KNOWLEDGE SERIES SELF REDEVELOPMENT ARTICLE 1- SELF ... · redevelopment. This series would...
Transcript of KNOWLEDGE SERIES SELF REDEVELOPMENT ARTICLE 1- SELF ... · redevelopment. This series would...
Selfredevelopment.org – A initiative
Selfredevelopment.org – A initiative
KNOWLEDGE SERIES – SELF REDEVELOPMENT
ARTICLE 1- SELF-REDEVELOPMENT: THE DIY STYLE OF REDEVELOPMENT
Pranay Goyal, Expert Self-Redevelopment
Since the last few years, Self-Redevelopment has started gaining a great momentum amongst Mumbai
Societies. With the new GR released in September 2019, the State Government has shown its
inclination towards providing incentives to Societies opting for this approach. This is a clear indicator
that the State Government believes in this approach and wants Societies to take the mantle of
Redevelopment in their own hands and make the most out of it. Many Societies have already chosen
this approach and are treading successfully.
We are going to share our knowledge and expertise, gathered while practically executing few Self-
redevelopment projects, through a series of articles called the Knowledge Series – Self
redevelopment. This series would encompass articles on financing, best practices, legalities, society
decisions and many more to equip Society members to go through the self-redevelopment in a much
organized way.
This being the first article in the series gives an overview of self-redevelopment being a Do-It-Yourself
style of redevelopment.
If your building is in need of redevelopment and you have opted for Self-Redevelopment, then let us
acquaint you with a few important aspects you need to keep in mind.
Firstly, under Self-Redevelopment, society members take up the responsibility of the redevelopment
project. This helps avoid delays, ensures that the project plan and designs meet their needs and have
control over allocation of funds. Hence, this method of redevelopment helps not only in mitigating
risks but also empowers the society members with more control over the project.
In this case, the society members must gather resources and approach a professional team of experts
to show them the way and get the work done. This DIY style of redevelopment, although the oldest
and most beneficial, is considered the most reliable one. The society must make themselves aware of
the procedures and find out approaches and options which safeguard their interests against
uncertainties in the norms and the project lifecycle, ensuring a smooth journey through the project.
The society needs to apprise themselves to legal documentation, the liasioning network, broker
networks etc. and get the right team of professionals who can guide them through each of these
challenges.
For funding their self redevelopment project, the society may approach the Mumbai District Central
Co-operative Bank Ltd. for a loan, provided the society exists within Mumbai suburban, is registered
as per provisions of the Maharashtra Co-operative Society Act, 1960, and also is a member of the bank.
To get the project started, the society must have a resolution passed for self-redevelopment with
consent of all members’.
As the next step, it is recommended that the society gets the project feasibility done by calculating
the potential of development, detailed cost of the project and the possible benefits for the society
Selfredevelopment.org – A initiative
Selfredevelopment.org – A initiative
members, along with getting the below documents ready for starting the process of self-
redevelopment:
Property Card
CTS plan
7/12 extract and original plan of the building
DP / TP remarks
Copy of conveyance if obtained
Approved/OC plans
Existing carpet area statement
OC of the existing building, if obtained
Existing physical survey of the plot
Copy of assessment certificate (Property Tax)
For a Self-Redevelopment project, it is best to take all required permissions before the start of the
construction, this will make sure that the project is free of any risks from any norms changing in
future. Also, the project has to be registered under Real Estate Regulatory Authority (RERA) wherein
the society is listed as the promoter.
To sum it up, the Self-Redevelopment process comprises of concerns and tasks that members of a
society may not have the time for or knowledge of. They approach Development Managers or
Project Management Consultants to help them on their self-redevelopment journey. Since it is in
its nascent stage, societies are still figuring out what to expect and what not to expect from the
PMCs for Self-Redevelopment. As time passes, the societies will be much clear about expectations
from different professionals and the decisions they need to make to take the project in a smooth
manner to its successful completion.
FREQUENTLY ASKED QUESTIONS
(These are the questions Societies have asked in our seminars and on email)
1. How do I get Finance for Self-Redevelopment?
Society needs to approach the MDCC Bank local branch and become a member by opening an
Account. MDCC Bank provides 95% of the finance required for executing the entire Project. Society
through its PMC needs to apply to the Bank with the necessary documents, IOD Approval and
payment of processing fees to get a Sanction of the loan followed by cash-flow based
disbursements.
2. Can a Society without Conveyance go for Self?
Conveyance is an important aspect of the redevelopment process. It is required during drawing
approvals from the authorities as well as for getting loans from the Bank.
3. How much Consent is required for Self-Redevelopment?
Selfredevelopment.org – A initiative
Selfredevelopment.org – A initiative
As per the Revised Redevelopment Direction dated 4th July, 2019 issued u/s 79A of the MCS Act, 1960,
a consent of minimum 51% of the total number of society members needs to be given for Self-
redevelopment in the SGM for redevelopment where 2/3 of the total number of members of the
society are present.
4. How does a society repay the bank loan?
The Society gets a Moratorium period of 2 years to 3 years depending on the size of the Project. During
this period the interest gets accrued on the disbursements while the payments can be done after the
Moratorium period. The Society can repay the bank loan through the money received from sale of
units. The Society gets a 5 to 7 year time for repayment post its moratorium period to repay the loan.
5. How can a society know what they are getting in Self-Redevelopment?
Society needs to get the Feasibility Report done through a PMC to understand the possibilities through
Self-Redevelopment. The Feasibility Report provides the development potential of the plot, the
project costs involved and the benefits available for the Society and its members through Self
Redevelopment.
MEMBERS’ SELF-REDEVELOPMENT TIP
Self-Redevelopment Project: Jayakunj CHSL, Borivali West
Chairman: Vijay Ladhe
“One of the most important aspects in our Self-redevelopment journey has been the unity amongst
all our members. There is trust with each other and a clarity on how we take decisions objectively
ensuring every ones security, interest and faster Project completion.”
Pranay Goyal is the Founder of Wedevelopment, pioneer in the Self-Redevelopment segment
managing more than 20 societies across Mumbai in their Self-Redevelopment initiatives. Through their
on ground experience with so many societies throughout the different phases of self-redevelopment,
Wedevelopment has created a sustainable systemic approach for carrying out the entire self-
redevelopment initiative. Pranay Goyal has also launched www.selfredevelopment.org, a website with
information and tools to guide societies taking this approach.
For any queries regarding Self-redevelopment, kindly email us on [email protected] and contact
on +91 86550 99770. You may visit our websites for more information: www.selfredevelopment.org
and www.wedevelopment.in.
Selfredevelopment.org – A initiative
Selfredevelopment.org – A initiative
Jayakunj CHSL, Borivali West
Selfredevelopment.org – A initiative
Selfredevelopment.org – A initiative
Jayakunj CHSL, Borivali West
Status: 5 floors Complete
Project Completion: May 2020.