Category Archives: Redevelopment Rules

Redevelopment Rules

Legal Advisors – Redevelopment Mumbai

– We provide redevelopment legal advice (lawyers)

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– We are currently managing around 50+ redevelopment projects across borivali,kandivali,malad,gorgeaon,andheri,vile parle,santacruz,bandra

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Redevelopment – Development Control Rule No. 33(7) and 33(9) – as original and modified – Mumbai , Mhada

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Development Control Rule No. 33(7) and 33(9) – as original and modified



Rule No. Old with date of modification and Notification No. New with date of modification and notification no.
33(7) [Reconstruction or redevelopment by Co-operative Housing Societies or of oldbuildings belonging to the Corporation.- For reconstruction redevelopment to beundertaken by co-operative housing societies in respect of cessed properties located inthe Island City which attract the provisions of Maharashtra Housing and Area

Development Act, 1976 or by Co-operative Housing Societies of landlord and occupiers

of a cessed building of A category subject to the provisions of the said Act and for

reconstruction/redevelopment of buildings of the Corporation constructed before 1940.

The floor space index shall be 2.00 or the consumed floor space index of the existing old

building whichever is more. The F.S.I. will be subject to the Regulations, in Appendix III

so far as construction or redevelopment by such Co-operative Housing Societies is

concerned.](7)

[ ](7) – This clause is deleted vide Government Notification u/s. 37(2) of MR&TP Act

1966 under No. FSI-1192/2896/CR-326/UD-11 Dt. 07.02.1994

[(7) Reconstruction or Redevelopment by Co-operative Housing Societies or of old

buildings belonging to the corporation:-

For reconstruction / redevelopment to be undertaken by the co-operative housing

societies in respect of cessed properties located in the Island City which attract the

provisions of the Maharashtra Housing and Area Development Authority Act, 1976 or by co-operative societies of landlords and occupiers of a cessed building subject to the

provisions of the said Act and for reconstruction / redevelopment of buildings of the

Corporation constructed before 1940, the floor space index shall be 2.00 on gross plot

area or the consumed floor space index that is the total built up area of the existing old

building whichever is more. This floor space index will be subject to the Regulations in

Appendix III so far as construction or redevelopment by such co-operative societies is

concerned.](8)

[ ] (8) – This clause is added vide Government Notification u/s. 37(2) of MR&TP Act 

1966 under No. FSI-1192/2896/CR-326/UD-11 Dt. 07.02.1994. This clause is further

replaced by subsequent modification as mentioned vide [ ](9

[(7) Reconstruction or redevelopment of cessed buildings in the Island City by CooperativeHousing Societies or of old buildings belonging to the Corporation – Forreconstruction/ redevelopment to be undertaken by Co-operative HousingSocieties of existing tenants or by Co-operative Housing Societies of Landlords

and/or Occupiers of a cessed building of ‘A’ category in Island City, which attracts

the provisions of MHADA Act 1976, and for reconstruction/ redevelopment of the

buildings of the Corporation constructed prior to 1940, the floor space index shall

be 2.5 on the gross plot area or the FSI required for Rehabilitation of existing

tenants plus incentive FSI as specified in Appendix III, whichever is more:

Provided, however that with the previous approval of the Government, MHADA/

Corporation shall be eligible to get additional incentive FSI over otherwise

permissible FSI as specified in Annexure III of these Regulations:

Provided further that in cases of composite redevelopment scheme for plot having

‘A’ category as also ‘B’ category cessed building the above FSI shall be available:

Provided further that in cases of reconstruction / redevelopment of buildings which

have been declared as unsafe by the BHAD Board prior to monsoon of 1997, the

above FSI will be available irrespective of category of cessed building.

Provided further, that reconstruction / redevelopment undertaken by proposed Cooperative

Housing Societies of Landlords and / or Occupiers of cessed building of ‘B’

category, and where composite development is undertaken by different owners of 5 or

more plots the FSI required for Rehabilitation of existing tenants plus incentive FSI as

specified in Appendix III will be available.

Note : – All Regulations / modifications mentioned above shall not be applicable to the

areas which are affected by Coastal Regulations Zone Notification issued by Ministry

of Environment and Forest, Government of India vide Notification dated 19 February

1991 and orders issued from time to time. ](9)

[ ](9)— This clause was added vide Government Notification No. TPB 4391/1681/CR-

188/91/UD-11 Dt. 25.01.99

[ 33(7) Reconstruction or redevelopment of cessed buildings in the Island City by Cooperative

Housing Societies or of old buildings belonging to the Corporation or of old

buildings belonging to the Police Department.

