G.R. Dt. 13th September, 2019 – Department of Housing- Sub- Incentives for the Self-Redevelopment of Housing Societies in Maharashtra
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Incentives to be granted for accelerating Self-Redevelopment of the Registered Co-operative Housing Societies in the State
Government of Maharashtra
Department of Housing
Government Resolution No:- Sankirna-2019/Pra.Kra.10/DuVaPu-1
Mantralaya, Mumbai-400 032
Dated 13th September, 2019
Vide:- Government Resolution in the Department of Housing, bearing No:- Sankirna-2019/Pra.Kra.10/DuVaPu-1, Dt.8th March, 2019.
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Preface:-
For carrying out Redevelopment of old and dilapidated buildings in the State, a developer is appointed by the concerned Co-operative Housing Societies as per the prevailing procedure. Redevelopment of co-operative housing societies is carried out as per the provisions of the Development Control Regulations framed by the concerned Planning Authority/Municipal Corporation/Local Self-Government Body. Since the benefit of additional Floor Space Index available under the Development Control Regulations, primarily accrues to the developers, the members of the concerned co-operative housing societies do not derive any special benefit. Moreover, the participation of the members of co-operative housing societies in the Redevelopment Process being marginal, the entire project is implemented as per the whims of the developer and consequently, it is noticed that several projects are left incomplete. Furthermore, the purchasers who borrow loans to invest in the saleable flats of the project have to face financial difficulties for non-delivery of possession of house within the prescribed time. In view of these circumstances, if members of the concerned co-operative housing societies come together and opt for the Self-Redevelopment, the concerned co-operative housing society can retain its complete control over the Redevelopment Project. Furthermore, the members of the co-operative society can derive benefit of additional Floor Space Index, as well. Accordingly, in the Meeting of the State Cabinet held on 08/03/2019, a decision was taken to grant incentives to all registered co-operative housing societies in the State standing on government/semi-government/private lands by way of encouragement to opt for Self-Redevelopment of their buildings.
In furtherance of the decision taken in this Meeting a High Level Committee presided over by the Additional Chief Secretary (Housing) was constituted under Government Resolution in this Department, Dt. 08/03/2019, to make recommendations to the Government, as to the nature and extent of incentives to be granted to the Registered Co-operative Housing Societies for the Self-Redevelopment of their buildings. The Report of this Committee has been received by the Government and the Government has accepted the same. In furtherance of the Recommendations contained in this Report, the Government contemplated the matter of granting incentives to all registered co-operative housing societies in the State standing on government/semi-government/private lands for the Self-Redevelopment of their buildings.
Government Resolution:-
The High Level Committee has made the following recommendations to encourage all registered co-operative housing societies in the State standing on government/semi-government/private lands to opt for Self-Redevelopment of their buildings.
1] Eligibility for Self-Redevelopment:- Those buildings of co-operative housing societies in the State, which are 30 years old or older, shall be eligible for Self-Redevelopment.
2] Single Window System:- In a Scheme of Self-Redevelopment of co-operative housing societies in the State several permissions are required from various government/semi-government departments. To procure all such permissions independent follow-up with various departments is necessary; consequently, this process takes a longer time. If such permissions are granted within the prescribed time and in a single office, it would speed-up redevelopment process and help completion of the scheme, sooner. Hence, Single Window System should be started to provide various permissions required in the Self-Redevelopment of co-operative housing societies in the State, in one place.
3] Time Limit for the Grant of Sanction for the Scheme:- It should be made mandatory to process all permissions in the Scheme of Self-Redevelopment of co-operative housing societies through Single Window System, within 6 months of the date of receipt of the proposal.
4] Floor Space Index/Incentive Area:- Those co-operative housing societies in the State which are more than 30 year old and opt for Self-Redevelopment, should be permitted 10% surplus Floor Space, over and above the Floor Space Index/Incentive Area permissible for Redevelopment under the relevant Local Development Control Regulations. Where Rehabilitation Area required for the residents from the buildings exceeds permissible Floor Space Index, 10% additional Floor Space over and above the Rehabilitation Area should be permitted. Furthermore, for the buildings abutting roads having width of less than 9.00 Mt, 0.4 free-of-cost FSI should be allowed instead of 0.2 FSI (inclusive of premium) presently permissible.
5] Regarding Roads necessary for Redevelopment:- For those co-operative housing societies which opt for collective Self-Redevelopment, the condition of having two roads should be relaxed and Redevelopment of buildings abutting 9.00 Mt. wide roads in the densely populated locality and buildings abutting 12.00 Mt. wide roads in the sparsely populated locality should be permitted. Furthermore, the concerned co-operative housing society should provide the necessary land for the widening of roads to 9.00 Mt and accordingly, it should be granted proportionate set-off in the Front Margin of the building.
