To accelerate housing society self-redevelopment in Mumbai, the Maharashtra government has implemented measures which will simplify and speed up the process. The initiative comes as a boon for thousands of housing societies in the region.
Fast Processing and Streamlined Approvals
The state government has directed its officers to process self-redevelopment applications within a three-month timeframe from the date of application. It will ensure that all necessary permissions are granted quickly. This will also remove bureaucratic delays. The government has tasked district zonal officers with clearing these proposals.
Additionally, central district cooperative banks from each district have been designated as the nodal organisations for financing. For the Mumbai region, the Mumbai Central District Cooperative Bank will provide financial services.
Fee Reductions and Waivers
To ease the financial burden on housing society members, the government has also waived registration and stamp duty payments for redevelopment proposals. Instead, all members involved in rehabilitation will now pay INR 100 in stamp duty, along with an INR 1,000 registration charge.
Members of the permanent alternative accommodation agreement (PAAA) who did not sign the redevelopment agreement were previously required to pay stamp duty based on the cost of the construction.
Earlier, people who chose not to join the PAAA would be charged stamp duty based on the cost of building, which was typically roughly INR 108 per square foot. Similarly, their registration costs would be about INR 30 per square foot.
Quick Ownership Process
A recent government regulation (GR) has also expedited the process of obtaining ownership of the property. Housing societies that pass a self-redevelopment resolution with a majority vote and apply for presumed ownership will now receive it within a month. This is a significant improvement from the previous six-month waiting period.
Builder Retaining Society Lands
Builders have historically retained ownership of housing society lands even after selling all the flats for decades. They do this by renting terraces to advertising and cell tower companies. They also sell or exploit parking spaces, transferable development rights (TDRs), and floor space indices (FSIs) to generate additional revenue.
Housing Societies in MMR
The Mumbai metropolitan region, comprising Mumbai, Thane, Palghar, and Raigad, houses between 7500 and 8,000 housing societies. These societies are facing issues related to presumed ownership and builder control over land.
According to reports, nearly 10,000 societies in Mumbai are seeking rehabilitation. Some of the structures are even older than 30 years. An additional 10,000 societies in the metropolitan region outside Mumbai are also interested in reconstruction. They are from areas like Thane, Kalyan-Dombivali, Navi Mumbai, Raigad, Ulhasnagar, Bhiwandi, and other municipal corporations.
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