In a significant move to empower cooperative housing societies and accelerate self-redevelopment across Maharashtra, Chief Minister Devendra Fadnavis on Monday revealed that the state government is actively pursuing concessional loans support from the National Cooperative Development Corporation (NCDC). The announcement was made at a high-level seminar on cooperative sector challenges held at the YB Chavan Centre in Mumbai.
Empowering Societies for Self-Redevelopment
Highlighting the obstacles that housing societies face due to prolonged delays by developers and issues such as non-payment of monthly rent to displaced residents, Fadnavis said, “We are trying to free housing societies from the claws of builders who have been delaying redevelopment projects.” He emphasized the need for self-redevelopment and indicated that concessional financing would make this a viable alternative for thousands of societies.
The state has already introduced a self-redevelopment scheme with seventeen different concessions, making it easier for cooperative housing societies to undertake the process themselves. However, financing remains a major hurdle — something the government now seeks to address by partnering with central agencies.
While the NCDC’s jurisdiction was previously limited to rural areas, discussions with Union Cooperation Minister Amit Shah have opened up the possibility of expanding its scope to urban cooperative housing societies. A formal decision from the Centre on this proposal is expected soon. If implemented, societies would be able to obtain long-term, low-interest loans directly from the NCDC, bypassing traditional lenders or dependence on private developers.
Reforming the Maharashtra Cooperative Societies Act (MCSA)
Fadnavis also criticized the outdated nature of the Maharashtra Cooperative Societies Act, noting that it treats diverse cooperative entities — from sugar mills to housing societies — under the same legal framework. “The act is good, but it has become old. New provisions need to be incorporated to deal with new challenges,” he stated.
He announced the formation of a committee to review the MCSA and suggest amendments to make it more dynamic and inclusive for modern cooperative needs.
Strengthening Cooperative Institutions
A second committee will be set up to devise strategies to strengthen existing cooperative bodies. The state also intends to facilitate financial transactions with cooperative banks, offering them a much-needed boost.
Conclusion
The state’s push for NCDC-backed loans and reforms in cooperative legislation could mark a transformative moment for Maharashtra’s housing sector. If successful, cooperative housing societies will gain the financial strength and legal flexibility to take control of their redevelopment, cutting dependence on erratic developers and reviving the cooperative movement that once defined the state’s economy.
