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How much extra area will each member get?


Depending on the project feasibility, the extra area will be offered to each member. Thus additional areas offered may differ from project to project.


What will be the corpus amount and how will it be distributed?

In self-redevelopment, the project gains profit which is distributed equally amongst all the society members.


When does the Bank sanction & disburse the loan?

Mumbai bank will sanction and disburse the loan on 1 FSI IOD/IOA.


How much loan is given by the bank and how much is the interest rate?

The bank sanctions up to 95% loan of the project cost at 12.5% simple interest per Annum.


What is included in the project cost?

The project cost is the total cost required to complete the self-redevelopment project successfully. It shall include construction cost, professional fees, TDR purchase cost at MCGM/MHADA, TDR cost from open market, MCGM/MHADA Premiums payable for development as per the Development Control Regulations, Cost to get Building Approvals, Rent to Members, Shifting Charges to Members, Interest Cost, Cost of Site Management and other miscellaneous costs related to the project.


How much is the processing fees?

1% is the processing fees.


Is there any pre-payment charges, if the society repays the loan before its tenure?

No. There are no prepayment charges.


If the society does not avail or utilise the entire sanctioned loan amount, then does the bank charge any commitment charges for the unused limit?

No. Bank does not charge any commitment charges..


No bank gives loans without collateral security, so what collateral security society has to give?

Bank gives the loan on the mortgage of the society’s land and lien on proposed sale flats. Society or its members do not have to give any collateral security other than those mentioned above.


How will the society repay the loan?

Society will repay the loan from the sale of additional flats in the project.


Do the flats of any society member gets mortgaged?

There will be no mortgage on the flats of any existing members.


Does individual member have to give personal guarantee?

There will be no personal guarantee of any individual member.


Will society managing committee be held responsible for any decision?

Society managing committee will not be held responsible as they will have to work only as per the resolutions passed by the General Body.


What kind of services does Toughcons offer for Self-Redevelopment?

Toughcons is a group of professionals. It undertakes a turnkey project and provides professional services from start to end required for the redevelopment project such as architect, engineers, approvals, legal, Chartered accountant, PMC for society management, liaison for funding and even sales & marketing.


That means society does not have to do any work and all the profit of the project will go to society?

Yes, Toughcons will take all their redevelopment work’s responsibility and the profits of the project shall remain with the society only.


Who will pay the rent/shifting charges?

It will be covered in the project costs. Bank will transfer rent to their respective account opened in Mumbai Bank


Who will get the approvals from MHADA/ MCGM and will bank pay for the approval costs?

It will be covered in the project costs. Bank will transfer the rent to their respective account opened in Mumbai Bank


Who will design the plans for the society’s proposed building?

Toughcons have a team of designing architects headed by our director, Uday Kanadia who is a gold medalist and designed more than 40 redevelopment projects.


Who will manage account writing and taxation?

Our in-house Chartered Accountant & its team will manage account writing and taxation.


Who will guide us on the legal and documentation part?

Toughcons has an in-house team of advocates to guide in all aspects from conveyance to co-operative matters to all legal documents related to redevelopment.


Our society does not have conveyance, can Toughcons assists in obtaining Unilateral Deemed Conveyance?

Toughcons in-house team will obtain the unilateral deemed conveyance in favor of the society.


What will happen to the project in case of delays?

Delays happen due to financial or approval problems, as in self-redevelopment all approvals will be in place before vacating flats and the loan is approved by the bank, there will be no cause for delays.


How quality will be monitored?

Toughcons’ in-house team of site engineers & Architects will ensure quality work from the contractors and in casework is not up to the standards their contracts can be terminated.


Will the project be insured?

The project will have full construction insurance.


What will be the loan period?
The loan period will be 7 years for a loan up to 50 crs and 10 years for a loan of more than 50 crs.


How much is the moratorium period?

The moratorium period is of 2 yrs for a loan up to 50Cr and 3 yrs for Loan more than 50Cr.


Who will be responsible for the sale of flats?
The society with the help of the sales & marketing team will make the sale of flats. Toughcons have an in-house sales team.


What will happen if society fails to make any sales?

Firstly, this will not happen as a society will have fewer flats to sell. Secondly, we have a sales and marketing team that will get the research of the market about the demand and supply in neighborhood areas. In the worst scenario, the Bank will take over the new inventory.


How long will it take to complete the project?
This will depend on the type of project.


How project payments will be released?

Payments will be released as per requirement of the project and approval from the MMDC Bank, nodal agency and PMC.


If members would like to buy extra area, what will be the cost of it?
Existing members can purchase extra area at project cost and nominal profit.


How much each member can buy extra area?

This can be decided as per the general body.


Will we get any assistance for appointing the Contractor?
The society will get the necessary help from Toughcons to identify and appoint a qualified contractor.


What is a benefit to society to get all professionals under one roof?

Society will have to keep one point contact. If society appoints agency with all professionals under one roof then the responsibility of the work is only on one company.


Who will design our project as a Structural Engineer?
Our in-house Director, Jayant Inamdar & their independent firm, Strudcom Consultants who have done the structural design of several landmarks such as INFOSYS head office, MMRDA skywalks, etc. He will do the complete structural designing and engineering for the project.


Do we have to pay stamp duty on the Development agreement?

There is no development agreement as society members are the owner and no transfer of rights takes places hence, stamp duty is not required to be paid.


Can existing members get flats on Upper floors?
Yes, as the society is a part of design decisions, they can take upper floors and keep sale area on lower floors.


Our society has already entered into a development agreement with X developer, now the developer is not ready to deliver, can we do self -redevelopment?

Yes, the project cost will be considered for the remaining part of the project and accordingly, the loan will be sanctioned to complete the whole project. The existing development agreement should be terminated with no litigation and society should pass a resolution for self-redevelopment with 100% consent.


Can we terminate our present Development Agreement for self -redevelopment?


What if we sell our flats before project completion and we do not need to take full Loan from Bank?

This will decrease the expenditure thereby reducing the loan cost and increasing profit for the society members.


Is Toughcons an international company having a sound balance sheet?
Toughcons has been recently formed by a group of professionals to provide all services under one roof. Although our company was formed in 2012, it is relatively new and we do not have any substantial turnover in our balance sheet.


Has Toughcons worked with renowned construction companies such as L&T, Samsung, Piramal, etc? Will they work in our small size redevelopment project?

Our director, Jayant Inamdar has been a consultant to renowned construction companies including L&T. But such big construction companies do not take smaller redevelopment projects.


Then in such cases how we will get good contractors?
There are many good contractors who are doing redevelopment projects of a renowned developer such as Hiranandani, Raheja, Dosti, Ekta, Bhoomi, etc. who can do quality work in the scheduled period.


Will international architects be helpful in our small-sized redevelopment project? Do they charge reasonable?

As per the current scenario, reducing the premium cost is the most important factor of redevelopment, which Mumbai based architect who has worked for developers can understand better the needs of the common man than the international fame architects firm. Secondly, their fees will not be feasible for smaller redevelopment projects.


Will international PMC be helpful in our small-sized redevelopment project? Do they understand Mumbai's redevelopment projects?
As society is doing Self-Redevelopment they have to think like a developer now. International brand PMC, whose balance sheet may be huge due to international turnover but for common man, the question will be that, do they have experience in redevelopment and have they worked in a smaller size redevelopment project in Mumbai.
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