Approximately 150 housing societies in Pune, Mumbai, and Thane have received loans from cooperative banks for self-redevelopment. These housing societies could not carry out self-redevelopment work due to a lack of money. “The loans will now benefit the housing societies,” Deepak Taware, the state commissioner of cooperation and registrar of cooperative housing organisations, stated on Thursday.
Taware issued a decree in June authorising cooperative banks to make loans to housing societies for self-redevelopment. Previously, housing societies could not pursue self-redevelopment due to a lack of loans. The rule required banks to grant loans only after undertaking due diligence, which included document verification and fund availability. Banks must also follow RBI norms and avoid double funding.
According to a cooperation department official, the ruling would assist roughly 1,000 redevelopment initiatives around the state.
Suhas Patwardhan, vice president of the State Housing Federation, told TOI that the directive has helped several housing societies in metro cities. He stated that appropriate finances should be allocated for this project. He also stated that the state government had reprinted the 2019 circular, which included a single window system, a 4% interest subsidy, an additional 10% FSI, and TDR incentives for the self-redevelopment of cooperative housing societies.
The move is especially noteworthy for older housing societies. A 37-year-old housing society in Mumbai recently experienced a year-long delay only to obtain the necessary licenses for self-redevelopment. “The entire process relies significantly on finance. “Bank loans are a vital lifeline for old societies,” stated a senior member of the state housing federation.
The Maharashtra State Cooperative Banks had previously announced loans for existing housing societies contemplating self-redevelopment and even allocated funds for the fiscal year. However, the program stagnated due to a lack of clear directives from the RBI.
Source: The Times of India
