By Legal Bureau
REDEVELOPMENT OF OLD BUILDINGS
Introduction
Shelter is a basic human need, which has become a major challenge in a country, which is fast urbanizing. Maharashtra is one of the most urbanized states in the country. Whereas nationally 27% of the population was in the urban areas, in Maharashtra, the figure was 42% (Census 2001). Housing in urban areas assumes much greater significance, as it relates not only to basic shelter needs but also provides a facility to the citizens to access services and be part of the development process. Housing implies not only construction of bricks and mortar; it includes the supporting infrastructure, access to transport and employment opportunities.
Meaning
Redevelopment refers to the process of reconstruction of the residential/commercial premises by demolition of the existing structure and construction of a new structure. This is done by utilizing the potential of the land by exploiting additional TDR, FSI as specified under the Development Control Regulations of Municipal Corporation of Greater Mumbai (MCGM).
Types of Redevelopment
Redevelopment of old dilapidated building
Redevelopment of Old Mhada Colony
Why Redevelopment is required
For Existing Owners
Though they are in dire need of extensive repairs, societies are starved of necessary funds required to carry them out. On the one hand, they do not have the resources and expertise to handle the repairs on their own and on the other, the families of the members have expanded and they need larger space to accommodate themselves.
Drawbacks of old buildings:
Lack of services such as security, cleaning, and to operate pumps.
Absence of common facilities like gymnasium and a society office.
Unavailability of proper playing area for children in the compound.
· Perennial leakage in the structure and also in the overhead or ground floor water tanks.
· Unavailability of elevators causing suffering to heart patients and the elderly.
· Absence of a proper entrance lobby.
· Room sizes being too small.
· Interior planning of rooms being unsatisfactory.
· Lack of attached toilets in bedrooms.
· Plumbing/electrical lines lying open
· Size of toilets being too small
· Low resale value due to poor condition of the building
For Builders/Developers
Builders/Developers opting for purchasing land and developing the same, incur huge stamp duty cost on transfer of land. Instead redevelopment of old building reduces stamp duty to a significant extent. For this they enter into development Agreement with Society. Entering into such development agreement does not vest any title of the land in the favor of developer, but merely authorizes the developer to develop the land.
The builder approaches the owner of the land and, instead of buying the land and paying a large amount towards the purchase; he enters into an agreement with the owner for permission to develop the land on the owner’s behalf. In other words, in a case of development, the builder constructs the buildings at his cost, retains some flats for himself to be sold in the open market, gives a few flats to the landowner and also pays him some monetary consideration. The developer carries out this development work in the capacity of a constituted attorney of the owner and not on his own behalf.
Later, these flats are sold by the developer in the open market and from such sale, he makes a profit. The rate of stamp duty in respect of development agreement being much less than that payable on outright purchase, there’s a significant saving in stamp duty cost. Later, when the building is actually conveyed to a co-operative society or a company, the landowner and builder become party to the conveyance deed on which the stamp duty is payable and the same is also registered.
Procedure for redevelopment of an immovable property.
The consent of the society members must be obtained during society meetings. On or before the execution of the agreement, the society should hand over to the developers, the copy of the conveyance deed in respect of the society’s property, along with certified copies of the property register card, index II, latest electricity bill, water bill, municipal tax bill, N.A. tax bill in respect of the society’s property and also, the copy of the registration certificate of society under the Maharashtra Cooperative Societies Act, 1960.
The list of members with their choice of new flats and parking, area entitlement among others as agreed upon in the new building should be prepared. The terms about the provision of temporary alternate accommodation to the members during the construction period should also be made clear in the agreement.
Challenges
Inability to assemble all members of the society at a single point of time, as some of the members may not be available. Some flats may be mortgaged to a bank or a financial institution
Some of the members may be interested in purchase of new flats at a discounted rate in the new building.
The title may not be clear, i.e. conveyance deed of the land and structure is not executed in favor of the society.
Anxiety in the minds of the members about possible delay in completion of the project after they have vacated their old flats.
The old documents of the members may not be traceable
Lack of unity amongst the members
The tax issues regarding redevelopment are not clear to the society.
Very high prices are expected on sale of old flats in the case of certain members who are not interested in staying in the new building.
Corpus amount takes a long time to be fixed by the society.
The decision as to which member will get what type of parking takes a very long time.
Government Role.
