knowledge series self redevelopment article 1- self ... · redevelopment. this series would...

Selfredevelopment.org – A initiative


KNOWLEDGE SERIES – SELF REDEVELOPMENT

ARTICLE 1- SELF-REDEVELOPMENT: THE DIY STYLE OF REDEVELOPMENT

Pranay Goyal, Expert Self-Redevelopment

Since the last few years, Self-Redevelopment has started gaining a great momentum amongst Mumbai

Societies. With the new GR released in September 2019, the State Government has shown its

inclination towards providing incentives to Societies opting for this approach. This is a clear indicator

that the State Government believes in this approach and wants Societies to take the mantle of

Redevelopment in their own hands and make the most out of it. Many Societies have already chosen

this approach and are treading successfully.

We are going to share our knowledge and expertise, gathered while practically executing few Self-

redevelopment projects, through a series of articles called the Knowledge Series – Self

redevelopment. This series would encompass articles on financing, best practices, legalities, society

decisions and many more to equip Society members to go through the self-redevelopment in a much

organized way.

This being the first article in the series gives an overview of self-redevelopment being a Do-It-Yourself

style of redevelopment.

If your building is in need of redevelopment and you have opted for Self-Redevelopment, then let us

acquaint you with a few important aspects you need to keep in mind.

Firstly, under Self-Redevelopment, society members take up the responsibility of the redevelopment

project. This helps avoid delays, ensures that the project plan and designs meet their needs and have

control over allocation of funds. Hence, this method of redevelopment helps not only in mitigating

risks but also empowers the society members with more control over the project.

In this case, the society members must gather resources and approach a professional team of experts

to show them the way and get the work done. This DIY style of redevelopment, although the oldest

and most beneficial, is considered the most reliable one. The society must make themselves aware of

the procedures and find out approaches and options which safeguard their interests against

uncertainties in the norms and the project lifecycle, ensuring a smooth journey through the project.

The society needs to apprise themselves to legal documentation, the liasioning network, broker

networks etc. and get the right team of professionals who can guide them through each of these

challenges.

For funding their self redevelopment project, the society may approach the Mumbai District Central

Co-operative Bank Ltd. for a loan, provided the society exists within Mumbai suburban, is registered

as per provisions of the Maharashtra Co-operative Society Act, 1960, and also is a member of the bank.

To get the project started, the society must have a resolution passed for self-redevelopment with

consent of all members’.

As the next step, it is recommended that the society gets the project feasibility done by calculating

the potential of development, detailed cost of the project and the possible benefits for the society



members, along with getting the below documents ready for starting the process of self-

redevelopment:

Property Card

CTS plan

7/12 extract and original plan of the building

DP / TP remarks

Copy of conveyance if obtained

Approved/OC plans

Existing carpet area statement

OC of the existing building, if obtained

Existing physical survey of the plot

Copy of assessment certificate (Property Tax)

For a Self-Redevelopment project, it is best to take all required permissions before the start of the

construction, this will make sure that the project is free of any risks from any norms changing in

future. Also, the project has to be registered under Real Estate Regulatory Authority (RERA) wherein

the society is listed as the promoter.

To sum it up, the Self-Redevelopment process comprises of concerns and tasks that members of a

society may not have the time for or knowledge of. They approach Development Managers or

Project Management Consultants to help them on their self-redevelopment journey. Since it is in

its nascent stage, societies are still figuring out what to expect and what not to expect from the

PMCs for Self-Redevelopment. As time passes, the societies will be much clear about expectations

from different professionals and the decisions they need to make to take the project in a smooth

manner to its successful completion.

FREQUENTLY ASKED QUESTIONS

(These are the questions Societies have asked in our seminars and on email)

1. How do I get Finance for Self-Redevelopment?

Society needs to approach the MDCC Bank local branch and become a member by opening an

Account. MDCC Bank provides 95% of the finance required for executing the entire Project. Society

through its PMC needs to apply to the Bank with the necessary documents, IOD Approval and

payment of processing fees to get a Sanction of the loan followed by cash-flow based

disbursements.

2. Can a Society without Conveyance go for Self?

Conveyance is an important aspect of the redevelopment process. It is required during drawing

approvals from the authorities as well as for getting loans from the Bank.

3. How much Consent is required for Self-Redevelopment?



As per the Revised Redevelopment Direction dated 4th July, 2019 issued u/s 79A of the MCS Act, 1960,

a consent of minimum 51% of the total number of society members needs to be given for Self-

redevelopment in the SGM for redevelopment where 2/3 of the total number of members of the

society are present.

4. How does a society repay the bank loan?

The Society gets a Moratorium period of 2 years to 3 years depending on the size of the Project. During

this period the interest gets accrued on the disbursements while the payments can be done after the

Moratorium period. The Society can repay the bank loan through the money received from sale of

units. The Society gets a 5 to 7 year time for repayment post its moratorium period to repay the loan.

5. How can a society know what they are getting in Self-Redevelopment?

Society needs to get the Feasibility Report done through a PMC to understand the possibilities through

Self-Redevelopment. The Feasibility Report provides the development potential of the plot, the

project costs involved and the benefits available for the Society and its members through Self

Redevelopment.

MEMBERS’ SELF-REDEVELOPMENT TIP

Self-Redevelopment Project: Jayakunj CHSL, Borivali West

Chairman: Vijay Ladhe

“One of the most important aspects in our Self-redevelopment journey has been the unity amongst

all our members. There is trust with each other and a clarity on how we take decisions objectively

ensuring every ones security, interest and faster Project completion.”

Pranay Goyal is the Founder of Wedevelopment, pioneer in the Self-Redevelopment segment

managing more than 20 societies across Mumbai in their Self-Redevelopment initiatives. Through their

on ground experience with so many societies throughout the different phases of self-redevelopment,

Wedevelopment has created a sustainable systemic approach for carrying out the entire self-

redevelopment initiative. Pranay Goyal has also launched www.selfredevelopment.org, a website with

information and tools to guide societies taking this approach.

For any queries regarding Self-redevelopment, kindly email us on [email protected] and contact

on +91 86550 99770. You may visit our websites for more information: www.selfredevelopment.org

and www.wedevelopment.in.

http://www.selfredevelopment.org/

mailto:[email protected]

http://www.selfredevelopment.org/

http://www.wedevelopment.in/



Jayakunj CHSL, Borivali West



Jayakunj CHSL, Borivali West

Status: 5 floors Complete

Project Completion: May 2020.

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