In a move to encourage self-redevelopment among housing societies, Maharashtra Chief Minister Devendra Fadnavis has announced a waiver on the interest charged for paying premiums over three years. This initiative, effective until March 2026, aims to alleviate the financial burden on societies opting for self-redevelopment in Mumbai and other regions of the state.
Relief for Housing Societies
Traditionally, the state government levies a premium of 5% of the ready reckoner value on housing societies undertaking self-redevelopment on government-leased lands. Societies have the option to pay this premium over a span of three years, but an additional interest rate of 8.5% was imposed on the total amount. This dual interest obligation—one for bank loans and another for the premium—posed a significant financial strain on these societies.
Addressing this concern, CM Fadnavis stated, “To mitigate the financial challenges faced by housing societies, we are waiving the interest on premiums payable over three years for self-redevelopment projects until March 2026.” This decision is poised to make self-redevelopment a more viable and attractive option for many societies.
Encouraging Timely Project Completion
While the waiver provides substantial relief, it comes with a timeframe to ensure projects are completed without unnecessary delays. CM Fadnavis emphasized that the waiver is currently set until March 2026, and its extension will depend on the response and timely execution of projects by the societies. “We cannot extend this waiver beyond three years to prevent projects from dragging on indefinitely, as has been the case with some builders,” he added.
Additional Support Measures
Beyond the interest waiver, the Maharashtra government is implementing several measures to further support self-redevelopment initiatives:
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Single-Window Clearance System: To expedite approvals and reduce bureaucratic hurdles, a single-window system for clearances of self-redevelopment projects is being established. This system aims to streamline the approval process, enabling societies to commence and complete redevelopment projects more efficiently.
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Financial Assistance: Recognizing the financial challenges inherent in redevelopment projects, the government is collaborating with cooperative banks to facilitate funding. The government has appointed the Maharashtra State Cooperative Bank (MSCB) as the nodal agency to provide financial guidance and support to societies embarking on self-redevelopment.
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Stamp Duty Concessions: In a bid to reduce the financial burden further, the government has announced that societies opting for self-redevelopment will incur a nominal stamp duty fee of ₹100 during the allotment of flats in the newly constructed buildings.
A Strategic Move for Urban Renewal
This series of initiatives underscores the Maharashtra government’s commitment to empowering housing societies to take charge of their redevelopment projects. By removing financial and procedural obstacles, the state aims to rejuvenate aging infrastructure, enhance living conditions, and address the housing needs of its urban population.
The success of these measures will largely depend on the proactive participation of housing societies and their adherence to project timelines. As the March 2026 deadline approaches, it remains imperative for societies to capitalize on these incentives to ensure the timely and efficient completion of self-redevelopment projects.