The redevelopment under DCR 33(7) and 33(9) will continue, it is proposed to introduce the cluster or precinct development approach and to incentivise the same.
CLUSTER APPROACH
The Cluster Redevelopment Approach has successfully transformed the cities of Hong Kong, Singapore and Shanghai. It is proposed to adopt a similar approach for Urban Renewal in Maharashtra State. For the redevelopment of old buildings, it is proposed to undertake cluster development as strategy for expediting and to bring about planned development. In order to promote cluster redevelopment, it is proposed to give higher FSI to large cluster redevelopment. The main objectives of the cluster approach will be as follows :-
a) To transform the fractured development in to cohesive urban unit as laid down in Development Plan.
b) To provide modern accommodation and social services which raise living standards and reduce disparities amongst different sections of population.
c) To provide an environment which permits the residents of such areas to live fuller and richer lives free of physical and social stress that are generally associated with haphazard urban development.
d) To facilitate development and proper maintenance of infrastructure facilities such as sewerage / storm water drainage /DP Roads which cannot be developed because of the present haphazard Development
e) To generate maximum number of surplus tenements for rehabilitation of the occupiers who are on Master List of MHADA. The fact that MHADA will play the nodal role in the cluster approach and shall be a signatory to all the agreements will provide greater acceptability and credibility amongst the tenants and landlords.
JOINT VENTURE FOR REDEVELOPMENT PROJECTS
Till date, the Repairs & Reconstruction Board of MHADA has been able to undertake redevelopment of old and dilapidated buildings under DCR 33(9) Few Other old and dilapidated buildings have been reconstructed through private developers under DCR 33(7). In order to accelerate the redevelopment of old and dilapidated buildings, it is proposed to encourage redevelopment projects through joint ventures in which MHADA along with the tenants, landlords and private developers, if necessary, will come together for undertaking redevelopment of Cluster. Detailed guidelines for this scheme shall be issued by the Urban Development Department separately.
ADOPTION OF EARLIER REPORTS
The problem of Urban Renewal and of old and dilapidated buildings and the need to bring together tenants and landlords is a concern not only for Mumbai and its suburban areas but, also for other cities of Maharashtra State. This problem has been studied in detail and recommendations of Sukhthankar Committee and Afzulpurkar Committee have been accepted by
Government. It is now proposed to extend the applicability of these two reports to all Municipal Areas of Maharashtra. The concerned Municipal Corporation or Council will adopt and
implement the principles enunciated in these reports with suitable local modifications. This will be monitored by the Urban Development Department.
Conclusion
There are constraints on the availability of open land within the city limits coupled with fast growing demand for houses and shortage of housing stock. On the other hand that there are thousands of ageing buildings which are dilapidated and have reached a stage where it is not possible to carry out structural repairs and rehabilitation as the same are not economically viable. The redevelopment of old building has become a necessity since the problem of old and dilapidated buildings in the city of Mumbai grows more acute with each passing year and with each passing monsoon more and more building becomes dangerous and unfit for habitation. Many of these buildings are so run down that they are unrepairable and the only solution is to put them down totally and to reconstruct them.
Scheme which involves adequate and due compensation to the landlord and the tenants/members and to the developer duly is an ideal Redevelopment scheme. This needs faster procedural clearance from Government.
I want ro know on guidlines to start redevlopment. thanks in advance
What happens if the cost of repairing an old dilapidated building in CRZ ii is costlier than the cost of constructing a new building in the same premises? Is it possible , specially if
1)total fsi of 1 has been used.
2)can the residents continue to live there till the new building comes up, as who will pay for their stay as they are developing it to avoid the high cost of repairs?
IF PLOT IS IN CRZ AREA THEN IS IT TRUE THAT IF WE GO IN JOINT VENTURE WITH MHADA THEN THE SCHEME CAN AVAIL 3.19 FSI
what are the ammendments in the DCR(33)9
if landlord wants to redvelop the property in that case what is the things is must like security deposit, corpus fund , extra sq. ft. , rent for shifting, and what is the other items is imp. while signing the agreemet
my flat in a new mhada project in pune (2004) on the last third floor has started leaking from the bathroom and water trickles down right up to the ground floor .the construction of the mhada project has been done in 2004. The society collects monthly maintenance charges. i would like to know who should bear the cost of leakage repairs which is approx rs 4500/- . should the repairs be done by —– ——–1) pune mhada office 2) by the society 3) By all three floor members equally or 4) who else please let me know at the earliest as the issue is on for the past fortnight
Since MHADA is not in picture now becuase society is formed. The expense must be done by society and not by concern member. In the absence of WILL, members can contribute equally.
according to 33(7) BMC’s old prperty .If the construction of the redevelopment in progress and before getting occupation certificate, if FSI increases to 0.5 to 1, in that case how to cosumme the balance FSI and will it benefited to the tenant , woner or only for developer?
if landlord wants to redvelop the property in that case what is the things is must like security deposit, corpus fund , extra sq. ft. , rent for shifting, and what is the other items is imp. while signing the agreemet and what r the rules?