“For reconstruction/redevelopment to be under taken by Cooperative Housing

Societies of existing tenants or by Co-op. Housing Societies of landlords and/or

occupiers of a cessed buildings of ‘A’ category in Island City, which attracts the

provisions of MHADA Act, 1976 and for reconstruction/redevelopment of the buildings

of Corporation and Department of Police, Police Housing Corporation, Jail and Home

Guard of Government of Maharashtra, constructed prior to 1940, the Floor Space Index

shall be 2.5 on the gross plot area or the FSI required for rehabilitation of existing

tenants plus incentive FSI as specified in Appendix-III whichever is more.

Note:- The development of land for Department of Police, Police Housing Corporation,

Jail and Home Guard of Government of Maharashtra shall be permitted by the

Commissioner after due approval of the committee mentioned in Note-3 below

regulation 33(3)(A).](26)

(26) This new clause was added in Regulations no. 33(7) vide sanction under

section 37(2), from UDD in state Govt. under No. TPB 4303/500/CR-61/2003/UD-

11:Dated 27th February, 2004 by deleting the first para of Existing Regulation 33(7)

33 (9) [Repairs and reconstruction of cessed buildings and Urban Renewal Scheme.- Forrepairs and reconstruction of cessed buildings and Urban Renewal Schemesundertaken by the Maharashtra Housing and Area Development Authority or theMumbai Housing and Area Development Board or the Corporation in the Island City

the F.S.I. shall be 2.4 times that permissible under these Regulations.](11)

(11) Existing proviso in 33 (9) is deleted vide Government Notification No. TPB

4391/1681/CR-188/91/UD-11 Dt. 25.01.99

[(9) Repairs and reconstruction of cessed buildings and Urban Renewal Scheme: Forrepairs & reconstruction of cessed buildings and Urban Renewal Scheme undertakenby the Maharashtra Housing and Area Development Authority or the Mumbai Housingand area Development Board or Corporation in the Island City, the FSI shall be 4.00 or

the FSI required for rehabilitation of existing tenants / occupiers, whichever is more.

Note : – All Regulations / modifications mentioned above shall not be applicable to the

areas which are affected by Coastal Regulations Zone Notification issued by Ministry

of Environment and Forest, Government of India vide Notification dated 19 February

1991 and orders issued from time to time. ](28)

] (28) These words are added vide Government Notification No. TPB 4391/1681/CR-

188/91/UD-11 Dt. 25.01.99

 



Follow Redevelopment rules before signing redevelopment deal

 Incase you need any support for Redevelopment call us on 98335 45366 or email us on contact@redevelopmentpmc.com
With property prices in Mumbai sky rocketing, it’s tempting to hand over your old building for redevelopment. Redevelopment PMC offers a check list before you sign pact with a builder

APARTMENT owners in old buildings have landed a windfall, thanks to runaway property prices and an increase in floor space index — the ratio of permissible built-up area to plot area. Developers are now approaching residents in old buildings for permission to put up a new construction with more apartments in exchange for money or a larger house. Following are some basic facts you need to check with respect to redevelopment before you give your consent to the developer.

HAS THE BUILDER GOT THE CAPITAL?

A redevelopment project is highly cash intensive. The developer has to come up with the cash to fund a one-time settlement or to foot rentals for the period of construction in addition to the actual cost of construction. “The builder should have huge cash surplus, otherwise society members would be in trouble with respect to their stop gap accommodation.

WHAT’S THE COMMERCIAL GAIN?

“Before you negotiate with a developer, you need to establish the market value of the property you will receive on completion of redevelopment. This is a better approach than quoting a random figure to the builder that would make them feel short changed or the high amount would make the builder shy on the new project,” says Ashutosh Limaye, associate director (strategic consulting), Jones Lang LaSalle Meghraj. “The society members should consult a Redevelopment PMC  and get a feasibilty report . The PMC would do the necessary calculations to check on the commercial gains for the society and builder.”

