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.
sir
can u provide me list of document require for dc rule 33(7) and whitch type of n.o..c require for start the project.
thanksss
Sir.
I would like to know if the plot owner is B.M.C and the tenents are also the workers of B.M.C they r calss 4 workers ie zadu kamdar they are there from as long as 1960 if any private developer wants to redevelop this land in joint-venture with B.M.C how can it be done is there any proper guidline for it can u please help me
our residence has to undergo for redevelopment under said rule. Any dealers may contact
sir,
i have purchased a flat in an redevelopement project 6years back.
but the builder has not yet got the OC.
the old society members are not ready to make us the member unless the builder gets an OC.
pls reply what can i do.
Sir, I would like to explain that we are tenant of BMC Building and now condition of Building is very bad.Kindly suggest MHADA can do develop of BMC Building. We approach so many time to BMC for redevelopment or reconstruction of the Building other wise ti will damage life of innocnet people.But as usually BMC did not interfere , neglect or ignore the matter. Further we do not have capacity to develop the Building.Therefore, we need assitance regarding same from another appellate authority which do same for us.
please reply and suggest relevant lay
Our full society has been purchased by a IT company on a out rate basis….how long does it take for paper work to be completed and when shall we receive out token money..
pls advice…
wE want 2 go in 4 redevelopment but v r not sure abt the new GR of the MhADA due 2 which the developers are not willing 2 go ahEAD with this redevelopment progrAMME. HENCE I REQUEST U 2 KINDLY MAKE CLEAR AS 2 WHAT IS IN THE MINDS OF MHADa and whether we stand a chance as r bldging is in very bad state and needs redevelopment bADLY BUT unless the builders APPROCHING US r sure abt whether they have 2 pay premium or share the flATS A t the desired proportion LAID down by mhada, in between the public is put under pressure and left in the docks. so please clarify and sent reply
Can u give provide me D.C.rule of 33(7) and 33(9)
Sir,
I stay in old chawl. Before 14 years our builders demolish chawl and shifted us into transist camp promising us that he construct new building in 3 years. Now 15 years laps still he not construct new building also the transist camp where he shifted us that camp position is also very durty and danger .How can we fight with our builder.Builder name is R.M.Bhatter Developer and articht is Kapadia( having office in worli). Please guide me.
can we give signature to consent letter without knowing the plans of developer under 33(7)
Dear Sir,can u provide me list of documents require for DC Rule 33(7) and which type of NOC require for start the project.Thanks & Regards
Dear Sir,
Our Building has been redeveloped. The builder has registered the development agrrement, is it necessary to register & pay stamp duty on Individual agreement for the area difference. If yes please let me know the calculation.
In redevelopment of mhada building, the builder gives corpus fund say something 25 lakhs, my question was is there any tax on corpus fund
REDEVELOPMENT OF OLD BUILDINGS kidwai nagar R A Kidwai road wadala mumbai
Dear Sir,
This is to inform you that we are staying in pagadi system building but the bulider has come to our place now he is the owner also from past seven year and yet he has not developed the building kindly helps us.
I am S.Janardan , l am living in South Mumbai . I have a small residetial room ( Approx 225 Sqft ) in newly reconstructed Building & I am intersted to convert it to commercial for Uses like Tution Classes , Office Permise etc . Is this possible in BMC ( mumbai ) rule with the legel procedure? Can you help me for regarding this matter ? & if Yes , How much time will be taken by BMC ( mumbai ) for this prosedure ? Thanks.
Regards,
Janardan S.
what is “corpus amount” and how is that decided?
Mine is a Tenanted Flat constructed in 1930. The buildind is come up for Redevelopment and there are 7 tenants plus a Bank operating on the Ground Floor. Could you clarify the following. The Landlord has appointed a Developer and says the tenants have no say in selecting a Developer of their choice. The Developer has promised the Tenants an additional area of 160 sq.ft by way of providing FLOWER BEDS. Is this acceptable? Lastly I would like to know what is the Corpus Amount calculated on and can tenants ask for more? Hoping for a reply to my questions.
we soc members want to develop our 1962 building which was located in dadar. what will be fsi we will get. under dc rule 33(6)
Sir, the Building i am staying is very old the ownership of the land is in dispute,my father has been a tenant for
last 60 years. we tenants want to go for redevelopment,but since landlordship is in dispute no builders want to work with us. can any one suggest,a way ?there are only three tenants staying right now.rest have shifted.Please advice.
can you please send me a copy of the GR prevailing during 2002 for payment of property tax under Rule 33(7)
my ownership society is auction by BMC due to default in payment of property tax by our society member, so now what is possition of member to sale his flat or not . BMC property tax is now in favour of purchaser in bmc auction name insead of society name .water and electric bill is still in society name.we also pay this regularly time to time now.
if O.C is not acquired by the society can they get deemed conveyance and if not can we vacate house for redevelopment.
