 to 0.4 metres
- Society shall get an interest subsidy of up to 4% for construction loans availed for the self redevelopment project. The loan agreement here is a tri-partite agreement between the lender (bank), the the contractor and the housing society, where lender gets to appoint one member in the committee, while the other 2 members are appointed by the society.
- The stamp duty on additional area for existing flat owners under the self redevelopment project shall be fixed at Rs. 1,000. For the additional flats made available for purchase in the open market, stamp duty shall apply as per the stamp duty reckoner rates.
- To enable a housing society to complete the self redevelopment project in stipulated time, approval for the application of self redevelopment needs to be given within 6 months of submission.
- Also, for a self redevelopment project to be discounted from the Land Under Construction Assessment (LUC) Tax, the redevelopment of the project has to be completed within 3 years from the time the project is approved.
Currently, a self redevelopment project in Mumbai is required to register under MahaRERA (Maharashtra Real Estate Regulatory Authority) if the project has any sale component in the project over and above the allotted flats where the society has to be listed as the promoter.