In Focus

Legal Facilities To Modify Existing Redevelopment Proposals

By Gajanan Khergamker

It isn’t that incentives in FSI are offered only to fresh proposal. Even existing proposals, housing societies of landlords or occupiers may convert their earlier proposals in accordance with the modified regulations, provided the redevelopment scheme is in progress and has not been completed, i.e. where full occupation certificate is not granted.

The additional FSI is provided only subject to submission of a licensed structural engineer’s certificate for structural stability. The submission must ascertain that the building is designed to take the additional load for constructing additional FSI, if granted. It should also certify the feasibility for structural modifications i.e. it should be feasible to convert the tenements earlier proposed with180 sq. ft. carpet area into tenements of 225 sq. ft. carpet area.

Higher FSI does not automatically becomes permissible in cases where construction is already underway as per old plans, unless a provision was made in the plans, foundation, etc., for the subsequent increase in area of rooms or the number of floors, without endangering the structural stability of the buildings.

In order to simplify the cumbersome process for granting NOCs for redevelopment, the procedure of issuance of letter of intent prior to the issuance of NOC has been completely omitted. It is no longer necessary to obtain a letter of intent. Now, the landlord or co-operative housing societies or occupiers can directly submit their proposal for the redevelopment of their old cessed properties in A to G wards of Mumbai but as per the prescribed format attached, along along with required documents and information.

After the proposal complete with documents is received, it will be scrutinised by the Board and an NOC for redevelopment granted after the Board is satisfied that all requirements are fulfilled by the applicant and after approval has been given in the MBRRB meeting. For each proposal, a scrutiny fee of Rs. 5,000 or whatever amount fixed by the Board from time to time, will be charged.

After all the documents have been received along with application and all legal and technical requirements completed, the NOC will be issued within three months. In case, even after this, the NOC-holder fails to start the redevelopment work within 12 months from the date of issue of NOC, the Board reserves the right to cancel the NOC.

The NOC-holder is expected to complete the construction of new buildings for the rehabilitation of old occupiers within 30 months from the date of issue of NOC. Should he fails to do so, extension to the time limit of 30 months may be granted by the Board, depending on the merits of the case and on payment of an extension of fee of Rs 5,000 or an amount as decided by the Board.

On being granted the NOC for redevelopment, the onus of carrying out repairs to the old cessed buildings at his own risk and cost, whenever such repairs are deemed to be necessary as decided by the repair board, rests on the NOC holder.

An Occupation Certificate for the free sale buildings will be given after all the old occupants, including those who may be staying in the Repair Board’s Transit Camps, have been rehoused in the newly-reconstructed buildings.

Concessions/benefit granted by the government vide its notification dated 25-1-1999 are quite attractive and make the scheme for redevelopment of old cessed properties economically viable. The benefit of the new scheme of redevelopment are expected to be exploited at a large scale by landlords and co-operative housing societies thereby aiding the replacement of old and dilapidated cessed buildings with new, well-lit and ventilated self-contained flats.

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