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May 2019

Self-Redevelopment or Developers

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Successful redevelopment model for housing societies


Mumbai receives over 25,000 new migrants daily creating stress on residential spaces. Limited land parcels, ever increasing cost of land and are other rudimentary issue. In addition to this the sorry state of buildings constructed more than half a century ago is not only ruining the city’s façade but also putting the residents of such structures under risk. In the new Development Control and Promotion Regulations (DCPR-2034), the Maharashtra government has offered added FSI of up to 70% of the total existing build-up area if more than five tenanted building plots are amalgamated for joint redevelopment. This will ensure that the existing occupants of such buildings get up to 12% additional carpet area in their new flats. This has encouraged residents of older and weaker buildings to opt for redevelopment. Also, the attraction of having modern amenities and better homes is an added bonus.

Models of Redevelopment

Engaging a Developer

The housing society developers and negotiate the area and/or money to be delivered to specific residents in lieu of their space, the added amenities to be provided and the extra FSI that the developer can sell at market rate. . The selected developer undertakes the project with the promise of delivering a better structure with the desired amenities. However, there are umpteen instances where due to paucity of fund, improper planning or delay in approvals, buildings after buildings are lying un-finished, vacant with no light at the end of the tunnel.

The only solution to this is to be extremely cautious of the developer’s track record in the redevelopment space. The primary requisite here is clear communication, and a common consensus amongst all members of the society, and the developer.



The government of Maharashtra in order to allow cooperative housing societies to undertake redevelopment of their building themselves has launched the self-redevelopment scheme in January, 2018. Under this scheme, the MHADA is required to provide a single window system, for all the necessary permissions required for self-redevelopment of the housing society. As also create a panel of architects, project management consultants and contractors, to provide choices to the housing society, to select the requisite professionals needed for self-redevelopment. The Mumbai District Central Cooperative Bank (the Bank) will provide the loan for self-redevelopment of the buildings of the housing society. Even though a robust model, self- redevelopment is new to India. Therefore, it is crucial for societies to exercise due diligence by getting an experienced consultant on board before commencing with the process. An example is the Saidham society (building No. 149) at Pantnagar in suburban Ghatkopar that secured 80 per cent approval of works from MHADA and the BMC last year.


Redevelopment Consultants

As redevelopment of a building involves dealing with large sums of money and awarding contracts to various people, housing societies are posed with a number of issues that include the mismanagement of funds, delay in operations, and more importantly, the dynamic regulations of the government that are hard to keep up with, on several occasions.


Self-redevelopment or Developers


Pranay Goyal, Founder, Wedevelopment, articulates, “As a transparent, holistic and risk-mitigated approach, selfredevelopment has made its way to become the future of the real estate sector. This holds particularly true in the case of metros, where majority land has already been consumed, leaving no free land available for developers. A consultant takes a holistic approach and guides societies throughout, making the self-redevelopment process risk mitigated and reliable.

Self-redevelopment requires society residents’ active involvement throughout the execution of the project, until its completion, especially in activities ranging from securing required approvals from concerned authorities to getting necessary no-objection certificates, and having all the paperwork in place, as the entire onus of the project lies with them. Goyal emphasizing the role of consultants states that they provide complete clarity to societies and practically handhold them through each step of the execution via a systematic approach while complying with changing government norms such like RERA, GST, and more, and securing essential permissions, among others.

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What is the procedure of self redevelopment?

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What is the procedure of self redevelopment?

The DIY route to redevelopment: Self-redevelopment is more feasible for housing societies in Mumbai now, thanks to easier norms for loans and sanctions


For some housing societies in Mumbai, redevelopment looks a little different. It doesn’t mean waiting for a third-party developer to come calling, making an offer, sitting through endless rounds of negotiation and acceding to the additional floors the developer will construct for returns on his investment.

Instead, the redevelopment process is all done in-house, overseen by the society. It’s easier to do that than before. In the last two years, more banks have started to provide easy loans for self-redevelopment. They also help residents get all the sanctions in place. The residents exercise greater say in how the structure will look and operate and even choose the architect that fits their vision and budget.

“Around 20,000 cooperative housing societies in Mumbai need redevelopment,” says Deben Moza, executive director and head of project management services at realty consultancy Knight Frank India. “The societies would earlier approach the developers for redevelopment but now several are opting for self-redevelopment. They get to take control of what amenities and how much extra carpet area they want. They get to keep the profit they earn after selling the extra flats.”

But it does mean additional work and several challenges for a group of non-professionals. Here’s how some of them did it.