I am the lone wolf who wants to conduct repairs in my building, while the others want to go to redevelopment some for space reasons, some because they don’t want to spend money to fix up their flats, some on account of apathy, and some expecting kickbacks from the builder as is normally the case.
If I continue to say no, what could be the course of action I should expect?
Also, is there a checklist of questions to ask the builder or to vet each proposal? If it ends up going that far, what is the best way to make sure the legal language in an agreement is as it should be? Where would I find the rules encompassing such redevelopment of old buildings that define constraints and responsibilities on each party. Each builder uses their own format to write up quotations, and since my building is considering so many of these, I would like to understand what are the issues a redevelopment effort faces.
Thank you very much.
Alex
best data.
thanks for giving best knowledge.
MHADA has recently announced 2.5 times FSI for its buildings. However, it is learn that MHADA is not going to take up the responsibility for development and handing over the charge of new flats to those who allow to demolish their construction and permit to build new. How far it is fair on the part of MHADA to proclaim such scheme without accepting responsibility for its completion.
Our building is under redevelopment, in this case builder are not showing us BMC apporval plan for our building. Please advaice me, wheather we submit our original aggrement to builder or not
Sir, as per TPS 1966, datum line of eligibility is 1-1-1976 and as per SRA scheme datum line of eligibility is 1-1-1995. and no chain is accepted for the said eligibility. request u to guide me that what is the difference between datum line under TPS and SRA scheme. As there is two original plot was there where under TPS-V one final plot created by merging two original plot. where Plot one is having Gr+3 building and second plot is having chawl (prior to 1960-61) systems which older than the plot one building. BMC is given notice for demolition of chawl and every one residing on the said structure is non eligibal. i am awaited for you advice of diff between TPS and SRA datum line.
sir, wat is a rule for a redevelopment of a building for a tenant means “pagadi” land n hw much xtra land a builder should giv to der tenants. Also land owner is in partnershp wid builder
Dear Sir,
can u provide me list of documents require for DC Rule 33(7) and which type of NOC require for start the project. suppose builder is declined our demand after clean up area, then how can stay on project from one individual tenant or more than tenants. pls reply me ASAP.
Thanks & Regards
my builder is proposing redevelopment of our building. the building is only 12 years old. he says he has extra FSI. The other thing is that the building is not seisemic proof. We are ten flat owners. The building has 12 flats and two of the owners have purchased two flats oech. The builder says that each flat will get about 3oo sq ft approx in addition to existing area and if any flat owner do not want the extra 300 sq ft. the cost of this will be calculated & it will be utilised in the reconstruction of his flat. No cash will be given. If any one requires the additional area he should pay for it at the market rate. ie Rs 3800.oo/Sq.ft. Also he is not providing alternate accommodation during the construction time saying he cannot offord. He is planning 5 floors with four flats in each floor. We are 10 flat owners. that means he will have 10 flats to cell at the market rate. Also he is not talking about the cash to be given to the old flat owners and not accepting to pay the rent for the owners when they vacate their flats for redevelopment and move to rented premises. How do we flat owners handle this situation. Please guide. All are interested in redevelopment.
how to find out wether our society is a stilt society or not, what is the difference betwen open stilt & semi open stilt. In our society ground floor is half occoupied by flat & the front half is stilt for parking.
most of the people in our society are ready for reconstruction of the society by the builder but there are few who are not interested .Please advice me how can i handle them and is there any provision for this in uttar pradesh because I ve not heard of any redevelopment of housing society in UP
Sr. No 14(pt) and cts 19(pt) M ward west .i am staying at Tilak nagar chembure, let me now the our plot will be under which scheme for redevlpment of the majada give the comlete details
Sr. No 14(pt) and cts 19(pt) M ward west .i am staying at Tilak nagar chembure, let me now the our plot will be under which scheme for redevlpment of the mahada give the comlete details let me know the documents required for the redevelopment. total members is 64 out of that 7 memb was not given consent letter can start the redev. by the developers
Sir, Provide me the list of legal documents from the developers and from the society is required for the redevelopment project of the mahada building
Sir,
Parking policy:There is the judgement of the highcourt that the Society is not a authrised to sell the parking place to the developers or to the flate owners
there is Judgement of the high court is applicable
Sir,
Parking policy:There is the judgement of the highcourt that the Society is not a authrised to sell the parking place to the developers or to the flate owner
there is Judgement of the supreme court is applicable
I was purchased a shop from the last 5 years from the Society in Mahada building, ther are A wing for old tenants and B wing for the salable new tantent
till today member of the b wing Resi & commercial will not get the share certificate b;cause of the dispute of the A & B wing who is responsible for that? MC of the soc, Developers, Mahada ?
