Housing Board Redevelopment: The Big Question No One’s Answering!

A financial grey area is casting a shadow over Gujarat’s Housing Board Redevelopment boom. With no written policy on liability, residents fear they could be in soup if developers default on loans—despite reassurances from the authorities

Housing Board Redevelopment: The Big Question No One’s Answering!

The skyline of Gujarat is rapidly changing! Reason: Redevelopment of Housing Board societies in full swing across the state. In Ahmedabad alone, 27 projects are currently underway. But along with the construction cranes, concerns are rising around a pressing financial question: If a developer defaults on a loan, who ends up bearing the burden?

Uncertainty Over Loan Failure Fuels Residents' Fears

A significant point of contention among residents is the lack of explicit mention in the existing redevelopment policy regarding who would bear the financial burden if a developer fails to repay loans taken for a project. Residents' unions fear that the original members of these housing societies, who have already paid for their homes, could be held responsible for the developer’s mismanagement. However, the Housing Board insists otherwise. Dinesh Barde, President of the Gujarat Housing Society, articulated these concerns to The Secretariat. He said, “There is no mention in the redevelopment policy about liability if a developer takes a bank loan and defaults. The old members have already paid for their homes. Why should they be dragged into a financial mess they have no part in?”

Key Demands For Resident Protection:
1. No Land Mortgaging: There should be prohibition on developers mortgaging Housing Board land for loans.
2. Keep old homes off-limits: Assurance that newly built homes allocated to old members will be free from any financial encumbrances.
3. Developer accountability: The society association (which includes old members) will not be liable for developer financial obligations.

The lack of these written safeguards is causing considerable skepticism among the residents involved in these redevelopment projects.

Addressing these concerns, Sandeep Vasava, Housing Commissioner, told The Secretariat that a government order issued on March 18, 2025 assures:

  • No land can be used as a collateral and mortgaged for redevelopment purposes
  • Sole liability for loan defaults lies with the developer. Old members’ homes and units are protected
  • Developer is responsibile for any loan/s, tied to their unsold units only

While this statement offers comfort, with the absence of a formal written redevelopment policy the residents remain unconvinced.

List of Housing Board Societies Currently Being Redeveloped in Ahmedabad

  • Surya Apartment (Sections 1, 2 & 3)
  • Rameshwar Apartment
  • Suramya Apartment
  • Amar Apartment
  • Shastrinagar (Sections 1 to 5)
  • Nidhi Apartment (Section 2)
  • Shanti Apartment
  • Unnati Apartment
  • Ravi Apartment
  • Abhishek Apartment
  • Sonal Park
  • Vasundhara Society
  • Siddhi Society
  • Shiv Society
  • Gitanjali Apartment
  • Sundarban Apartment
  • Nandanvan Apartment
  • Nirmal Apartment
  • Shraddhadeep Apartment
  • Gokul Apartment

Until the policy is updated in black and white, the question lingers: Who’s on the hook when things go south?

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