Tired of developers, in a first of its kind move, a housing society took a loan of Rs 110 crore to carry out self-redevelopment in Borivali. Shailesh Vihar Apartments near Bhagwati Hospital has received the loan so that they can carry out the redevelopment without any developer. The society says that after redevelopment, they will get homes that are 48 per cent bigger than their existing ones and after repaying the loan, they will still earn Rs 20-25 crore. This will be another first.

According to the secretary of Shailesh Vihar Apartments Rohit Shetty, they had roped in a developer for redevelopment nearly five years ago, but because of dilly-dallying the project never took off. There were few more developers who got involved but the society and the developers couldn’t agree on the same points. Towards the end, they met a group of people who suggested the option of self redevelopment.

The society currently consists of four wings spread over a plot of 3,700 sq m and has 87 members, including 13 commercial establishments within the premises. It was originally built in 1974.

“We tried with developers first, but things didn’t materialise, and then we met some people who are now helping us to carry out self redevelopment of the area. The loan amount we have got is Rs 110 crore from Mumbai District Bank, and the interest amount right now told to us is 12.5 per cent. Our calculation shows that we will get 48 per cent bigger homes than the ones we live in now, and also we will save up to Rs 20-25 crore even after paying the loan. This will make our homes maintenance free,” said Shetty.

According to Shetty, earlier all these benefits were being pocketed by the developer, but now the society and its members shall get it. Pravin Darekar, Chairman, Mumbai Bank said, “We received more than 350 proposals of which 13 proposals were expedited. The loan amount sanctioned varies from Rs 6 crore to Rs 110 crore. Of which Shailesh Vihar in Borivali has been sanctioned Rs 110 crore. The disbursal of the loan will be done in a phases manner. As per RERA guidelines, we are willing to give bigger loans, too, to bigger societies to encourage self-redevelopment.”

The money that will come from the sale of flats will be used for repaying the loan as well as for the society.

The total cost of the project is Rs 190 crore, but the society went for a lesser amount as they didn’t need so much. Pranay Goyal, of Wedevelopment, an organisation that helps societies in self-redevelopment, said, “This is the biggest project of self-redevelopment. Here the society will get all the benefits, including the one from sale of flats that will be generated.”