6] Transferable Development Rights (TDR):- If the co-operative housing societies in the State opting for Self-Redevelopment are required to purchase TDR, such societies should purchase such Transferable Development Rights (TDR) at 50% concessional Rate of the Ready Reckoner Rate from the concerned Planning Authority.
7] Concession in Premium Rates:- In the course of Redevelopment, various types of premium are levied by the concerned Planning Authorities; such Premium rates add to total cost. Hence, grant of concession in such premium rates is necessary in order to encourage the registered housing societies in the state to opt for Self-Redevelopment. Accordingly, concession in the rates of various premium levied by the Planning Authorities ought to be given.
8] Fixing Slabs for the Payment of Premium:- In a Redevelopment Process when the Plans are sanctioned by the concerned Planning Authority, payment of various premiums is mandatory. If the amount of such premium is to be paid in lump-sum, it would impose a huge load on the project cost, at one time. Consequently, the concerned housing society may face paucity of funds. To overcome this difficulty, the concerned Planning Authority, instead of forcing the concerned parties to pay various types of taxes/premium necessary in the self-Redevelopment in lump-sum, should fix various slabs for such payment.
9] Concession in various Taxes/Fees for the Registered Housing Societies opting for Self-Redevelopment:-
(a) Land under Construction Assessment Tax (LUC Tax):- If the registered housing societies opting for Self-Redevelopment complete such Redevelopment within the prescribed time limit, such societies should be granted concession in LUC Tax. However, in case of societies, which do not complete Self-Redevelopment within the prescribed time limit, LUC Tax should be recovered at the current prevailing rate.
(aa) Stamp Duty:- Since in any Self-Redevelopment Project there is no third party beneficiary other than the existing co-operative housing society, there is no need to execute any Agreement. Consequently, as the proposed houses are provided to the existing tenement holders through Self-Redevelopment, the members of co-operative housing societies opting for Self-Redevelopment should be charged a Stamp Duty along the lines of the Pradhan Mantri Awas Yojna which charges a Stamp Duty of Rupees 1,000/- from the beneficiaries of the Projects towards Agreements for such new tenements. However, for the Agreements pertaining to tenements made available for sale in open market in new buildings to be constructed upon Self-Redevelopment, other than the flats earmarked for the original members, Stamp Duty should be charged at the prevailing rate.
(e) Goods and Service Tax (GST):- The registered housing societies opting for Self-Redevelopment should be offered concession in the Goods and Service Tax payable by them.
(ee) Open Space Deficiency Development Charges:- The registered housing societies opting for Self-Redevelopment should be offered concession in the Open Space Deficiency Development Charges.
10] Nodal Agency:- A Nodal Agency is required to supply fiancé to the registered co-operative housing societies in the State opting for Self-Redevelopment, as well as to guide and encourage them, from time to time, for the implementation of the Scheme. In view thereof, the State Co-operative Bank which is the Apex Bank in the Co-operative Sector shall act as the Nodal Agency for the Self-Redevelopment of the co-operative housing societies in the State, through the medium of the District Central Co-operative Bank of the respective district. In order to accelerate Self-Redevelopment of co-operative housing societies, the Nodal Agency should publish elaborate information pertaining to the entire procedure and process of Self-Redevelopment through various publishing media.
11] Time Limit for the Completion of Self-Redevelopment:- Those registered housing societies in the State which opt for Self-Redevelopment shall be obliged to complete the entire Redevelopment work within 3 years of the sanction of the Scheme by the concerned Authority.
12] Concession in the Interest Rate of Loan:- The housing societies opting for Self-Redevelopment should be offered subsidy in the interest rate of bank loan. Accordingly, 4% subsidy in the interest rate should be offered by the Government.
13] Authority for Self-Redevelopment:- The Authority which presently sanctions Redevelopment of housing societies shall act as the Planning Authority for Self-Redevelopment of co-operative housing societies.
14] Tripartite Agreement:- The Agency supplying finance to the co-operative housing societies opting for Self-Redevelopment, the concerned co-operative housing society and the contractor appointed by such society, shall be obliged to execute a Tri-partite Agreement incorporating necessary Terms and Conditions governing Self-Redevelopment.
15] Self-Redevelopment of Society under the Pradhan Mantri Awas Yojna:- If the concerned registered housing societies are ready to build 35% flats from the saleable component for the beneficiaries from the Economically Weaker Section/Lower Income Group (EWS/LIG) Beneficiaries in conformity with the Guidelines of the Pradhan Mantri Awas Yojna, then such registered cooperative housing societies should be offered 2.5 Floor Space Index along the lines of the Pradhan Mantri Awas Yojna, a subsidy of Rs. 2,50,000/- to the eligible beneficiaries and such other ancillary benefits.
