Self Redevelopment


Self-Redevelopment is a DIY (Do It Yourself) style of redevelopment of housing society where the society members take up the onus of redevelopment of their society in their own hands.

Maharashtra Government, on September 13, 2019, issued a Government Resolution (GR), which provides several concessions for self-redevelopment of housing societies. We look at the salient features of this GR

In cities like Mumbai, land is very scarce but the demand for housing is growing continuously. Moreover, some of the buildings in Mumbai and in other cities, have outlived their useful life and pose a risk to the lives of the residents. In order to cater to the increased demand for housing, with the added objective of replacing the old buildings, the government has been promoting and regulating the redevelopment of existing properties.


The Redevelopment of old buildings has drastically changed the face of Mumbai, in the last 25 years. The traditional practice, is for Redevelopment to be done through a developer, where the benefits of the additional floor space index (FSI) accruing to the building, do not pass on to the members of the society. Moreover, many buildings that went for Redevelopment have been abandoned midway by the builders, leaving the original flat owners stranded.

In order to ensure that the flat owners get the benefits of increased FSI and to let them have their say in the Redevelopment of the building, the cabinet of the government of Maharashtra, set up an expert committee on March 8, 2019, to examine the issue and give recommendations for self-redevelopment of buildings by the housing societies in the state of Maharashtra. A Government Resolution (GR) dated September 13, 2019, was issued, to implement the suggestions of the high-level committee.

Taking up self-redevelopment of a housing society not only keeps the members safe from any problems arising from the builder but also has several other benefits. However, there is a procedure for self-redevelopment which has to be followed correctly if a housing society wants to opt for self-redevelopment and avail all the benefits of self-redevelopment.

Process and Procedure for Self Redevelopment

The checklist for starting a self-redevelopment project starts with having the Society should be a registered society situated on a government/semi-govt./private land and then the first thing to acquire is the consent of all the society members and resolutions for self-redevelopment. Once consent is in place, the actual process starts, which includes the following:

Advantages of Self-Redevelopment

  • There are various advantages of self-redevelopment as against opting for builder-led redevelopment.
  • In a self-redevelopment project, the society members have control over the project where they can decide on plans, designs and also setting development standards. The society members can also decide the amenities they want to have in the self-redeveloped society like parking spaces, play area for children etc.
  • The surplus created by selling off extra flats is also higher as no part of it has to be shared with the builder.
  • The funding from Mumbai District Central Co-operative Bank Ltd(Mumbai Bank) or any other co-operative banks, also helps in managing the construction of the society.
  • The most important advantage of self-redevelopment is that during this entire process, all the documentation and plans are in society’s name, i.e. the property rights are with the society.

Disadvantages of Self-Redevelopment

Self-Redevelopment has its own set of challenges that need to be considered before making the final decision.

  • Time, competence and inclination within the society members to manage a big self-redevelopment project.
  • Getting consensus amongst members at the beginning and then at various stages of the project.
  • Managing documentation through Government authorities.
  • Arranging for the society’s part of the finance and making funds available for the entire project through bank finance.
  • Managing multiple experts at various intervals of time and the required coordination within them.
  • Ability to sell the saleable flats for recovering the project cost.
  • Managing the invoicing, taxation and cost accounting of the project.
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