NEED FOR AN AIR-TIGHT AGREEMENT

You should appoint a PMC before signing a contract with the builder. The contract should clearly mention the obligations of the builder and the society members and the penalty or consequences of any breach of the contract by either of the parties. The housing society should insist on a bank guarantee, which would take care of monetary compensation because of a delay in the project. The agreement should also mention the time of completion of the project, the size of the new houses, the mode and the nature of monetary compensation, if it’s a one-time payment, reimbursement of rent or a mix of both. “It usually takes a year for a builder to convince the society members and take an in-principal approval. But society members should ensure the timely completion of the project, which is the most important detail to be mentioned in the agreement,” Mr Narain adds. Secondly, it should clearly state the nature of temporary alternate accommodation and mode of rental payment/reimbursement. Finally, it should include member’s choice of new flat, parking, entitled area, etc.

WHAT ARE THE TAX IMPLICATIONS?

Unlike buying a home, there are no standard tax guidelines for redevelopment cases. “It depends on the agreement. Ideally, the members of the housing society should show a copy of the agreement to a chartered accountant before preparing the final draft,” says Vaibhav Sankla, executive director, Adroit. Broadly, there are three main tax issues. One is capital gains tax, which could arise out of exchanging the old house for the new one although the house is built on the same piece of land. Under Section 54, you have to invest the amount of capital gains in a residential house within two years from the date of sale. Second is the tax treatment of the upfront lump-sum payment. “If that payment is treated as capital receipt, it’s exempted from tax. On the other hand, if it’s treated as revenue receipt, then the amount is taxable in the hands of society members. This again depends on how the compensation is worded in the agreement,” Mr Sankla adds. Thirdly, there is no clarity on the tax treatment of the rent reimbursed to society members by developers. “There are a number of litigations lying in courts with respect to taxability of monetary compensation and capital gains arising out of redevelopment. Hence, clarity is still awaited as it’s an evolving issue,” he adds.

BUILDING BLOCKS
> AVOID START-UP builders for redevelopment projects. Redevelopment projects require a huge cash pool.
> EVERY SOCIETY member should get a clarity of his own situation. If you have mortgaged your house with the bank for a home loan, mention it to the developer. If he promises to help you pay your dues from your share upfront, ask for a written commitment.
CONSULT A tax expert to check the tax implications on the monetary compensations as well as capital gains arising out of redevelopment.
> APART FROM the size of the house, find out what would be the society maintenance and other monetary outgoes in the new flat.
> ONCE THE agreement is accepted in terms of area and corpus fund, it cannot be revised.
> IF THERE are multiple bidders for redevelopment, you can ask the builder to give a bank guarantee to evaluate his financial strength,    and the ability to complete the project within a stipulated deadline.  

Call us if you need any help in Redevelopment for your society +91 98335 45366 or contact@redevelopmentpmc.com

We have Redevelopment projects running in Borivali , Andheri , Juhu , Bandra , Santacruz , Malad , Goregaon, Vileparle

Redevelopment FSI for old city bldgs hiked – Mumbai

Old and dilapidated buildings, constructed before 1969, will get a floor space index of 3 for redevelopment. Chief minister Prithviraj Chavan cleared this decision on Monday. He had put this decision, taken by his predecessor, Ashok Chavan, on hold. The former chief minister had announced this deci sion in the Legislature in July 2010. It was notified in November 2010, just before he quit following the Adarsh scam. The FSI of a building is the ratio of the built-up area to the total area of the plot.

The FSI for redevelopment of old buildings in the island city is 2.5. Hiking this FSI to 3 will trigger a frenzy of real estate activity.

There are 16,000-odd old, cessed buildings in Mumbai. These buildings pay a cess to the Maharashtra Housing and Area Development Authority for their maintenance. The state had categorised them as A, B and C, depending on the age of the construction. Earlier, only buildings in the A category — those built before 1940 — could be redeveloped with incentive FSI.

For Redevelopment Queries please call us on 98335 45366 or email us contact@redevelopmentpmc.com

 

Source : http://www.hindustantimes.com/Redevelopment-FSI-for-old-city-bldgs-hiked/Article1-662501.aspx

Redevelopment of Old Buildings

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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 ofstamp 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.