I am planning to purchase a property which is 15 years old.the flat is in PUNE in very good area,very maintained building and very specious…as am buying it at reasonably high rate..i would like to know whether i would get some appreciation whenever the bldg goes for Redevelopment(already 2 building adjacent to our building has been redeveloped).Before purchaseing the flat …how do i ensure that there are no legal difficulties in terms of FSI/TDR..so that i can count on the appreciation whenever the building goes for redevelopment.? can any one help?
Dear sir, I would like to know about what is rules and regulaiton of re-devlopment building i am staying at Serve no 111/D Plot no 9, 4 Bunglows Andheri West,Mum 400 0053.
I am waiting for your kind reply
.
if landlord wants to redvelop the property in that case what is the things is must like security deposit, corpus fund , extra sq. ft. , rent for shifting, and what is the other items is imp. while signing the agreemet and what r the rules?
Should the corpus fund amount be given by the Landlord / Developer or shd it be collected from the Tenants
When pvt builder making building then what is roll of mahada
how can we utilize the road cutting area.? ill b appriciate if some 1 helps me on this issue? thanks..:)
Is there any law to redevelopment of ADIVASIS LAND ?
As a second holder of a flat in a building which is in the process of being redeveloped what rights do i have?
i am living in one of repaircess building of mhada . and is now under the project of private builder. builder measured my room as 547 sq ft insted of 777 sqft. i havent extended my construction in common area as others! mhada posses the old plan of my room and said that they are certifying the area in favour of land lord or the comitee of the devoloper ! in procedure of certifying the area of each room before devlopment the dession of land lord or comittee or the devloper is important insted of what is shown in old plan they said!
in such case i wish to aply for the stay order if the builder or the mhada is not responsing for this mistake! as soon as reciveing the legal notice to vacate the room i wish to aply for stay order. the question aries in my mind can 1 can i fight the case without vacating my room before judgement? is procedure of recieving the stay order lengthy? and how much cost should i pay for stay order from high court? i dont hve sufficent knowlage of english so wish to fight this case in marathi in highcourt is it possible?
My name is janardan sawant,
I want to know that
if landlord wants to redveloped his property in that case what ithings is must like to do-liket security deposit, corpus fund , extra sq. ft. ,Monhly rent for tenant,shifting charge and what is the other items is importants,. while signing the agreemet with tenants and what r the rules to develope the property and what benefits must gets to tanents ?Should the corpus fund amount be given by the Landlord / Developer or shall it be collected from the Tenants from old Building.
My MHADA flat is proposed for redevelopment and the builder has given us a temporary shift as accomadation. He hasnt given any legal papers for the new make shift place or the new redeveloped property. I dont want to leave the place. Can I fight for my rights? What are the legalities involved and the problems i can face. 90% of the owners have shifted to the make shift accomadation and the builder has issued me a notice to vacate my place within 7 days. Pls guide
In redevelopment what does rule says if builder does not agree to give the flat on the same plot where the existing old building. if any rule is there can i have the act & clause no of the same.
Thanks & Warm Regards,
Rajan Deshpande
Please provide me dcr latest rules as on today for redevelopement of old buildings under section 33(7) and 33(9) of MAHADA.
– THANKS IN ADVANCE
i am resident of plot no.32,s.no-228/5,mhada colony, pune.
Resident of plot no.49. occupied open plot of bore well totally.
I think it is unauthorized.
