Maharashtra Pushes Self-Redevelopment For Housing Societies With Big Concessions

Government aims to cut out builders, empower societies with faster approvals, tax relief, and easier financing

The Government of Maharashtra has announced a significant policy shift aimed at empowering cooperative housing societies to undertake self-redevelopment instead of relying on private developers. The resolution, issued on 8 March 2019, outlines a set of concessions designed to make self-redevelopment faster, cheaper, and more transparent.

Why the policy was needed

Traditionally, redevelopment of old and dilapidated buildings in Mumbai and across the state has been handled by private developers. While this model brought in capital and construction expertise, it often resulted in imbalances of benefit: developers gained from increased FSI and saleable area, while society members were left with limited advantages.

Frequent delays, abandoned projects, and failure to pay transit rent pushed thousands of families into uncertainty. Many buyers who invested in flats under such redevelopment projects also faced financial distress when homes were not delivered on time.

The government now believes that self-redevelopment, where societies themselves control the project, offers a solution that keeps benefits directly with members and ensures accountability.

Key concessions under the new policy

The GR lays out several strong incentives for housing societies choosing self-redevelopment:

1. Single-Window Clearance:
   All required permissions will be processed under one roof within six months.
   
2. FSI & TDR Benefits:
   Concessions in FSI (Floor Space Index) premiums, additional FSI charges, and TDR (Transfer of Development Rights) will be made available.
   
3. Tax & Fee Relief:
   Societies will get relaxations in stamp duty, GST, LUC tax, and open space deficiency tax.
   
4. Financial Support:
   Special guidelines will be framed to allow easy loan access from banks and financial institutions.
   
5. Time-bound Completion:
   Societies must complete the redevelopment within three years to avail these benefits.
   

Oversight and monitoring

To ensure smooth implementation, the government has formed a High-Level Committee comprising senior bureaucrats from Housing, Revenue, Urban Development, and Cooperation departments, along with two independent experts. This committee will finalize the scale of concessions, monitor projects, and submit recommendations to the government every three months.

Impact on housing societies

The decision is expected to transform the housing landscape in Mumbai and other urban centers where thousands of cooperative societies are struggling with redevelopment. By cutting out private builders and giving societies direct control, the policy ensures that financial savings and extra FSI benefits flow back to members.

Moreover, the move strengthens the cooperative housing movement in Maharashtra, which has long been considered a backbone of urban middle-class housing.

Looking ahead

While the policy is ambitious, experts note that successful self-redevelopment will require societies to build professional capacity in project management, finance, and construction oversight. The government’s promised banking support and faster clearances will be critical in determining how many societies adopt this model in the coming years.If executed well, Maharashtra’s push for self-redevelopment could serve as a national model for participatory, member-driven housing renewal.