Things To Know Before You Head For Self-Redevelopment In Mumbai
India’s financial capital Mumbai had nearly 14,000 buildings that were in dire need of redevelopment according to private estimates. In such a scenario, waiting for the government to initiate action may not be the wise thing to do. But even if the members of a housing society are inspired to get into self-redevelopment, there are so many areas where clarity is wanting.
In an interview with Sneha Sharon Mammen, Pranay Goyal, managing director, Wedevelopment, tries to offer better clarity to those property owners who are planning to redevelop their old properties.
Here are the edited excerpts of the interview.
Mammen: What are the benefits of self-redevelopment?
Goyal: Self-redevelopment is the process wherein the society members assume the mantle of the redevelopment project. They can avoid delays, ensure the project plan and designs meet their needs and control the allocation of funds. This method of redevelopment not only helps in mitigating risk but also benefits the members by giving them more control over the project.
Mammen: What tips would you give someone who is looking at self-redevelopment?
Goyal: In this case, the society must gather resources and approach a team of professionals to guide them and get the job done. This do-it-yourself style of redevelopment, despite being the oldest and most beneficial, is considered the most tedious. The society must make themselves fully aware of the processes and create approaches and options safeguarding their interests towards uncertainty in the norms and the project lifecycle, ensuring a smooth journey through the project.
The society should be ready to battle the possible challenges of legal documentation, of the liaisoning network, of raising initial funds, etc., and get the right professionals, who can support them through each of these challenges.
Mammen: What about the finance?
Goyal: About the project funds and finances, the society may approach the Mumbai District Central Co-operative Bank Ltd, provided the society exists within Mumbai suburban, is registered under provisions of the Maharashtra Co-operative Society Act, 1960, and is a member of the bank.
To initiate the project, the society must have a resolution passed for self-redevelopment with consent of all members.
As a subsequent step, it is recommended that the society gets project feasibility made by calculating the development potential, the detailed project costs and the possible benefits for members, while getting the documents ready for starting the process of self-redevelopment.
Mammen: Which are the important documents one should keep handy?
Goyal: These include property card, CTS plan, 7/12 extract and original plan of the building, DP/TP remarks, copy of conveyance if obtained, existing approved plans, existing carpet area statement, OC of the existing building, if obtained, existing physical survey of the plot, etc.
Other documents include cess category certificate, committee resolution for self-redevelopment, a copy of assessment certificate (property tax), etc.
Mammen: Should such a project be registered under the RERA?
Goyal: In self-redevelopment, it is advisable to take all permissions before the construction begins to ensure the project is risk-free from any norms being changed later. The project needs to be registered under Real Estate Regulatory Authority (RERA) wherein the society is listed as the promoter.
Mammen: What is the role of project management consultants?
Goyal: The process of self-redevelopment comprises concerns and tasks that society members may not have the time for or knowledge of. They approach project management consultants (PMCs) to guide them on this journey. Since self–redevelopment is in its nascent stage, societies are still figuring out what to expect and what not to expect from the PMCs. And in the confusion, they end up going with PMCs that have limited capabilities for this approach of redevelopment. As time passes, the societies face pitfalls and are, once again, stuck with a delayed or incomplete project.
Mammen: What does Wedevelopment offer?
Goyal: Today, societies want an end-to-end single window solution for self-redevelopment. Wedevelopment is partnering with such societies to manage the different professionals involved, the arrangement of finances, the quality standards, the government norms, the legalities involved and the sales. Wedevelopment also provides societies with insights, supporting them in making critical decisions and anticipating possible risks, providing mitigating options and ensuring project success.