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.
my question is can Sec.95A of the mahada act apply on any socities? if yes under what ground or can we filed suit against that section.
Our building has gone for redevelopment and has reached a stage to get convenyence. the flat owned by us is in my father’s name (now he is no more). Now while registring for the new redeveloped building, we wish to change it to my name, and all the other members of house, mother, brother, sister and myself have prepare a NOC to that effect but not registered. With this document can we still change it to my name or we need to register it with some modified clauses and release the title. Can you give me a detailed procedure for such a change in name and how much will it cost. As the builder says it is easy to get the name changed now otherwise it will be in the name of all 4 of us.
sir , i am residing in Mumbai . our society is already redeveloped once . After 30 years 2nd redevelopment is initiated by the developer . . .so the query is for 2nd redevelopment project will i be entitled for additional FSI(floor space index) benefit and am i entitled to receive additional compensation ?if yes how much FSI . . .( i am flat owner )
Dear Sir,
I am staing in below address premises since 36 years. and she expired, and I am staying with my mother at the deathe of her till today. And my landord has collect rent from me till September year 1010 and now purposly he is not taking rent from us and tryin go hareshmnet to vacat th primises in short time! So can you guide me what shall I do? in my building all oter tenent have been vacted but due to my finacial condition I have not vacted the premises. So please gide me what shall I do? Vinu N. Shah. 15, B, Navroji Lane, 6, Omkar Building, Ghatkopar (W) Mumbai – 400086
I like to know , on redevelopement of a socciety, what is extra FSI granted to-day, for society in vile parle-east
which documents required for purchase chawl room
how to payment room purchaser to room seller
we are searching for gud Builders for the redevelopment of our old buildings.
There are total 55 rooms in three buildings which is located in ” kanjur marg- east, bhandari co-operative housing society, ganesh prasad , opposite sbi bank ATM , Mumbai 42 ..
We had already given adds n news paper still no response .
If possible plz suggest us.
We are searching for builders for redevelopments of our old buildings
If the building is sold on ourite basis 70% members are going outrite and 30 % not, in that case whether tendering proceedure is required.
Lalitha
I am staying at grant road new chikalwadi N.B. rd. mumbai 400007, in my area old chawls hasbeen already Developed from 1987 to 2006 constructed new bldgs. now again residential peoples are demanded to demolish all constructed bldg s and Redevelop all bldgs Local peoples are introducing developer and builder. but this property is under MHADA . Is it possible to redevelop above property
We have a property in Kalbadevi which we would like to sell. If anyone is interested please contact us +27114131681/ rawatam@gmail.com
Thanks
WAnt to know the consultant regarding redevelopment cell number
Dear Sir, in our almost 60 years old society most of the members are agreeable for redevelopment. However the secretary of the managing committee is against it for the reason only known to him. The other members of the managing committee do not have courage to oppose or persuade him. As all the members of society are aged, they do not know how to move forward. This secretary does not allow this item of “redevelopment of society “to come on agenda and hence does not allow discussion on it in AGM. He also tells that without approval from him and the managing committee he will not recognise any subcommittee working for the redevelopment of the society. He keeps on collecting funds for repair of the society. These repairs make only cosmetic changes in the society but he succeeds in pushing the issue of redevelopments by 2-3 years. He also threatens to resign and the aged members feel helpless as they cannot take the burden of running the society due to their advance age. In such case is there any legal way to bring this item of redevelopment on agenda without any friction with this secretary. I hear that a proposal of redevelopment can be submitted with signature of 25% of members. Is this correct? Could you help us with the contents of the draft for such proposal and any rule or society act to justify this fact? We will need to convince him to accept this proposal. Awaiting reply Thanks in advance and regards, Shrikant
What is procedure of builder after the tenants consent r signed 1st he gets the iod or 1st he vacates the tenants from the bldg pls reply
Our buildig in Tilak Nagar MHADA society, redeveloped under demolition and reconstruction basis and the developer has given possession for occupying 81 flats in 2 wings during 2007. However the old 36 tenants have their own old society and 45 new flat owners and 13 shop owners who already occupied the premises have not been granted with the society membership till now. For this reason, the new purchasers in the A wing is running common utility expenses (lift repair/maintenance, security, common electricity etc are managed seperately. The society have a dispute with the builder for petty reason and filed a case against builder. The builder and the existing society are behaving irresponsible for getting lift licence, water meter and payment of Property tax etc, The BMC already issued attachment order due to outstanding on property tax account in which the new purchasers have already cleared their share. The society is mismanaged by the Chairman and there is infight between the Chairman and Secretary due to manipulation of account. They says unless they get OC and the whole premises handed over by the builder to the society, they cannot admit the new purchasers as members of the society. There cannot be a chance to get OC in the near future in the TILAK NAGAR due to MHADA and BMC disputes. In such situation what is the option available to new purchasers. Do we have the right to approach the Dy Registrar of Co-operative Societies (for MHADA Societies) for intervention in the matter. Do we have option for registering with flat owners association.
