Self Redevelopment in Mumbai

With the growing population and economic development of cities like Mumbai, the demand for houses is constantly increasing. Although the city boasts various buildings to accommodate the demand for homes, multiple buildings in the town have outlived their lives. That leads to the demand for redevelopment projects in Mumbai.

Traditionally, the redevelopment projects were taken care of by builders, which led to some concerns for the residents. However, with the Maharashtra Government’s self-redevelopment scheme, housing societies can also undertake the self redevelopment of housing society and prevent the interest of the existing flat owners.

Let’s explore the process of self redevelopment in Mumbai. Read on to find all the necessary steps.

Eligibility Criteria for Self-Redevelopment in Mumbai

1. Registered Housing Society

• The society must be registered under the Maharashtra Cooperative Societies Act, 1960.

2. Clear Ownership & Title

• The society must own the land or have a leasehold agreement.
• No major legal disputes on land ownership.

3. Building Age & Condition

• Generally, buildings over 30 years old or those marked as dilapidated/dangerous by the BMC are eligible.
• Structural audit reports help determine eligibility.

4. Consent from Members

• At least 51% of society members must approve the self-redevelopment proposal in a General Body Meeting.

5. No Prior Redevelopment Agreement

• If the society has already signed an agreement with a builder, it may not be eligible unless the contract is terminated legally.

6. Financial Feasibility & Loan Eligibility

• The society must be financially capable or secure funding from banks like MHADA, Mumbai District Cooperative Bank, or private lenders offering loans for self-redevelopment.

7. Approval from Authorities

• Necessary approvals from BMC, MHADA (if applicable), and other municipal bodies for Floor Space Index (FSI) benefits and building permissions.

Process of self redevelopment in Mumbai

Self-redevelopment in Mumbai is an intricate process that requires detailed planning and execution. Below is the step-by-step process:

Step 1: Obtain Permission from Society Members

The first step is obtaining consent from the residents or members of the society. A Special General Body Meeting with at least 51% of apartment owners in agreement with the reconstruction project is a mandate. These members must sign an acknowledgement, which is essential for future use.

Step 2: Get the Feasibility Study Done

After securing the required consensus, the society needs to engage an architect who will develop a feasibility report. This report should have all the crucial details and the total cost involved in the project. The report will also explore the possibility of additional development components for sale.

Step 3: Document Verification

Ensure that the society holds a conveyance deed in its name. In cases where state authorities or the MHADA owns the land, obtain a no-objection certificate from the owner. Collect the following essential documents:

- Chain and Triangle Survey (CTS) plan

- 7/12 extract

- Development plan

- Registration certificate

- List of committee members

- List of approved amenities

- Setback area details

- Plot area measurements

- Approved redevelopment plans

- Occupancy certificate

- Audited financial statements for the past three years

- Details of society members, including their unit sizes as per the actual plan

Step 4: Hire Experts

Hire a team of experts, including a chartered accountant and a legal advisor. These professionals will assist in managing accounts, filing income tax and GST returns, ensuring compliance, and registering the project under RERA. Also, hire a contractor responsible for the construction phase and an architect to help finalise the budget.

Step 5: Get Approvals

Start the approval process by leveraging the Maharashtra government's single-window clearance system for self-redevelopment projects. Society would need approximately 55-60 clearances, including NOCs from authorities like coastal regulation zones, traffic, fire, defence, aviation, and others.

Step 6: Secure Funding

Get the necessary funding for the redevelopment project. The society can apply for a loan from a housing finance company or bank. Submit the required documents and agreements to the financial body. Ensure that there are no pending dues or outstanding maintenance charges from the residents.

Step 7: Temporary Arrangements for Residents

Once the society receives the funds, construction work can commence. However, temporary arrangements for residents' accommodation during the project's duration are essential. Once the architect obtains building plan sanction from the municipal corporation, the society must pay the premium fee.

The final word

The process of self-redevelopment in Mumbai is a promising avenue for housing societies. Empowering residents to take charge of redeveloping their flats, the scheme addresses the need for modernisation and also safeguards the interests of existing flat owners.