CM Announces 8.5% Interest Waiver on Self-Redevelopment Premium in Mumbai

Chief Minister Devendra Fadnavis has announced an 8.5% interest waiver on the premium for self-redevelopment projects in Mumbai. This waiver applies to projects that submit proposals by March 2026.

The Brihanmumbai Municipal Corporation (BMC) currently charges an 8.5% interest on premiums paid in installments for self-redevelopment. Addressing a gathering in Kandivli, where he inaugurated a self-redeveloped residential building, Fadnavis acknowledged concerns raised by residents regarding this financial burden.

Key Highlights of the Announcement:

1. The premium must be paid upfront, while construction typically begins 2-3 years later.

2. Residents face dual financial strain—bank interest and BMC's premium interest.

3. To reduce this burden, the interest on premium will be waived for three years, ensuring that the scheme is not misused.

4. Projects are expected to be completed within five years.

Current Status of Self-Redevelopment Projects

Fadnavis revealed that 1,500 self-redevelopment proposals have been submitted so far. However, MHADA (Maharashtra Housing and Area Development Authority) has received only 45 proposals, of which 42 have been approved.

Right to Services Act for Faster Approvals

To streamline self-redevelopment, the CM announced that the scheme would be brought under the Right to Services Act, ensuring:

1. Faster approvals

2. Minimal bureaucratic delays

3. Zero human intervention in the approval process

The interest waiver is expected to boost self-redevelopment in Mumbai, making it more financially viable for residents while reducing reliance on brokers and developers.

By LNN (Liyaans News Network)