The Trasure is not shown any outstanding liabilities from last ten years, after he become a secretary without any legal procedure and verbally saying that ther is the outstanding liabilities from the year 2005 and never shown in the any past balance sheet till today one advocate of the same building is involved in this matter which kind of the legal action should be taken on that Secretary/Advocate as per the Maharashtra societys act and How the M.C of the soci is making a frowd with the members.
Its the case of the Mahada Building in Tilak nagar ar The Trasure is not shown any outstanding liabilities from last ten years, during his post of the MC. after he become a secretary without taken the members into confidence any legal procedure and verbally saying that ther is the outstanding liabilities from the 10 year and never shown in the any past audited balance sheet till today one advocate of the same building is involved in this matter Sec. was given Indimenity Bond to the Mah. Soci and Mahada which kind of the legal action should be taken on that Secretary/Advocate as per the Maharashtra societys act and How the M.C of the soci is making a frowd with the members.I s possiable to laying a frowd case on the M.C.
Its the case of the Mahada Building at Tilak nagar. The Trasure is not shown any outstanding liabilities from last ten years, during his post of the MC. after he become a secretary without taken the members into confidence any legal procedure and verbally saying that ther is the outstanding liabilities from the 10 year and never shown in the any past audited balance sheet till today one advocate of the same building is involved in this matter Sec. was given Indimenity Bond to the Mah. Soci and Mahada which kind of the legal action should be taken on that Secretary/Advocate as per the Maharashtra societys act and How the M.C of the soci is making a frowd with the members.I s possiable to laying a frowd case on the M.C. as humanity the secretary give the resign from the M.c of the said Society
i am having plot in mumbai suppose 10 acre. then what will be sharing ratio when other is the financer for devlopment.
we the society are in search of the financer for redevelopment of our dilapidated buiding situated at Ghatkopar East
I HAVE PURCHASED TWO ADJOINING PENT HOUSE IN 18 STORIED BUILDING FOR WHICH OCCUPATION CERTIFICATE IS ALREADY RECEIVED AND SOCIETY IS ALSO ALREADY TAKEN OVER CHARGE FROM BUILDERS.
SINCE I HAVE TWO PENTHOUSES AND THERE IS TWO STAIRCASE MADE OF STEEL . NOW I WANT TO REMOVE ONE STAIRCASE (SO I DO NOT HAVE TO CUT THE SLAB) AND WILLING TO INSTALL HOME ELEVATOR ( WILL WORK ON SINGLE FACE EIGHTER HYDRAULICK OR GERALESS MOTORS).
DO IN NEED BMC PERMISSION FOR SAME? PLEASE REPLY.
THANKS
ANIL AGARWAL
Suppose we want to redevelope our bilding which is constructed by MHADA in 1965 can we give to the private builder for re-developement.
DEAR ALL IF ANYBODY WANTS TO REDEVELOP OUR SOCIETIES THEN CONTACT US IMMEDIATELY
Sir,
I live in Kolkata and I stay a rented house from 80 years back and the tenancy bill was named my grand father but after his death my father was gone to change the name for his but landlord refused (old landlord was sale to a new landlord ) . Then my father paid the rent to the rent control and continue left two years he is died and now the landlord want to redevelop the property and asking for agreement of draft so can you tell me sir what points are necessary to made a agreement of draft? Which is risk less for us? presently I stay with my mother and Under the same landlord we have a shop , it has individual bill , it also be paid in rent control. Presently we face with economical problem and fear from lost place. Please help to safe.
have a room in mumbai kalbadevi area consisting of 10 rooms-2 floors (pagdi system.). My building is very old. and about to be demolished in 2 or 3 years time. plz suggest what will i get after the demolish. i.e the total area of room, rent, and any other information to my knowledge.
Please let me know. Whether a tenant looses his rights if the structure is demolished by the Municipal corporation