Here are some common questions about Society Self Redevelopment

1. How much extra area will each member get?

Depending on the project feasibility, the extra area will be offered to each member. Thus additional areas offered may differ from project to project.

2. What will be the corpus amount and how will it be distributed?

In self-redevelopment, the project gains profit which is distributed equally amongst all the society members.

3. When does the Bank sanction & disburse the loan?

Mumbai bank will sanction and disburse the loan on 1 FSI IOD/IOA.

4. How much loan is given by the bank and how much is the interest rate?

The bank sanctions up to 95% loan of the project cost at 8.5% simple interest per Annum.

5. What is included in project cost?

The project cost is the total cost required to complete the self-redevelopment project successfully. It shall include construction cost, professional fees, TDR purchase cost at MCGM/MHADA, TDR cost from open market, MCGM/MHADA Premiums payable for development as per the Development Control Regulations, Cost to get Building Approvals, Rent to Members, Shifting Charges to Members, Interest Cost, Cost of Site Management and other miscellaneous costs related to the project.

6. How much is the processing fees?

1% is the processing fee.

7. Is there any pre-payment charges, if the society repays the loan before its tenure?

No. There are no prepayment charges.

8. If the society does not avail or utilize the entire sanctioned loan amount, then does bank charges any commitment charges for the unused limit?

No. Bank does not charge any commitment charges.

9. No bank gives loan without collateral security, so what collateral security society has to give?

Bank gives the loan on the mortgage of the society’s land and lien on proposed sale flats. Society or its members do not have to give any collateral security other than these mentioned above.

10. How will the society repay the loan?

Society will repay the loan from sale of additional flats in the project.

11. Do the flats of any society member gets mortgaged?

There will be no mortgage on the flats of any existing members.

12. Does individual member have to give personal guarantee?

There will be no personal guarantee of any individual member.

13. Will society managing committee be held responsible for any decision?

Society managing committee will not be held responsible as they will have to work only as per the resolutions passed by the General Body.

14. What kind of services does WSPL offer for Self-Redevelopment?

WSPL is a group of professional. It undertakes a turnkey project and provides professional services from start to end required for the redevelopment project such as architect, engineers, approvals, legal, Chartered accountant, PMC for society management, liaison for funding and even sales & marketing.

15. That means society do not have to do any work and all profit of the project will go to the society?

Yes, WSPL will take all their redevelopment work’s responsibility and the profits of the project shall remain with the society only.

16. Who will pay the rent/shifting charges?

It will be covered in the project costs. Bank will transfer the rent to their respective account opened in Mumbai Bank

17. Who will get the approvals from MHADA/ MCGM and will bank pay for the approval costs?

WSPL in-house team will get all the approvals for the society. Society members will not have to approach any department for approvals. The loan from bank will cover all the costs of the project excluding initial approval costs of 1 FSI IOD/IOA.

18. Who will design the plans for the society’s proposed building?

WSPL have a team of designing architects & professionals headed by our director, Mr. Vijay S Prabhu and Mr. Lalit Desai instrumental in and developed more than 35 projects so far.

19. Who will manage account writing and taxation?

Our in-house Chartered Accountant & it’s team will manage account writing and taxation.

20. Who will guide us on legal and documentations part?

WSPL has an in-house team of advocates to guide in all aspects from conveyance to co-operative matters to all legal documents related to redevelopment.

21. Our society does not have conveyance, can WSPL assists in obtaining Unilateral Deemed Conveyance?

WSPL in-house team will obtain the unilateral deemed conveyance in favour of the society.

22. What will happen to the project in case of delays?

Delays happen due to financial or approval problems, as in self-redevelopment all approvals will be in place before vacating flats and the loan is approved by the bank, there will be no cause for delays.

23. How quality will be monitored?

WSPL in-house team of site engineers & Architects will ensure quality work from the contractors and in casework is not up to the standards their contracts can be terminated. In addition to it WSPL suggests to appoint one independent Project management consultants who shall directly report to Society as per the progress of the work in BAR CHART.

