Maharashtra Launches Self-Redevelopment Authority to Empower Housing Societies
MUMBAI: In a significant decision, the Maharashtra government has constituted a Self-Redevelopment Authority to assist citizens in redeveloping their old buildings themselves, instead of handing them over to builders. This move is expected to give a substantial boost to the self-redevelopment of housing societies, particularly in Mumbai and the Mumbai Metropolitan Region (MMR).
BJP legislator Pravin Darekar, who also heads the Mumbai District Central Cooperative Bank, has been appointed president of the Authority. Darekar has been a strong advocate for the self-redevelopment of buildings through the bank for quite some time.
The decision comes four months after the New Housing Policy was approved by the state cabinet, which envisaged the formation of a dedicated cell to assist housing societies. The policy allocated a sum of ₹2,000 crore to support this initiative. “The authority will provide end-to-end support, including guidance on planning, funding, developer selection, and project execution, empowering societies to undertake redevelopment independently,” said a senior housing department official.
The order issued on Monday does not provide details about the exact functioning of the authority, except that Darekar has been accorded ministerial status with his new appointment. Another official stated that a second order would follow, which would include all the other details, such as the names of the members of the authority.
According to data from the real estate apex body CREDAI-MCHI, over 25,000 buildings across MMR are eligible for redevelopment, with an estimated project value of more than ₹30,000 crore.
In February, Chief Minister Devendra Fadnavis announced that the interest on premium for self-redevelopment projects would be waived until March 2026. In May, he announced plans to provide subsidized loans to housing societies interested in self-redevelopment. He also requested Union Cooperation Minister Amit Shah to see if the National Cooperative Development Corporation could assist in this effort.
Darekar also headed the study group appointed to ascertain the issues and difficulties in the self-redevelopment process. On July 14, he submitted the report to Fadnavis. The study group has recommended an additional 10% carpet area for housing societies and extending the scheme to cluster redevelopment. The minimum area required has been reduced to 2,000 square meters from the existing 4,000 square meters.
This initiative is expected to empower housing societies and reduce their dependency on external developers, thereby ensuring more control and benefits for the residents.