Major Aspects In Redevelopment – Mumbai

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Major Aspects In Redevelopment
v           Development Agreement with Developer
         The managing committee of the society, on passing of the resolution of appointment of developers at the Special General Meeting shall execute the development Agreement within one month of date of the said resolution, with the selected developer on the basis of terms and conditions approved by the members in the Special General Meeting under the consultation and guidance of the Architect/Project Management consultant. The Development Agreement shall contain other terms as under in addition to the terms and conditions recommended by the Architect, Project Management consultant and the approved Special General Meeting.
·         Redevelopment of the building shall be completed within two years and not later. In particular circumstances it may take longer but shall not exceed 3 years.
·         The Developer shall provide a Bank Guarantor of 20% of the total cost of the redevelopment Project.
·         The Developer shall make provision for temporary alternate accommodation in the same area for the members who will be vacating the premises or shall make provision for monthly rental plus deposit to be paid to all the members of the society if they so agree or shall make provision for temporary alternative accommodation in the Transit Camp.
·         Development agreement shall be registered under the Registration Act, 1908.
·         New members, on completion of the project shall be admitted in the Special General Meeting. As members of the society.
·         Agreement must specify the carpet area to be given.
·         Rights to the redeveloped building of the society given to the builder are not transferable.
·         Flat owners shall vacate the premises only after obtaining all legal documents and permission of the competent Authority for redevelopment of building.
·         In case of one who is in possession of flat/premises and who is owner of the same, his right of ownership shall not be disturbed.
·         If there arises any dispute in the redevelopment of building agreement executed by the developer, Architect and society, it shall be resolved under the provisions of Section 91 of Maharashtra Co-operative Societies Act, 1960 and such provision shall be made in the development agreement.
v           Allotment of flats in new building
Allotment of the flats shall be given in the new building in the same manner in which the original flats were i.e. the floor; the location shall be allotted after the receipt of occupation certificate. If it is necessary to flats by a lot system, it shall be allotted accordingly but only after completion of building which is ready for occupation and members are ready and willing to occupy their premises. Allotment shall be done in the presence of an authorized officer of the Register. The developer shall make arrangement for video recording of the same.
v           Sanction plan of new building
         Sanction plans shall be obtained from the Municipal Corporation or Competent Authority who has the right to sanction the plans and shall be put before the special General Meeting. If any member wants to have any certified document, he shall make an application and shall also pay the requisite amount for a copy of the document to the secretary of the society; the Committee shall be responsible for providing required information to the members.
v           New members, Funds Etc.
«           New Members
         Additional members who have purchased new units in the redeveloped building/s should be made new members in the existing society. The Registrar concerned is to be informed (as soon as the development agreement is signed) of likely new members as soon as all the formalities are completed. The co-operative department should be given the full membership list with particulars. 
     
             New Share Certificates should be issued to the incoming members. The additional area and revised flat area should be accurately incorporated in the existing records of the society.
«           Funds of the Society
         The existing sinking fund belongs to the old members as Sinking Fund Certificates have been issued to them. Other Funds can be mutually agreed upon and distributed or equivalent contribution as one-time payment can be obtained from new members so that equality is maintained.

Procedure for redevelopment of co-operative housing societies

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P.P. What is the future for the redevelopment of co-operative housing societies?

A.S. The future of redevelopment in Mumbai city is very bright since there are constraints on the availability of open land within the city and suburban limits coupled with fast growing demand for houses and shortage of housing stock. Besides there are no. of other reasons.

There are thousands of buildings which are in bad shape and dilapidated due to their age, at mospheric wear and tear and other reasons. They have reached a stage where it is not possible to carry out structural repairs and rehabilitation as the same are not economically viable and may not be guaranteed for more extended service life.
Redevelopment of such old building has become a necessity since many buildings collapse each year, killing or injuring no.
of people.

The other reason being the requirement of an extra space by the society members due to increase in the no. of family members.

Also the Government has allowed incentive FSI for carrying out redevelopment schemes in the city as well as in suburbs.

P.P. Does the process take too much time?

A.S. The redevelopment process takes time which includes the following Stages.

1 Consent of society members 2 Extending EOI (Expression of Interest) by society 3 Furnishing documents to developer 4 Addressing society problems 5 Appointing consultants 6 Tendering/ short listing 7 Selection of best option 8 Extending LOI( Letter of Intent) 9 Deal structuring 10 Municipal approvals 11 Execution of DA & POA 12 Shifting to Alternate accommodation 13 Demolition & re-construction 14 Granting possession 15 Admission of new purchaser as the members of Society 16 Final handing over to the society.

Since The redevelopment work is of common interest, it requires the major decisions to be taken by the society with the consent of general body. Necessary resolutions should be approved in the general body meetings.

Recently the government of Maharashtra has issued specific guidelines to streamline the process of redevelopment so that the problems in the redevelopment can be eliminated at the initial stage resulting in the reduction of the time required for the redevelopment process.

