Expert's take on real estate issues and queries faced by the citizens of Mumbai

DNA brings to its readers expert’s take, where experts from a variety of fields take questions and give ready answers to issues close to citizen’s heart. Our experts will take your questions and offer their expertise. Today we bring to you our expert’s take on real estate issues and queries faced by the citizens of Mumbai.

Our society in Santa Cruz (W)  has 22 flats and the building is almost 40-years-old. Although the building is not in a bad condition, we all members are inclined to go for re-development. Some members feel that we should go for self-redevelopment. How far it is advisable? 
—Dilip Das, Santa Cruz

Self-redevelopment process, as it stands today, is not so easy. The society does not have the expertise, infrastructure, contacts which the developer has. There are some challenges which the society will have to face and overcome, such as raising adequate funds for initial permissions for the project, purchase of Floor Space Index (FSI)/ Transferable Development Rights (TDR),  rent payment to members, ensure timely cash-flow from prospective home-buyers, proper sales/marketing strategy etc. The society will have to also engage an able contractor for the construction of the building. The society will also have to register its redevelopment project with MahaRERA, thereby taking responsibility of all statutory compliances. For doing all these things, the society will need an experienced Project Management Consultant (PMC). Since self-redevelopment being is a new phenomenon, there are very few agencies/ PMCs with proven track record in this field of self-redevelopment. 

However, recently the state government has offered numerous benefits to the societies to encourage self-redevelopment, vide its GR dated September 13, 2019.  These benefits include additional 10% extra FSI, TDR at 50% concessional rate, concessions in Premium payable and also installment facilities for payment of premium, waiver of LUC tax payment, concession in stamp duty on individual agreements, GST concessions and more importantly one-window clearance for various permissions. 

The major benefit the members can expect in self-redevelopment is much larger area than what the developer will offer the members in the new re-developed building. Members can also expect much more corpus amount. Moreover, the society will have full control over the execution of the project. Considering the concessions that are on the way, it is advisable to wait for three to six months for these concessions to actually materialise. Your society being small with only 22 members, self-redevelopment is perhaps the ideal model for you.

I often receive SMS and emails of some real estate projects offering flats in their projects. Many such communications do not have MahaRERA registration number. How do I know if these projects are registered with MahaRERA or not?
—Sheela Deolekar, Dadar

As per Section 3 of RERA Act, no promoter can advertise or offer for sale flats in his on-going or new real estate project without registering it with MahaRERA. You can, therefore, visit  MahaRERA website (maharera.mahaonline.gov.in) to see if such project is registered with MahaRERA or not. If such project is not registered, then you can complain to MahaRERA Secretary on his  email id: sourcedetails@maharera.mahaonline.gov.in. Please note that not registering the project with MahaRERA or even advertising the MahaRERA registered project without reflecting MahaRERA registration in any advertisement is a punishable offence and the promoter of such project can be heavily penalised for such lapses.