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Mumbai: In Mulund (East), a 23-storey residential tower is under finalisation. Civil and electrical work is underway, and crews are painting and plastering the new apartments. In the next six months, four years after construction began, the proud owners will move into their new homes.
But they don’t have to thank any builder for this. Because there was no builder there.
The residents of Poorvarang Housing Society did it on their own under a self-redevelopment plan. Mulund Tower is the latest example of self-redevelopment in which the residents, instead of the developer, enjoy all the benefits (and profits) of the project.
Redevelopment in Mumbai has been a messy business. While many reputed builders have redeveloped residential complexes without much complaints, the experience has been a nightmare for thousands of residents. These families still don’t have a roof, as builders have either abandoned the project overnight or delayed redevelopment by several years, in many cases by 10 to 20 years.
The 56 residents of Mulund’s Poorvarang Society were aware of the problem as they had seen some projects in their neighborhood stuck for years. “When we first started discussing redevelopment of our society in 2017, unfinished projects in the neighborhood were a major concern. We don’t want to be left stranded if a builder suddenly stops paying rent for alternate accommodation. It was unanimously decided that we will go for self-redevelopment,” said Varun Gadade, a member of the society, who gave this correspondent a tour of the new tower.
Poorvrang Society was seven storeyed MHADA Construction for middle income families. Each flat was just 389 square feet of carpet. Now, in the new tower, each of the 56 families will be entitled to a spacious 960 sq ft apartment with all modern amenities.
The society has already sold 50 of the 65 additional apartments built in the free sale component and has collected Rs 60 crore so far. Society chairman Milind Mahadik said, “We are expecting a total sale of Rs 85 crore.” The members formed various committees to execute the project. “One handled the accounts, another did marketing, third team for registration of documents, fourth team to liaise with government agencies like MHADA and a legal committee,” he added. The Society has also appointed global property consultant, Cushman & Wakefield as Project Management Consultant (PMC).
Property industry sources said the state government’s recent decision to reduce stamp duty to Rs 1,000 for societies going in for self-redevelopment has once again rekindled the interest of cooperative housing societies in redeveloping their properties.
“The previous government resolution of September 13, 2019, which offered several benefits for self-redevelopment including increase in FSI, 4% interest subsidy on loans, single window for approvals, 50% waiver in premium, was only partially implemented by MHADA. “Nothing positive happened on that front for three years,” he claimed.
However, the societies which had opted for self-redevelopment even before 2019 GR are also reaping the benefits as these buildings are now completed, some occupied, some ready for occupation. Chitra Society in Chembur and Jin Prem in Charkop are among those who have successfully completed self-redevelopment without taking loans from banks. The residents of Purrang improved the model by taking professional help.
Charkop has been at the forefront of self-redevelopment with several societies in advanced stages of construction. Charkop Shvetambara Society has completed 19 floors out of 21 floors sanctioned. The possession is expected in this December. Charkop Kshitij Society has obtained CC for 21 floors and has completed 9 floors. Charkop’s Shalimar Society has completed parking and two floors and can complete the project without availing bank loan. Abhilasha Society has also started the foundation work and it will have 20 floors.
In other suburbs, at Tillibai Society, Malad (East) in Bachani Nagar, stilts and two 2nd floors have been completed, while in Rang Tarang Society Building 1, Shailendra Nagar, Dahisar (East), foundation work is in progress. Good Earth Society, Chembur has reached the stage of final approval of plans. In Borivali’s Kesar Krupa Society, residents have vacated the building after getting all the construction clearances.
The Initial Clearance (IOD) has been received by the Swayambhu Society at Arya Chanakya Nagar in Akurli (Kandivali East). Sarjeevan Society in Malad (East) has submitted the plan to BMC for approval.
“The movement for self-redevelopment has begun. People have accepted it as a preferred model. It should be increased. The government can help by speedily approving permissions and providing funds. Housing activist Chandrashekhar Prabhu said, “This could be a game-changer and change the face of urban India.”
Self-redevelopment has several benefits for the society members: 1) More area than what is offered by the builder in a new house. 2) Amount in excess of the amount given by the builder. 3) Better planning as per the requirements of the members 4) Timely completion. 6) There is no need to give irrevocable power of attorney to anyone. 7) Better facilities.
However, the drawbacks may be: 1) Lack of decision making among the members may lead to delay. 2) Internal bickering among the members can derail the project. 3) selection of professionals is difficult; If incompetent, inexperienced or unqualified professionals are selected, the project may suffer.
