Mumbai District Central Cooperative Bank has approved Rs 52-cr loan for 8 societies, Rs 770 cr for 19 more.
The Mumbai District Central Cooperative Bank’s (MDCCB) self-redevelopment scheme for co-operative housing societies has elicited huge response.
So far, around 500 housing societies across Mumbai have shown interest in redeveloping their own buildings without the involvement of builders.
The MDCCB has sanctioned loans worth Rs 52 crore to eight housing societies, out of which four have started work. Redevelopment of two societies is at an advance stage of completion. Loans worth Rs 770 crore have been pre-sanctioned for 19 societies.
Speaking to Mirror, the bank’s chairman and BJP MLC Pravin Darekar said, “Thousands of redevelopment projects across Mumbai are stranded for various reasons. The builders promise to undertake redevelopment in two-three years, but the projects drag on for five to seven years and in some cases, for more than a decade. This prompted us to tailor such a self-help scheme for housing societies.” He added that under this scheme, the bank disburses 90 per cent of the project cost as loan. “We not only provide loan, but also hand-hold these societies in obtaining permits from the BMC, MHADA, MMRDA, environment ministry and other government departments,” Darekar said.
The MDCCB has a special cell and panel of experts and contractors, who give professional advice to the societies. “But the societies are free to choose any architect or contractor,” he added.
Ajit Thakur, secretary of the Ajitkumar co-operative housing society in Goregaon, said, “We were trying to rope in a builder redevelopment for almost three years. But as our complex’s plot is small — merely 525 sqm — builders were not interested. That prompted us to start exploring the option of self-redevelopment.”
The society members are happy that they will not only get new and bigger flats, but will also be able to pocket some profit once redevelopment is over.
“Our society has 12 members and all of us are getting 25 per cent extra area in redevelopment. On top of that, the society will get 12 more flats or an area of around 5,500 sqft for sale. This is our profit,” Thakur explained.
Shirish Deshpande, chairman of consumer rights group Mumbai Grahak Panchyat, urged the state government to promote this scheme.
“It will help bring down the prices of flats in Mumbai. The housing societies will not be as greedy as builders while selling their sale component flats. If self-redevelopment happens on a massive scale, then the builders will have to bring down the prices of flats as well.”
Sitaram Rane, president of the Maharashtra State Cooperative Housing Societies Federation, said, “The self-redevelopment will rekindle the spirit of cooperativism and help the members most while eliminating middlemen like builders, who pocket huge profits in such projects.”
There are around 33,000 housing societies in Mumbai, most of which were built in the 60s, 70s and 80s and are in dire need of redevelopment.