Mumbai's housing society redevelopment faces new complications

Mumbai's ambitious endeavour to rehabilitate outdated buildings on collector lands has encountered a fresh set of complications. This directly impacts the 8,000 housing societies constructed half a century ago, causing further delays in their overhaul.

This issue arises from a new mandate by the state government's Social Justice Department. The directive stipulates that, aside from the 90% backward class occupancy in the existing structures, there must also be a 20% membership of Other Backward Classes (OBCs) in the new flats developed as part of the renovation.

Vijay Patel, a proponent of the cooperative housing societies movement, explains that the government will determine the premium paid by the 20% OBC members in the revamped section of the building. This proviso was proposed under the post-war rehabilitation-219 scheme, aimed at aiding the backward class. Patel voiced concerns that such conditions may hamper the much-needed redevelopment of ageing structures, presently housing around 800,000 families.

Vikramaditya Dhamdhere, general secretary of the Federation of Grantees of Government Lands, echoed Patel's apprehensions. Dhamdhere stated, "The new stipulations make redevelopment a Herculean task due to the financial and administrative burden they impose on developers. In the event of a building collapse, the government will be entirely accountable for any fatalities."

Housing societies are already battling to reduce the premium from 15% to 5% of the Ready Reckoner rates. This reduction is necessary for members to secure land ownership and subsequently gain permission for redevelopment. In light of the ongoing challenges, societies are threatening to cast a 'None of the Above' vote in the forthcoming elections.

Federation President Salil Rameshchandra pointed out another issue where individual residents, rather than the Cooperative Housing Societies (CHS), hold the lease. In such instances, the premium shoots up to 25%. Additionally, Rameshchandra warns that the charges for land conversion into ownership are set to triple as the current rates expire in March 2024.

In conclusion, the latest government regulations pose significant roadblocks to Mumbai's redevelopment plans. The new rules have led to increased financial strain and administrative complexity, jeopardizing the safety and security of approximately 800,000 families residing in these ageing buildings. A solution to this impasse is urgently needed to ensure that the city's urban regeneration proceeds smoothly and without further delay.

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Mumbai's housing society redevelopment faces new complications

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