We 320 tenent shastri nagar Dadabhai road (Linking Road ) extn santacruz west mum 54
living on above address from last 55 yrs and now we want redevlopment
almost 75% tenent r ready for devlopment but before that of work has to form society register today we want to know is BMC ready for private redevlopment which will benefitted both (B.M.C) as well as tenant we r Ready if B.M.C ( MUMBAI) READY to take the colony. forfor 30 yrs of lease plz reply if its possible as soon as possible
Dear Sir
We Request You That Please Clear That My Old Carpet Area Is 305 Sq.ft Which Stamp Duty & Registeration Has Already Done If I Will Go In Redevolpment Than Builder Will Extention The Flat & Extention Area Stamp Duty Will Pay By Builder Ok But Again We have To Pay Old Carpet Area Stamp Duty or Contruction Cost
Does SRA developed buildings go for redevelopment after completion of 10 years or more? if yes where shall I get information.
if a building is in a very bad state, and the tenants want re-developmment, though the land lords oppose the same for obvious reasons , as they want their land back, what steps should the tenants take to see the rights are maintained and the building goes under redevelopment , as they are living in a very dangerous state, where in the structure can collapse any time….. pl advice
my building constructed by mhada under pmgp scheme, now redevelopment process started, developer asking irrevocable concerns, on what ground we should sign the same( development agreement should registered before signing the concern) your help required, thanks
Hi,
Our Building (Landlord system) went into redevelopment and we got our possession 2 years back. Our builder only handed over the Flat keys to us without any documentation. We still don’t have any document about our flat. Please inform us what are document required to collect from builder. Do we need to ask for any other document, as we want to sell off our flat,
Also, who shall bear the stamp duty & registration and Electricity bill transfer cost, as currently we are receiving light bill on builder’s name.
WE WERE THE OWNERS OF THE LAND INITIALLY WHERE IN MY PARENETS SOLD THE FLATS TO EVERY INDIVIDUAL SO THEN I WANT TO KNOW IF THE BUILDING IS GONE UNDER REDEVELOPMENT AFTER ITS COMPLETION WHO WILL PAY FOR THE REGISTRATION AND THE STAMP DUTY FOR THE OLD OWNERS
dear sir,
we have two flats in mumbai city, which is in now in redevloping plan, we didnot get our rent of this year.
suggestion is required.
thank u
Is there a notification from Govt of Maharashtra stating that for development under 33(7), Amount to be deposited as Corpus Fund should be equivalent to 10 years maintenance after obtaining the OC for the rehabilitated tenants in the new Society.
WE WERE THE OWNERS OF THE LAND INITIALLY WHERE IN MY PARENETS SOLD THE FLATS TO EVERY INDIVIDUAL SO THEN I WANT TO KNOW IF THE BUILDING IS GONE UNDER REDEVELOPMENT AFTER ITS COMPLETION WHO WILL PAY FOR THE REGISTRATION AND THE STAMP DUTY FOR THE OLD OWNERS
Hi,
Our Building (Landlord system) went into redevelopment and we got our possession 2 years back. Our builder only handed over the Flat keys to us without any documentation. We still don’t have any document about our flat. Please inform us what are document required to collect from builder. Do we need to ask for any other document, as we want to sell off our flat,
Also, who shall bear the stamp duty & registration and Electricity bill transfer cost, as currently we are receiving light bill on builder’s name.