P.P. What are the remedies with society if a builder does not keep up the promise?

A.S. The society should hire a professional and competent advocate, should be careful in drafting the redevelopment agreement and should not leave the same to the developer. The terms and conditions of the agreement should legally and practically take care of the in terests of the society and each of its members, and should ensure that a default by the other party is unfavourable to him only.
While drafting, one needs to visualise every possible setback and should provide answers and remedies against possible eventualities so that the builder’s interest in completing the project continues till the end.

The bank guarantee should be drafted simultaneously, along with the redevelopment agreement. The draft of the bank guarantee should be simple and not tied up with conditions. it should state that except calamities like floods, earthquakes or a war, the reconstruction will be completed in the specific time, or at the very least, within the grace period.
Failing this, the guarantee would be invocable. The society should take PDC for the future rent and compensation at the time of vacating.

To ensure that the builder completes the reconstruction project, he should be permitted to give possession of his sell portion only after offering possession to the existing flat owners.

The development agreement should be properly stamped and registered as an unstamped and unregistered document is not enforceable in law. Every detail pertaining to the construction specifications, construction and material, amenities should be specified in the redevelopment pact. Anything that is vague will work against the interest of society members. The DA should have a provision of arbitration.

TDR should be loaded in the name of society before vacating of the premises but after execution of the development agreement and consent of all members in respect of the development agreement and the proposed plans. It is one of the steps to safeguard interests of the society. Stamp duty provisions relating to TDR transactions need to be complied with.

The society should appoint an architect or engineer for the verification of their carpet area and supervise the quality of construction, amenities promised by developer of the proposed building. The architect should physically verify the area once the typical floor slab is casted.

The approved plans should be submitted to the society within specific period after approval and to the architect to verify periodically that the construction activities are carried out as per the approved plans.

P.P. What are the advantages of Redevelopment?

A.S. There are many advantages. for various bodies. For people, for government and for the local Municipal Corporations as well.

The advantages for the developers are that, There is no huge investment regarding the TDR of such properties unlike new plot development, these projects are always with clear title.

Though the time frame for the agreement procedure from the occupants or society members is more and the matter also requires frequent dealings with lawyers and court etc., the investment for such projects happens to be much lesser.

The society gets, Better standard of living and Latest amenities for the members.

Better level of infrastructure and services like, New better construction and elevation Grand Entrance Lobby and Lifts of reputed make Better Productive Plan for the New Flats More open spaces along with recreational facilities Separate Society Office / separate Toilets available for servants Provision for Seismic design for the building with Fire fighting systems, Health Club and Gymnasium with Ample Car Parking.

The other advantages being Generation of corpus for society, Increase in flat value ­ More saleable value of the flat for the same carpet area as of the existing building since the structure is new with provision of modern amenities and improved life style.

Maintenance of inherent features of existing project, No obstruction of the view, proper air ventilation catered in layout, Natural light catered in planning, Privacy of the building is maintained and a stand-by generator facility.

Since all the redevelopments are providing either basements or podiums or stilts for parking the vehicles of the occupants, the traffic blockages due to vehicle parking on the road can be less thereby assuring better conditions for the traffic and lesser problems for the Municipal corporation and the other departments related.

Due to redevelopments Govt. gets benefited with additional new taxes.

P.P. What best offers normally societies expect from a developer?

A.S. Society expects one additional room per flat.

Compensation, so that the additional maintenance and the normal furniture expenses are covered.

Reimburse ment of expenses necessary for the alternate accommodation till the new flats are handed over.

Modern amenities and quality construction with Parking facility and Modern elevation and Better usable planning.

P.P. If Society does not have conveyance or any other relevant documents, what are the remedies?

A.S. Though the government is drafting the procedure for deemed Conveyance, the society should appoint / hire Professional competent Advocate having expertise in Conveyance Cases for legal solution.

The following property documents can be obtained from respective departments Property Card and CTS Plan from city survey office Old Building approved Plans and other permissions from BMC office Property tax paid From BMC’s Assessment Department. ULC order from Collector’s office Non-Agricultural Order and N.A. Tax Paid Receipt from Collector’s office DP / TP remarks from respective departments Registration receipt, Stamp duty paid proof from the Registrar’s office Registered conveyance / Index II from the Registrar’s office Search report from an Advocate And Title Clearance Certificate about the property by an Advocate.