The government's initiative to expedite housing society redevelopment in Mumbai and Pune by offering quick deemed conveyance for those opting for self-redevelopment faced low interest, with none of the 716 applications filed between May and October choosing this route. Deemed conveyance, a legal document facilitating land ownership transfer to cooperative housing societies, was part of a policy introduced on May 31 to streamline the process. Challenges cited include limited availability of loans for self-redevelopment, with only one bank currently offering such loans, and reluctance among elderly or retired residents in buildings to undertake the complexities of the self-redevelopment approach.
The government's initiative to streamline the process of housing society redevelopment by allowing quick deemed conveyance for those opting for self-redevelopment encountered a lack of interest in Mumbai and Pune from May to October this year. Deemed conveyance is a legal document facilitating the transfer of land ownership from a developer to a cooperative housing society, enabling further property development.
Despite the policy, data obtained through the Right to Information (RTI) Act revealed that none of the 716 applications for deemed conveyance filed during this period in Mumbai and Pune were for self-redevelopment, indicating the challenges and limited adoption of this approach. The majority of applications, 364, were from Mumbai and its suburbs, with the remaining from Pune city and rural areas.
The data indicates that despite the government's efforts to simplify the process, housing societies in Mumbai and Pune have been hesitant to embrace self-redevelopment, potentially due to financial constraints, limited loan availability, and the complexities involved in the initiative.
The policy, introduced on May 31, requires housing societies to pass a resolution for self-redevelopment before applying for deemed conveyance, promising a one-month turnaround for the conveyance deed, down from the previous six-month deadline.
Currently, only one bank, Mumbai District Cooperative Bank, offers loans for self-redevelopment. The loan amount is capped at Rs 200 crore, enough to finance only around four to five projects in compliance with RBI directives.
Some say that while government schemes appear promising, obtaining necessary approvals and securing funds for self-redevelopment remains a very big challenge.
The present situation underscores the importance of looking into multiple aspects for any policy to be successful. While the Maharashtra Government’s self-redevelopment idea in itself is welcomed by all, it is not being undertaken because of the inherent complexities for residents in getting funds and supervising all the other aspects related to redevelopment. If considerations are made to this end, we may find self-redevelopment projects in the near future.
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