24. Will the project be insured?

The project will have full construction insurance.

25. What will be the loan period?

The loan period will be 7 years for a loan up to 50 crs and 10 years for a loan more than 50 crs.

26. How much is the moratorium period?

Moratorium period is of 2 yrs for loan upto 50Cr and 3 yrs for Loan more than 50Cr. However, at the end of 2 years’ interest component of two years shall have to be paid at one. Once the arrears of interest is paid, the bank will determine the amount of installments to be paid.

27. Who will be responsible for the sale of flats?

WSPL shall take the complete responsibility of sales and undertakes to repay the loan taken by Society for project if society gives consent to it.

28. What will happen if society fails to make any sales?

Firstly, WSPL has in house expertise to sell the flats as there will fewer flats available for sale. Secondly, we have a sales and marketing team who will get the research of the market about the demand and supply in neighborhood areas. In the worst scenario, Bank will take over the new inventory.

29. How long will it take to complete the project?

This will depend on the type of project.

30. How project payments will be released?

Payments will be released as per the requirement of the project and approval from the MMDC Bank, nodal agency and PMC.

31. If members would like to buy extra area, what will be the cost of it?

Existing members can purchase extra area at project cost and nominal profit.

32. How much each member can buy extra area?

This can be decided as per the general body.

33. Will we get any assistance for appointing Contractor?

Since WSPL is taking complete responsibilities on a turnkey basis, society needs not worry about the same.

34. What is a benefit to society to get all professionals under one roof?

Society will have to keep one-point contact. If society appoints agency with all professionals under one roof, then the responsibility of the work is only on one company. The society shall get all the answers under one roof and covers up their lack of knowledge in all technical, government, commercial departments.

35. Who will design our project as a Structural engineer?

Our in-house Director, Lalit Desai & associates Consultants who have done the structural design of several landmarks. He will do the complete structural designing and engineering for the project.

36. Do we have to pay stamp duty on Development agreement?

There is no development agreement as society members are the owner and no transfer of rights takes places hence, stamp duty is not required to be paid.

37. Can existing members get flats on Upper floors?

Yes, as the society is a part of design decisions, they can take upper floors and keep the sale area on lower floors.

38. Our society has already entered into a development agreement with X developer, now the developer is not ready to deliver, can we do self -redevelopment?

Yes, the project cost will be considered for the remaining part of the project and accordingly, the loan will be sanctioned to complete the whole project. The existing development agreement should be terminated with no litigation and society should pass a resolution for self-redevelopment with 100% consent.

39. Can we terminate our present Development Agreement for self -redevelopment?


40. What if we sale our flats before project completion and we do not need to take full Loan from Bank?

This will decrease the expenditure thereby reducing the loan cost and increasing profit for the society members.

41. Is WSPL an international company having sound balance sheet?

WSPL has been formed by a group of professionals to provide all services under one roof.

42. Has WSPL worked with renowned construction companies such as L&T, Samsung, Piramal, etc? Will they work in our small size redevelopment project?

Our directors in their individual capacity have been consultants to renowned construction companies including L&T. But such big construction companies do not take smaller redevelopment projects.

43. Then in such case how we will get good contractors?

There are many good contractors who are doing redevelopment projects. Moreover WSPL is taking the complete responsibilities of a project of quality work in the scheduled period.

44. Will international architect be helpful in our small-sized redevelopment project? Do they charge reasonable?

As per the current scenario, reducing the premium cost is the most important factor of redevelopment, which Mumbai based architect who has worked for developers can understand better the needs of the common man than the international fame architects firm. Secondly, their fees will not be feasible for smaller redevelopment projects.

45. Will international PMC be helpful in our small-sized redevelopment project? Do they understand Mumbai redevelopment projects?

As society is doing Self-Redevelopment they have to think like a developer now. International brand PMC, whose balance sheet may be huge due to international turnover but for common man, the question will be that, do they have experience in redevelopment and have they worked in a smaller size redevelopment project in Mumbai.