Hsg societies built from ’49 for backward classes to be redeveloped under open category

The government’s resolution (GR), issued on May 31, has removed a condition mandating that 90% occupants in such societies be from the backward classes. In Mumbai alone, there are close to 30 housing societies that are located in prime areas such as Bandra, Andheri, Ghatkopar and Vikhroli

Mumbai: The Maharashtra government has announced a new scheme for the redevelopment of old and dilapidated buildings which were originally built from 1949 under Post War Rehabilitation (PWR) 219 scheme.

HT Image

The government’s resolution (GR), issued on May 31, has removed a condition mandating that 90% occupants in such societies be from the backward classes. In Mumbai alone, there are close to 30 housing societies that are located in prime areas such as Bandra, Andheri, Ghatkopar and Vikhroli.

The Eknath Shinde-led government has decided to reduce the reservation quota for the backward classes from 90% to 20% in such buildings following redevelopment. Up to 80% flats can be sold in the open market after they are reconstructed, says a government resolution issued by the social justice and special assistance department.

The Post War Rehabilitation—219 scheme was created in 1949 to resolve the issue of shelter for backward classes in the immediate aftermath of the Partition. The government of the day provided families from backward communities plots and financial assistance to construct residential buildings on those plots.

To ensure that this scheme was not misused by the non-backward classes, the government imposed several conditions, among which was the 90% reservation, said a senior official from the social justice and special assistance department. However, over the decades as the country’s social and economic situation changed and the buildings aged and fell into disrepair, this one criterion became an impediment in their redevelopment. Most private builders stayed away citing lack of financial viability. A substantial number of flats needed to be sold in the open market to finance reconstruction of the buildings.

In 2012, one of these societies, Dinanath Cooperative Housing Society at Four Bungalows, Andheri, approached the Bombay high court for redevelopment. On December 8, 2016, the court struck down the social justice department’s condition mandating that 90% of the members be from backward categories even after redevelopment. It also permitted that 80% of occupants in the sale component can be open category and the remaining 20% from backward classes.

Of the total 813 housing societies constructed under Post-War Rehabilitation—219 schemes, 414 are located in urban areas and the remaining 399 societies are in Maharashtra’s rural areas.

In the May 16 cabinet note, the social justice department admitted that the societies are in dilapidated condition and thus their redevelopment is necessary. There was no policy that would otherwise allow for their renewal.