Will This Move By The State Government to Tackle Delayed Rehabilitation Projects in Maharashtra Be a Masterstroke?

This is surely one of the biggest moves in the history of Maharashtra real estate industry specifically for delayed rehabilitation projects and this could potentially resolve a lot of issues for various stakeholders including property buyers, mainly.

The Maharashtra state government has launched a substantial endeavour to address the issues preventing delayed rehabilitation projects. All essential permissions will be given within three months using a single-window certification system, and these projects will be completed by self-regulation procedures. Additionally, the process for acquiring bank funding will be simplified.

According to Ramesh Prabhu, Chairman of MahaSewa, there are now 4,500 blocked rehabilitation schemes. The state administration has provided incentives for such ventures after seeing the need for a different approach. This involves the development of a single-window clearing system and a 4% interest subsidy for borrowing. The procedure would be facilitated by a nodal person appointed by each planning authority, and any disputes between housing societies will be resolved by a separate grievance cell. Notably, there would be a reduction in the stamp duty rate for self-development and renovation of units to Rs 100.

The state government has also suggested 4% in interest subsidies for the programmes. District banks, including the Maharashtra State Cooperative Bank, have been given permission by the Reserve Bank of India (RBI) to allocate up to 5% of their lending capacity to self-development projects. A significant game-changer is the implementation of a single window clearance system, which mandates that nodal officials approve projects within three months after eliminating any barriers.

Developers will submit ideas early in the procedure as a consequence of this effort, and housing organisations will quicken approvals and financing. These measures' beneficial benefits are strengthened by the introduction of a grievance cell and the potential for an interest subsidy.