If it is authorized than these plot mhada should give equally to both of us.
hi,
I would like to know the parking allotments for the old residents if the existing buld goes for redvelment under 33(7) norms or 50% incentive schemes.
thanks, kishore
dear sir,
I am along with others is the co- owner of a multistory building at kalbadevi road, mumbai, which is a totally tenented,it was destroyrd in fire resulting in destruction of top 4th and 5th floor, the mahada was taking up the reconstruction work which has been stalled by the tenents saying they would like to go for redevelopment of the building, we are residents of delhi and are not aware of the redevelopment act as the tenants are also saying that through this act they will also become owners after redevelopment.
can the tenants go for redevelopment without the landlords permission, what is the position if the landlord has mortgaged the premises to bank what if housetax liablities to the tune of corores of rupees are outstanding and also court cases for the same is in process .
I want 2 know what is sanctioned fsi for hig flats
Dear Sir,
I am a member of 26 flats society in kandivli-west. Our plot area is 982 Sq.Mtrs. and total built up area is 12965 Sq.Ft. It is 1978 construction. We are going for redevlopment of society building. Consent for redevelopment already obtained from all members.Conveyance was done in 1986. Please guide us on following points.1.where we can get the redevelopment process in writting.2.what FSI available for new construction.3.what will be stamp duty/ capital gain on enhanced area to members after redevelopment.4. please suggest a good solicitor and architect to work on behalf of society members. Thanks & regards
if landlord wants to redvelop the property in that case what is the things is must like security deposit, corpus fund , extra sq. ft. , rent for shifting, and what is the other items is imp. while signing the agreemet and for CAR PARKING
we reside in a MHADA bldg which has been undertaken for reconstruction but the builder insists on starting the bookings for the new flats in the new building before demolishing or partly demolishing the old building..is it permissable?
minimum area to be alotted for redevelopment of society is 225 sq.ft or 270 sq.ft
if landlord wants to redveloped his property in that case what ithings is must like to do-liket area(our area is 88400 sq.ft and the tanant are 465+31 shops), corpus fund , extra sq. ft. ,Monhly rent for tenant,shifting charge and aminities + permissible area for recreation,what is the other items is importants,. while signing the agreemet with tenants what is the paper work ?
how many f.s.i. will we get in CRZ as on now. when will be CRZ released ?
DEAR SIR,
Recently as the central government. has made a relaxation in C.R.Z, please let me know the details about it . And how can we go about re-develope the property in C.R.Z. and what role will M.H.A.D.A play in it , can you please provide me with all required details. THANK YOU.
In redevelopment what does rule says if builder does not agree to give the flat on the same plot where the existing old building. if any rule is there can i have the act & clause no of the same.
if landlord wants to redvelop the property in that case what is the things is must like security deposit, corpus fund , extra sq. ft. , rent for shifting, and what is the other items is imp. while signing the agreemet and what r the rules?
I would like to know the parking allotments for the old residents if the existing buld goes for redvelment under 33(7) norms or 50% incentive schemes.
In redevelopment what does rule says if builder does not agree to give the flat on the same plot where the existing old building. if any rule is there can i have the act & clause no of the same.
if landlord wants to redvelop the property in that case what is the things is must like security deposit, corpus fund , extra sq. ft. , rent for shifting, and what is the other items is imp. while signing the agreemet and what r the rules?
Should the corpus fund amount be given by the Landlord / Developer or shd it be collected from the Tenants
How to redevelope society at thane and suppose that society is on lease and not conveynce that what steps to be followed.
What is the basic procedure of the redevelopement of the soceity and idea about what FSI will get for the project.
i am residing ad mumbai and want to redevelope our old building with the help of owner,but some rooms titile are not clear (not uet changed) is there will be any problem in future for development?
thanks
our bldg was dilpidiated & we shifted to MHADA Transit Camp Now the builder approached for the redevelopment.But he refused to pay transfer charges as per our requirement.He told us that as per rule 33(7) he will pay only the rent which is to be paid by us to MHADA. What is the rule for fixing up the transfer Charges? How much minimum & maximum we may get the Transfer Charges & Corpus Fund?
Our building is constructed by MHADA under PMGP project. The building is handed over to us in 1998. But the current condition of Building is not very good. Can we go for redevelopment under 33(7). Our Society is registered but the onveyance of building is not done in the name of the society. (because still some members have to pay their initial allotment amount). Please Guide.
respected sir,
sub:- about consent format
I Mufaddal Nadir would like to know the actual format for the consent letter, because the builder has provided us the consent letter stating that “I hereby give my irrevocable consent for the redevelopment of the caption property in accordance with the modified D.C.Regulation 33(7) , subject to the following terms & condition the developers can also redevelop the said property in D.C.Regulation in 33(9) or any other D.C.Regulation whichever is viable to them”.
