On Friday, 13th September, the state issued a Government Resolution (GR) outlining rules for societies undertaking redevelopment. The GR states that any building over 30 years old can initiate the process of Self Redevelopment.
In a bid to help housing societies carry out self-redevelopment of their old buildings, the state government is offering various incentives and concessions.
Through self-redevelopment, residents come together to undertake the revamp instead of the builder. They appoint a contractor and share the benefits which would have otherwise been cornered by the builder. This positive move from Government of Maharashtra will bring about transparency in the realty sector and will induce confidence among residents as they can plan for their societies, choose the contractors and also get bigger houses than those offered by the builders.
The authorities currently approving the redevelopment of housing societies in the state, same will be the planning authority for the self-development of the cooperative housing societies.
Highlights of the Directives given by State Government are Follows:
There would be a one-window system for all permissions.
Faster and time-bound approvals as Plans will be approved within six months from date of submission.
10% Extra floor space index (FSI).
Plots abutting road-width less than 9 mtrs will be allowed 0.4 FSI at free of Cost.
Societies will get concessions in purchase of TDR (50% concession).
Societies will also get concessions on premiums payable;
Societies will get Instalments in premiums payable to Municipal Corporation and don't have to pay all premiums upfront.
Rebates on loans of 4%;
Penalising erring contractors who delay construction work;
Reduction in Land Under Construction Cost;
Reduction in Goods & Service Tax (GST)
Rs. 1000/- Stamp Duty only for Permanent Alternate Accommodation Agreement (PAAA)
To protect residents from delays, the government has also mandated that the project needs to be completed within three years after approvals are issued.
There will be a tri-partite agreement between the Housing Society, the Banks Disbursing loans, and Contractor.
The state has also announced a vigilance committee to ensure quality construction and monitor its the time frame.
There will be a grievance redress cell to protect the residents and a mechanism to remove erring contractors and blacklist their firms.
" THIS WILL BE GREAT BOON "ONLY" TO THE SOCIETIES OPTING FOR SELF REDEVELOPMENT..!!! "
IF ALL POINTS ARE ACCEPTED BY LOCAL AUTHORITIES, AT-LEAST 20% PRICES CAN REDUCE TO BOOST THE REAL ESTATE INDUSTRY..!!!