Now, Godrej to redevelop old buildings

There is good news for old housing societies wary of redeveloping their premises on account of unscrupulous builders, reports Naresh Kamath.

There is good news for old housing societies wary of redeveloping their premises on account of unscrupulous builders.

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The Godrej Group, on Saturday, has announced its plans to revamp old structures.

Adi Godrej, chairman of Godrej Properties Limited, said: “We believe that a huge opportunity exists in this redevelopment sector and we are currently in negotiations with some societies.”

The redevelopment will be undertaken in the joint venture model, where the firm will tie up with the landlords, which in this case will be the society members.

In addition to societies, Godrej announced that the company was also open to undertaking cluster redevelopment scheme projects. In such projects, all properties in a minimum 1 acre area, is revamped and in return, the developer is offered extra Floor Space Index as an incentive.

Housing activists have welcomed the move saying the entry of corporates will bring professionalism in this field.

“Corporates should enter this field as this will ensure transparency and accountability which are non-existent,” said Ramesh Prabhu, chairman, Maharashtra Societies Welfare Association, which works on property-related issues.

“It makes sense to deal with corporates because they do not indulge in unwanted practices,” said Parimal Bhatt, a resident of Sujata Cooperative Housing society at Santacruz.

This move comes after the central government’s approval to relax the CRZ rules, which meant that no redevelopment was possible in 38 per cent of the city. “It is a practical decision taken by the government because CRZ makes no sense in a city where development has already taken place,” said Godrej.