In order to put stalled real estate projects on track and bring ease in self-redevelopment of housing societies, Maharashtra Deputy Chief Minister Devendra Fadnavis, who is also the housing minister of the state, on May 8, directed the state administration to fast-track implementation of the self-redevelopment policy approved by the government back in 2019.
For this, a dedicate cell will be formed. Along with this, the Maharashtra government is also expected to come up with a policy for stalled real estate projects.
According to the 2019 policy, several incentives were being offered to co-operative housing societies that wanted to opt for self-redevelopment. This included exemption on the minimum requirements of nine-metre road for fire approval, Goods and Services Tax (GST) rebate, and partial relief in premiums paid for real estate projects followed by approvals for floor space index (FSI).
However, after the policy was approved in 2019, there was a change of government in Maharashtra. And then in March 2020, the COVID-19 pandemic hit the state.
Valsa Nair Singh, Additional Chief Secretary of the Housing Department in Maharashtra, told Moneycontrol, "There was a policy formed by the state government in 2019, but after the policy was formed there was a change of government. Hence, the policy could not be followed in toto."
She added, "The meeting was a review of the 2019 policy on where we stand today. All the departments have been directed to implement the policy on self-redevelopment, especially the incentives and concessions."
A state government official said, "A dedicated single window will be created in Mumbai for self-redevelopment and the applications received there will be processed within three months. In the meeting, it was also discussed to have the cooperative department involve all the banks which will come forward to provide financial assistance for self-redevelopment. This will be followed by the finance department preparing a proposal regarding the provision of GST rebate and interest rebate for self-redevelopment."
Developers welcome move
Sandeep Runwal, President, NAREDCO Maharashtra, an apex body of real estate developers, said, "Stalled redevelopment projects have become a bane for so many residents of Mumbai. These residents are deprived of the basic necessity of shelter. They have to make ends meet to support themselves and their families amidst the rent payout, bank EMIs, etc. This is a great initiative taken by the chief minister, and we at NAREDCO Maharashtra are looking forward to working together in finding a quick and lasting solution."