President Ram Nath Kovind has given assent to “The Gujarat Ownership Flats (Amendment) Bill” which will allow redevelopment of old and dilapidated buildings. The Bill, which was passed by the Gujarat Assembly in its monsoon session last year, allows redevelopment of a society provided 75 per cent of the members give their consent. Earlier, consent of 100 per cent of the members was required.Once notified, the Act will boost vertical development in Ahmedabad and other cities and towns of Gujarat. According to realty experts, Ahmedabad alone can witness construction of 2 lakh new dwellings in next five to seven years.
The redevelopment activity is likely to pick up in areas like Satellite, Naranpura, Navrangpura, Ambawadi, Paldi, Shahibaugh, Vastrapur and Maninagar besides Vatva and Bapunagar on eastern flanks of the city.
Relief to members of old societies
The Act will provide relief to members of old societies pending redevelopment as the earlier law required consent of 100 per cent of the members. Alpesh Patel, a committee member of Swami Vivekanandnagar Co-op Housing Society near Jodhpur crossroads, had recently submitted a petition in the Gujarat High Court seeking intervention in the redevelopment plan of the society. Patel and other members had hit the wall after a few members objected to the redevelopment plan despite the society being in apoor condition.
Talking to Mirror, Alpesh Patel said, “We are extremely happy that the Bill has been passed by the President. There are about four residents in our 78-member society who have been not cooperating with us.
“Many developers came to us with redevelopment plan, but it got scuttled on each occasion as some of the members resisted it for reasons best known to them.”
Similarly, members of Shivani Cooperative Housing Society (SCHS) near IIM-Ahmedabad were approached by several builders with redevelopment plan, and vice versa, but opposition from few members created roadblocks.
Vipul Bhavsar, Secretary of SCHS, told Mirror, “We are happy that the Bill has been passed. It will make the process of redevelopment easier. Many developers are in talks with us and we hope we will be able to enter into a deal soon. The 75 per cent rule will be a big help.”
The Presidential nod will prove to be aboon for Gujarat. Ahmedabad alone will see development of around 20 crore square feet of redevelopment in next five yearsJaxay Shah, CREDAI chairmanCommenting on Gujarat government’s move, CREDAI Chairman Jaxay Shah said “The Presidential nod will prove to be a boon for Gujarat. Ahmedabad alone will see development of around 20 crore square feet of redevelopment in next five years.”
We are extremely happy that the Bill has been passed by the President. There are four residents in 78- member society who are not cooperatingAlpesh Patel, resident of Swami Vivekanandnagar Coop SocReferring to the 1 percent Goods and Services Tax (GST) Shah for affordable housing (up to Rs 45 lakh), Shah added, “The vertical development will not only allow people to choose home within city limits but also offer them competitive rates as supply will increase in the market.”
We are a 72-bungalow society that has been approached by many developers. Now with 75 pc, consent we will be able to do better negotiations tooSoham Thakkar, resident of Alka Park Society, Jivraj ParkShah also said the tendency of antisocial elements responsible for hampering redevelopment plan will also be defeated.
We have been approached by 450 societies. Of these, we are in talks with around 30. About 7 out of 10 redevelopment plans get stuck due to lack of 100 pc consentChitrak Shah, builderAgreeing with Shah, the MD of Shivalik Group, Chitrak Shah, said, “We have been approached by around 450 societies across the city. Of these, we are in talks with around 30. About 7 out of 10 redevelopment plans get stuck as cent per cent consent is difficult to come by. With change in the law, redevelopment will pick up and prove to be boon to thousands who yearn to own a house with better amenities.”