16] Vigilance Committee:- It is imperative that the Self-Redevelopment of co-operative housing societies be completed within the prescribed time and that the construction of new buildings be of good quality. In view thereof, the concerned co-operative housing society should constitute a Vigilance Committee comprising minimum two representatives from the concerned society, minimum one representative from the financial institute offering financial assistance for the Self-Redevelopment, to control and supervise the work pertaining to the Self-Redevelopment. The said Committee shall be obliged to conduct a site-inspection of work of new buildings at the interval of every three months and submit a Progress Report in that regard, to the concerned co-operative housing society, as well as the concerned Planning Authority.
17] Grievance Redress Committee:- The possibility that several types of difficulties/grievances/objections may arise during the course of Self-Redevelopment of the registered co-operative housing societies in the State, cannot be ruled out. Accordingly, there shall be a Grievance Redressal Committee at the level of each district to resolve difficulties. This Committee shall comprise the following officers/office bearers:-
(1) The District Deputy Registrar of the concerned district or the Representative nominated by him.
(2)The officer authorised by the Planning Authority in the concerned district.
While redressing grievance pertaining to the Self-Redevelopment of a co-operative housing society from the district, it shall be mandatory to summon the Members of the Vigilance Committee constituted to exercise control over the work of Self-Redevelopment and minimum two Representatives from the concerned registered co-operative housing society for the hearing of complaint.
18] Criteria and Registration pertaining to the Contractor:- The concerned Planning Authority should set the criteria regarding the contractors who are to appointed for the Self-Redevelopment of co-operative housing societies, having due regard to the local conditions/circumstances. Moreover, such contractors shall be obliged to get themselves registered with the concerned Planning Authority.
19] Appointment of Contractor for Self-Redevelopment:- The concerned co-operative housing societies appoint contractors for their Self-Redevelopment. Hence, it is imperative that only deserving and competent contractors be appointed. For this purpose, the concerned co-operative housing society should appoint technically/financially competent contractors by examining the contractor’s financial Balance Sheets for the preceding three years.
20] Action to be taken against the Contractor Appointed for Self-Redevelopment:- Once the co-operative housing society receives proposal regarding Self-Redevelopment from the contractor, including Building Plans for new buildings/phases of building construction and the time limit for its completion, the Vigilance Committee shall start exercising its control over the progress of construction and the quality of construction. Accordingly, if progress of work as per the Reports submitted to the co-operative housing society by its Vigilance Committee is not satisfactory and there delay in the completion of Project, the concerned co-operative housing society may remove the delinquent contractor and appoint a new contractor. Moreover, the concerned Planning Authority should blacklist such delinquent contractor and no new project should be sanctioned in favour of such delinquent contractor.
2. This Government Resolution has been made available on the website of the Government of Maharashtra viz. www.maharashtra.gov.in and its Code Number is 201909131802099409. This Resolution is attested and issued under Digital Signature.
By the order and in the name of the Governor of Maharashtra,
Ramchandra Dhanawade – Digital Signature
[R.K.Dhanawade]
Deputy Secretary, Government of Maharashtra
To,
1] The Secretary to the Hon’ble Governor,
2] The Principal Secretary to the Hon’ble Chief Minister,
3] The Private Secretary to the Hon’ble Minister (Housing),
4] The Private Secretary to the Hon’ble Minister of State (Housing),
5] Hon’ble Leaders of Opposition in the Legislative Council/Legislative Assembly, Maharashtra Legislature Secretariat, Mumbai,
6] All Hon’ble Members of the Legislative Assembly/Legislative Council and Parliament,
7] The Personal Assistants to all Ministers/Ministers of State,
8] The Chief Secretary, Government of Maharashtra, Mantralaya, Mumbai,
9] The Additional Chief Secretary (Revenue), Department of Revenue, Mantralaya, Mumbai,
10] The Additional Chief Secretary (Finance), Department of Finance, Mantralaya, Mumbai,
11] The Private Secretary (UD-1), Department of Urban Development, Mantralaya, Mumbai,
12] The Principal Secretary (UD-2), Department of Urban Development, Mantralaya, Mumbai,
13] The Principal Secretary (Co-operation), Department of Co-operation and Textile, Mantralaya, Mumbai,
14] The Principal Secretary, Department of Rural Development, Mantralaya, Mumbai,
15] All Mantralaya Departments,
16] The Vice-President and Chief Executive Officer of the Maharashtra Housing and Area Development Authority, Bandra, Mumbai,
17] All Divisional Commissioners,
18] The Managing Director, CIDCO,
19] The Managing Director, Mumbai Metropolitan Region Development Authority,
20] All Municipal Commissioners,
21] All District Collectors,
22] All Chief Executive Officers, Zilla Parishads,
23] The Director, the State Co-operative Bank,
24] All District Deputy Registrars,
25] All Chief Officers, Municipalities /Municipal Councils,
26] All Deputy Secretaries in the Department of Housing, Mantralaya, Mumbai,
27] All Under Secretaries/Section Officers in the Department of Housing, Mantralaya, Mumbai,
28] Desk-DuVaPu-1, For Record.
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[Text Translated by Adv. Prakash Manohar Chalke
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