Self-redevelopment looked like the only option for the residents of Suma Sam Co-operative Housing Society in Borivli after the developer ran out of funds and could not take the redevelopment plan ahead. “Our three-storey building with seven flats was not in a good state, we wanted to start redeveloping it immediately,” says PS Lopes, 68, treasurer in the managing committee of the housing society.

Lopes read about self-redevelopment in the newspapers last year. “We got to know that Mumbai District Cooperative bank grants loans for self-redevelopment of old buildings and there are startups and firms that take care of all the paperwork,” he says.

They partnered with Wedevelopment, a firm that provides self-redevelopment services to the housing societies. “We did not want a swimming pool or a clubhouse that a developer would have given us. We instead got branded faucets that will last for years and will not need maintenance,” Lopes says.

The society got a sanctioned loan of Rs 5 crore by Mumbai Bank last year for redevelopment into a seven-story building with 22 flats. Sale of the excess flats will help repay that loan. The project is currently under construction and will be ready by June 2020.


When a housing society takes the self-redevelopment the route, the members get to decide which architects and contracting firms they want to hire.

So how does it work? For a housing society to start redevelopment by itself, it must first need approval from all the members, unlike an external redeveloper who needs approval from 51% of members to go ahead. “Some members will have to lead the way, it’s mostly the chairman of the managing committee, general secretary and the treasurer,” says Pranay Goyal, founder, Wedevelopment. “They ensure that all the residents have agreed for the project and all the approvals are in place.”

Once there is a consensus, the society can hire a self-redevelopment firm to help with construction and paperwork. “When a housing society hires us, we take care of everything,” says Goyal at Wedevelopment. “We help them design a plan according to their needs, if they want bigger balconies and smaller corridors, for instance.” The firms also take care of getting all the sanctions from Brihanmumbai Municipal Corporation (BMC) and handle all the paperwork and help people get flats to rent after they vacate the building.

The members can then choose an architect and contractors for plumbing and electrical fittings. “You can turn it into a green building by using the appropriate building material, decide on the effective waste management system and even design the society garden according to the members’ choice,” says Nilesh Koladia, director, Swayam Redevelopment Consultants

Currently, the Mumbai District Central Co-operative Bank is authorised to provide loans for self-redevelopment of housing societies in the city. “The chief minister has promised to come up with a policy framework to push self-redevelopment and we expect that there will be more resources you can avail finance from and tax exemptions for self-redeveloped projects in the future,” says Koladia.

“The profit earned by selling excess flats is usually distributed among the society members,” says Amit Wadhwani, co-founder of brokerage firm Sai Estate Consultants. The money also goes towards repayment of the bank loan. “If the societies choose the conventional redevelopment route this windfall belongs to the developing firm.”


In Mumbai, if the building society meetings can be long-winded and ego-driven, self-redevelopment projects are likely to be even worse. The consensus from every single member is often hard to obtain – there’s always that one stubborn holdout.

Even the bank needs signatures of approval from all the members before granting the loan for self-redevelopment. “The managing committee of our society in Kandivli helped the residents (especially the retired people) understand that they will not have to run around to do the paperwork, look for plumbing contractors or finding a house to rent temporarily,” says Vijay Ladhe, 68, chairman of the managing committee, Jaya Kunj Co-operative Housing Society.

“One issue with self-redevelopment is that not all the people who are making decisions have got expertise in the field of real-estate,” says Ramesh Sanghvi, CMD, Sanghvi Parrsssva Group, a real-estate developer firm. “You need to have a fair idea on how to use the funds effectively, how to divide the profits earned and which architect to hire. It is also not easy to take care of all this with one’s full-time job.”


What is the procedure of self redevelopment?

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Every problem is unique, and requires an all-round perspective to arrive at the best-fit Solution
Being a leader in the Self-Redevelopment space brings its own sets of responsibilities, of creating the right path and helping others in moving in the right direction.
Troubleshooter, is an initiative by Wedevelopment to guide Societies who are willing to opt for self redevelopment or already have initiated the journey of Self Redevelopment but have hit a wall in the process.
It is a One to One Consulting platform for Co-operative Societies to get the right answers.

The above Consulting is for the following Category of Societies/Challenges:

The Team of TroubleShooters:
Wedevelopment along with the following Industry experts are coming together to help you:

The Cost:
This Consulting Session is FREE for the Societies registering before 10th July 2020.

Please note:
In order to organise the session with the right expert and value time of the session, Society is requested to send a note with the following info:

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