The complete guide for self-redevelopment in Maharashtra
Self-redevelopment, a popular idea in Maharashtra, is a process in which people, rather than the builder, are responsible for the upkeep of the community.
The procedure gives you more control over the project and reduces the danger of delays and money misappropriation. 99acres highlights the key elements of self-restoration and provides step-by-step guidance for carrying it out following Maharashtra’s new Development Control Regulations (DCR). Many housing societies in Maharashtra have been forced to resort to self-redevelopment due to delayed project deliveries and a lack of confidence among developers. Around 16,000 decaying co-operative housing societies exist in Mumbai alone, with over 750 opting for self-redevelopment. While the self-revamping approach ensures time-bound, cost-controlled, and predictable results as society members take up project restoration responsibilities, there may be certain legal and technological hurdles. As a result, here is a comprehensive guide on self-development in Maharashtra.
Step 1: Obtain society’s acceptance
The first stage is to obtain residents’/members’ approval for society’s self-development. For this, societies must call a Special General Body Meeting and send notices to all members as well as the local registrar, who will send a representative to lead the meeting.
Step 2: Obtain a feasibility study
The existing building plan consumed Floor Space Index (FSI), the carpet area of existing units, amended TDR, fungible FSI, current development laws, and cost breakdown for project implementation are all included in a structural analysis or feasibility report. The study is organized into three sections: technical feasibility, financial feasibility, and advantages from the idea, which include the prospect of future development and sale.
Step 3: Go over all of your key paperwork.
The conveyance deed must be in the name of the group. A No-Objection Certificate (NOC) from the owner is required if the land to be redeveloped belongs to the Maharashtra Housing and Development Entity (MHADA), the Collector, or any other authority.
Step 4: Assemble a group of specialists.
Having a team of professionals, such as a chartered accountant, legal counsel, and architect saves time and reduces the risk of making a mistake. While a chartered accountant can aid with accounting, income tax, and the Goods and Services Tax (GST), a legal counsel can help with RERA and other legal requirements. Recruiting an expert contractor is also necessary for society’s rehabilitation.
Step 5: Obtain the necessary approvals
Obtaining permissions used to be a difficult undertaking; now, the Maharashtra government has decided to provide single-window clearance for self-redevelopment projects. Coastal Regulation Zone (CRZ) Clearance, Environment Clearance, and NOCs from traffic, fire, defense, railroads, and aviation ministries are among the 55-60 clearances necessary for self-redevelopment projects.
Step 6: Make financial arrangements
To get a loan, the bank will need the names and addresses of all of the society’s members. These include the company address, the native place address, the Aadhaar card, and the PAN card. Copies of Income Tax Returns (ITRs) and payslips are also required for members who do not file their ITRs. In addition, society must provide a duplicate of the contracts signed with architects, contractors, legal advisors, and chartered accountants.
Step 7: Make arrangements for temporary lodging and ensure that all requirements are met
Make plans for the residents’ temporary stay while the project is completed. Once the reconstruction is underway, the architect must obtain Municipal Corporation permission for a new building plan, comply with all regulations, and have the society pay the premium costs. Meanwhile, if any more units are installed to sell, the legal counsel will register the project under Maharashtra RERA.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
