Pune’s State commissioner of cooperation and registrar of cooperative societies Deepak Tawre has allowed cooperative banks to provide loans to housing societies to undertake self-redevelopment. Previously, housing societies could not undertake self-redevelopment due to unavailability of loans. The directive, issued, is expected to benefit nearly 1,000 redevelopment proposals across, primarily in Mumbai, Thane and Pune.
The order specifies that banks should sanction loans after due diligence, including funds availability and document verification. Banks must also adhere to RBI guidelines and ensure that there is no double financing.
The move is particularly significant for older housing societies. The Maharashtra State Cooperative Banks had previously announced loans for old housing societies planning self-redevelopment and even made allocations for the financial year. However, the initiative was stalled due to lack of clear guidelines from the RBI.