Hence i would like to know that, is this the correct format for the consent letter? Or he must specify any one of the D.C.Regulation?. I kindly request you to send me the correct format for the consent letter on the above E-Mail address. Sorry for the inconvenience, hope you reply as early as possible thanking you , your’s faithfully,
Mufaddal Nadir
Some of the members of our society including office bearers wants to redevelop all the 12 buildings-with 240 flats which are only 25 years old . Some of the building require minor repairs which society is not ready to carry out. They formed the cartel by appointing a committy within them for going through the process. I want to know that if indivisual members do not want the redevelopment , are the society office beares are authorise to go on for redevelopment? Is there any rule that individual members consent is require for the same.
Dear Sir,
I Need the basic guidelines of how to start with the Redevelopment. I need details of paper-work such as ammendment of bylaw 5A,procedure to get it approved and the steps thereafter.
Awaiting your feedback. Regards
please sent us the format for the consent letter. I have sent you the comment before also, so please have a look over it.please reply as early as possible.
sir,
Pl inform if a building is 23 yrs old than is it necesary for a building to go for redevelopment . We do not want to go for it. Our secretary and chariman are harassing for the same. Our building is strong enough to sustain another 20 years without any problem. We want to oppose. Is it possible.
Pl reply by email. Do not publish.
dear sir,
please give me feedback on the following issues:-
to start with i am living in a pagdi building in mumbai for the last 40 years, now the landlord cum developer wants to redevelop the same old building. for this purpose we all are ready to give the conditional consent six months to get the necessary documents as well as the plan to be approved from the concerned autority, but the developer is telling that he cant get the plan passed on the basis of the consent , he requires the registered agreement of the all the tenants, so is this so that he cant get the plan passed as he wants us to sign all the legal documents without showing us the approved plan and he wants us to keep in the dark that what he is going to build.
so please give me any concrete evidence that the builder can get the plan passed ad can obtain the iod as well on the basis of the consent from the tenants. he is also telling us to drag us in the court if we do not sign the agreement as well as irrecovable consent. please give me the guidance in this respect and also provide me the evidence of the same
I am a member of co-operative housing society which has 20 bungalows. All the bungalows have defined plot area in 7/12 document and fencing. Some members have already developed their bunglow to suit their needs.
Society has received a proposal from some developers to demolish all the 20 bungalows and build buildings. In return each member will get some cash and a flat. Society chairman is saying that if more than 75% of the members agree than all the bunglows will have to be demolished.
By not agreeing to society’s proposal we are not obstructing the redevelopment planned, as other members are still free to do such development.
Please advise in this matter
I m having total area in the old building 360 sq. ft. now our Building Owner is having one builder, the builder is ready to give 525 sq. ft. i.e. in addition to my 360 sq. ft. 165 sq. ft. addition. But he says he will put only 360 sq. ft. in the agreement because of some restrictions of Govt.
Now I want to put 525 sq. ft. in the agreement otherwise I am looser, if I want to sale my property to somebody else after a few years. The purchaser will pay me only 360 sq. ft. Kindly let me know How to SORT OUT THIS PROBLEM?
my devloper has stopped paying rent, what I should do?
I have purchased a dilapidated building in mumbai i want to redevlope but dont know address of old tanent accomdation given at mahada transit camp what should i do
Dear Sir, We are living in a pagdi system building in south Mumbai for the last 65 years, now the landlord cum developer wants to redevelop the same old building.
Could you please give some guide lines on redevelopment of old building-?
the developers these days are damn smart in fooling the old residents of ancient buildings..better consult a property attorney before signing any paper with the developer and the committee members are usually palmgreased by the developer at the cost of the occupants..Make sure there is a provision for bank guarantee,extra area (a minimum of 20% and maximum 30%)corpus fund in society which must cover the basic maintanance charges till the society is properly updated with the latest rules of BMC REGULATIONS..even a minor hitch say good bye to your nest and be on the road for ever….good luck!!!!!!!!!!!!1
My society is proposed to undergo redevelopment. After death of my father the flat is in my mother’s name. I am concerned what will be my position if I vacated the flat during the construction as I doubt that me and my family will be ousted from my home. Because I m sure my mother is averse to me and favours my younger married sister. I am the only son and have lived in joint family and despite this flat not being in my name I have contributed towards it in good faith. Pl. advise.