A 22-flat cooperative housing society near Shivaji Park, Dadar West. Built in 1968. Structurally aging. Committee members have been in discussions with builders for six years — each promising ₹80 lakh corpus and a new 2 BHK. Every negotiation stalled. Meanwhile, societies that took the self-redevelopment route kept 100% of the surplus. Property Butler advises Dadar West committees on this decision regularly. Here is what we tell them.
Self-Redevelopment vs Conventional Redevelopment
In conventional redevelopment, the builder takes the land, builds, sells surplus, and pays the society a corpus. The builder keeps 60–75% of the surplus value. In self-redevelopment, the society is the developer — borrows from a bank, appoints a PMC and architect, constructs, sells the surplus, and keeps 100%.
The Dadar West Land Value Equation
A 10,000 sqft plot near Shivaji Park with 3.0 FSI = 30,000 sqft buildable. A 30-flat society with 400 sqft existing carpet per flat = 12,000 sqft used. Surplus = 18,000 sqft. Property Butler tracks The Palette by Suraj Estate at ₹75,000+/sqft for sea-view; EIRENE at ₹48,000/sqft for mid-2027 delivery. Even at ₹32,000/sqft, 18,000 sqft surplus = ₹57.6 Cr. Divided by 30 members = ₹1.92 Cr per member — plus a brand-new, larger apartment. A developer offering ₹80 lakh corpus (₹24 Cr total) for that ₹57.6 Cr surplus is taking ₹33.6 Cr that belongs to the society.
SBI Self-Redevelopment Financing (2026)
80% of Project Cost
8.75–9.5% interest · Government-backed MOU · Repaid from surplus flat sales
Maharashtra Self-Redevelopment Policy — Key Provisions
- Eligible societies: Any registered CHS with C1/C2 building OR any building older than 30 years by 2/3 vote
- Resolution threshold: 2/3rd of ALL members (not just present) at a Special General Meeting
- RERA registration: Mandatory before selling surplus flats — society registers as developer
- SBI MOU: Maharashtra Government 2021 amendment — SBI finances 80% of project cost at 8.75–9.5%
- PMC: Professionally qualified Project Management Consultant is mandatory
- Timeline: 3.5–5 years from resolution to final possession
Self-Redevelopment vs Developer-Driven: The Comparison
The 8-Step Process
Step 1 — Feasibility Study (Month 1–2): Structural engineer + architect assess FSI potential and surplus area. Cost: ₹2–5 lakh. Establishes financial viability before significant spend.
Step 2 — Society Resolution (Month 2–3): Special General Meeting — 2/3rd of ALL members must vote yes. A 34% minority blocks proceedings. This is the most common failure point.
Step 3 — PMC Appointment (Month 3–4): Shortlist 3 PMCs. Fee: 5–8% of project cost. Insist on a PMC independent from the contractor — conflict of interest kills oversight.
Step 4 — RERA Registration (Month 4–6): Architect finalises plans, BMC approval, and RERA registration as self-developer. Mandatory before any surplus flat bookings.
Step 5 — SBI Financing (Month 5–8): Apply under Maharashtra-SBI MOU. 80% of project cost sanctioned. Requires: society documents, architect's report, feasibility study, RERA certificate.
Step 6 — Transit Accommodation (Month 8–12): All members vacate. Society pays ₹20,000–50,000/month rent allowance per flat for 3.5–4 years.
Step 7 — Construction (Months 12–54): PMC manages contractor, monthly MIS, RERA milestone compliance.
Step 8 — Surplus Sale (Months 24–48): Once RERA-registered and slab 5–7 complete, society sells surplus flats. Proceeds repay SBI loan.
Worked Example: 22-Flat Society Near Shivaji Park
22-flat society, 8,000 sqft plot. Existing: 450 sqft carpet average = 9,900 sqft total. FSI 3.0 = 24,000 sqft buildable. New member flats: 22 × 600 sqft = 13,200 sqft. Surplus: 10,800 sqft at ₹35,000/sqft = ₹37.8 Cr gross. Construction: ₹5,500/sqft × 24,000 sqft = ₹13.2 Cr. PMC 6%: ₹2.3 Cr. Transit: 22 × ₹30,000 × 48 months = ₹3.2 Cr. Legal/RERA: ₹1.5 Cr. Total cost: ₹20.2 Cr. Net surplus: ₹17.6 Cr ÷ 22 = ₹80 lakh per member + new 600 sqft flat (vs developer offering ₹60–80 lakh + same-size flat).
Critical PMC Red Flag
A PMC that offers to connect you with their "preferred contractor" signals a conflict of interest. If the project manager and the builder are aligned, the society loses its primary oversight mechanism. Insist on a PMC with no commercial relationship with your eventual contractor.
When Self-Redevelopment Fails
Self-redevelopment fails when: (1) fewer than 2/3 of ALL members agree — 8 dissenting members in a 22-flat society can block it; (2) plot under 5,000 sqft — surplus too small for complexity; (3) committee lacks 10+ hours/month of management capacity for 4 years; (4) disputed title — no bank lends on disputed land; (5) FSI already consumed by unauthorised construction.
Frequently Asked Questions
Does a CHS society need a developer's NOC to self-redevelop?
No. A registered CHS society that owns its land can proceed with self-redevelopment without any developer's approval. Clean title documentation and 2/3rd member majority are the key requirements under Maharashtra law.
What is the SBI self-redevelopment loan rate in 2026?
SBI Housing Finance offers project loans at 8.75–9.5% floating (linked to repo rate) under the Maharashtra Government MOU. Financing covers up to 80% of total project cost. Repayment is from surplus flat sale proceeds.
How long does self-redevelopment take in Dadar West?
Realistically 4–5 years: 6–8 months for approvals and financing, 36–42 months for construction, 6–12 months for surplus sales and loan repayment.
Can a structurally sound building self-redevelop (not dilapidated)?
Yes. Under Maharashtra's 2019 policy, any CHS building built before 1990 can opt for self-redevelopment with a 2/3 majority vote, regardless of structural condition. The logic is purely FSI unlock and value creation.
What PMC fee is reasonable for Dadar West self-redevelopment?
Market rate: 5–8% of total project cost. For a ₹20 Cr project, that's ₹1–1.6 Cr. Avoid PMCs offering significantly below 5% — they typically recover the shortfall through preferred-contractor referral fees. Get 3 proposals and compare scope line by line.
Property Butler Can Help Your Society Evaluate Self-Redevelopment
We run initial feasibility assessments for Dadar West CHS committees — FSI calculation, comparable surplus pricing, and PMC introductions. No obligation, no builder pressure.
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