Self Redevelopment Bounced Back..!!!
In 2017, Mumbai Bank (MDCC Bank) started Loan policy for societies who were willing to go for self redevelopment.
In 2019, then Govt also passed GR to give sops for the societies who opt for self redevelopment which is yet to be implemented.
Last year RBI announced that District Central co-op banks cannot grant loan to the societies and this become a huge roadblock for all societies who opted for self redevelopment.
Meanwhile RBI announced that other financial institutions can grant loan to societies who opt for redevelopment but till date no other financial institution policy is as liberal as Mumbai Bank loan policy. Hence no societies was yet to start the self redevelopment project without Mumbai Bank Loan policy.
Self Redevelopment has many benefits such as liberty in choice and freedom from developers.
Due to RBI restrictions, many societies who opted for self redevelopment started to look for developers. But few societies such as Orion CHSL at Charkop didn’t lost hope and stuck to their self redevelopment decision.
With the help of their PMC, Toughcons Nirman Pvt Ltd., they decided to do self redevelopment through Development Management Model
In Development Management Model, society has Liberty to plan on its own through its professional team. In Developer Model, they don’t have liberty to appoint their own professional team of Designing Architects, Liaison Architect, Structural Consultant, etc. Also unlike Developer Model, they don’t have to enter into Development Agreement or give Power of Attorney and irrevocable consents to developer.
In Development Management (DM)Model, Society also has liberty and freedom to allot their flats as per their wish, finalize all internal and external amenities as per their budget with help of their appointed PMC Professional Team.
In DM model, instead of Mumbai Bank funding the loan, DM arranges loan for the project. The role of Development Manager is to arrange uninterrupted funds for the project, Construction Management, Site Management, Sales Management, Share their Brand & construction knowledge and in turn charges fees for it. Currently Development Managers are either Renowned Contractors or Developer firm who have a decent track record. Hence the project is professionally managed by society PMC & DM. There are few Developers who have good track record interested in minimum margin but fixed margin. They are interested to execute the project coz in self redevelopment, all members are ready, society is ready with plans, amenities list, allotment of plans.
Orion CHS has asked for bid from Development Managers who were interested in the project and they got offers from 5 different Development Managers out of them with help of PMC, Toughcons Nirman Pvt Ltd, they shortlisted 3 and out of them selected one. The process of selection took 3 months and finalized the DM on 2nd August 2021.
Architect Uday Kanadia has planned ground plus 5 podiums + 1 floor for amenities in 30 storied building. Society has obtained offer letter from MHADA on 11th August 2021. Now after paying first instalment to MHADA, they will move for IOA and plan to vacate their premises by November End. There are 32 units of existing members who are getting 57.5% more additional area. New flats will be spacious 2 bhk of 670 Sq.ft and 3bhk of 1045 sq.ft. Society’s 32 members will distribute the profits at the end of the project.
Orion CHS secretary Mr. Sashi Menon has shown dream to all its 32 members in 2017 but their dreams shattered after RBI policy but now have successfully bounced back and their dreams will realize
in near future.