After a lot of dithering, the tempo is picking up again. The new BMC commissioner Sitaram Kunte along with the High-rise Committee chairman Shafi Parkar have recently approved 78 proposals for developing skyscrapers.
A skyscraper is defined as buildings having a height of over 70 metres. At roughly 3 m per floor- that would work out to be a 25-26 storey building.
If one goes into comparison mode, then cities like Shanghai, New York and many other key cities have many more than Mumbai. According to some sources, Mumbai has barely 30 buildings of 100m or more.
With the severe space crunch, there is no option but to get taller !
However some basic elements need to be kept in mind. Can the infrastructure around these mighty towers support the development.
The Ministry for Environment & Forests had recently laid out new rules for the open area around each such structure. The EAC recommended that the height of the building should be linked with the width of the road (right of way ) from 18m to 45m and above. Also the distance of Fire Station from the building to handle emergencies and evacuation was important
The fire-fighting department has to get its act together to look at the new scenario in the future. As of now the tallest fire-fighting ladder in the world is just 120m. Mumbai hopes to get a 98m ladder soon.
With regards to getting necessary permission- the High-rise Committee approval is not necessary for structures below 120 m. Structures between 120 & 200 m would require a closer scrutiny by Indian experts from institutions like VJTI & IIT. Those above 200m would require international consultants to clear them.
Mumbai’s skyline is now all set to change! Sadly does that also mean...more expensive flats only for the elite ??
Among the many complaints made by the builders lobby, why prices of flats have to remain so high, is that the initial cost of purchase of land is so, so very high.
Now this is quite true. Those with any land, have really grabbed their pound of flesh and made huge fortunes by selling it off at the highest price.
To finally pay the price for the land, most often the builder has to take loans, at 15-18% to cough up the huge amount.
Anyway, finally the land is in his hand... then comes the agonizing wait for government permissions ! One year, two years !!
Till then the interest keeps building up, adding substantially to an already high cost !
One way to get around the problem is to go in for reconstruction of old buildings.
Mumbai has a huge number of buildings waiting to be pulled down and resurrected !
redevelopment of existing housing projects provides a win-win situation for both the developer and the flat owner.
In south Mumbai alone, at least 19,000 buildings have been declared dilapidated, which need to be re-developed immediately. At least 1,000 buildings get added to the list annually, and the number continues to grow.
The existing norms of redevelopment introduced by the Maharashtra government are beneficial for both the owners and the developers. The freebies provided by the Maharashtra government have drawn a lot of established players to redevelopment, apart from several local players. At present, as per the coastal regulatory zone (CRZ) regulations, around 2-2.5 floor space index (FSI) is allowed.
Many of the bigger players along with the smaller ones have jumped into this space. Hiranandani, Godrej Properties, Mantri Group etc
However Redevelopment of projects also face several hurdles.
For redeveloping a particular project, tenants, flat owners as well as the housing society have to agree before it goes for redevelopment. It is a big hurdle to get all the parties to come together and agree on a redevelopment plan. This itself could go on for years before everyone is finally bought on board.
Redevelopment of housing societies is usually burdened with bitterness and complaints of high-handedness and corruption against the Managing Committee.
Another big problem is that there is no law for implementing redevelopment of projects. In one of our earlier articles, we had mentioned that SBI was considering offering building societies the ability to take loans for “self-development”. This would be an ideal solution.
The building society can invite experienced contractors to build the building and then by selling of the extra space created, provide either bigger spaces or newer amentities to the building residents.
STAGES OF REDEVELOPMENT 1. Offer letter to the society 2. Terms and conditions with the society 3. Agreement with the society 4. Sanction from MCGM in favour of the society 5. Loading of TDR in the society’s name 6. Obtaining the IOD 7. Shifting of the members 8. Demolition of the building 9. Obtaining the CC 10. Construction of the new building 11. Obtaining the OC 12. Shifting the old members
Offer letter to the society: The Housing Society is required to advertize in 2 leading news papers inviting the sealed tenders from the Developers and a Redevelopment Committee is formed to shortlist atleast 3 Developers on merits and the comparative data is placed before the SPGM for final selection. The selected Developer is informed accordingly and his terms are invited in writing as an Offer letter to the society Terms and conditions with the society: The first step towards the re-development is agreeing on the basic terms and conditions between the members and the Developer. The broad terms and conditions will include extra area, corpus money, shifting charges, alternate accommodation, time of re-development, amenities in the new building, etc.Finalizing the plans with members: After due consultation with all the members, the plan will be made to suit the requirements of the existing members and will be approved by them before applying for sanction from MCGM Agreement with the society: The execution of the development agreement will be done once the above two points have been cleared by both the parties and after the draft copy of the agreement have been approved by the solicitors of both the parties. It is possible to appoint a common solicitor so as to reduce the time in execution of the document
Sanction from MCGM in favour of the society: After the execution of the development agreement, plans are put up for sanction from MCGM with regards to the entire layout as well as the concession plans in favour of TWO FSI (i.e. plot area + TDR purchased from open market). This step makes the society feel safe and confident towards the Develop
Loading of TDR in favour of the society: On receipt of the plans from MCGM approving the loading of TDR, the Developer will purchase the TDR from the open market in the name of the society and get the same deducted and loaded from MCGM. This step is taken with the intention of making the society feel secure about the entire development process Obtaining the IOD: After the TDR is loaded, the IOD is obtained from the MCGM, the Developer then starts fulfilling all the conditions as mentioned in the IOD before obtaining the Commence CertificatShifting of the members: The members will feel lot more confident after the IOD is been obtained from the MCGM towards the entire development of TWO FSI. The members will now shift into their alternate accommodation as a pre-requisite before demolition of the building which is a must before obtaining the CC from MCGM
Demolition of the building: Once the members have shifted into their alternate accommodation, the demolition of the building will take place either all the wings simultaneously or phase wise depending upon the scheme of re-development. Usually about three months are given to the members from the date of execution of the development agreement before asking them to shift to the alternate accommodation
Obtaining the CC: The IOD approval and demolition of the building will be followed by the issue of the CC (plinth level) by the MCGM which shall enable the Developer to start the construction work and after the plinth lines are verified by the MCGM officers, the further CC is granted for the complete building
Construction of the building: The building construction work will began in full earnest as per the approved plans by the MCGM taking into consideration the various safety factors to be considered during the construction work. The quality and the amenities will be provided as per agreed terms and conditions
Obtaining the OC: The last step before the construction work is termed as complete is obtaining the Occupation Certificate enabling the Developer to allot the occupation to the old as well as the new memberShifting the old members: On receipt of the Occupancy Certificate the Developer can lawfully allow the possession of the flats to be taken over by their owners
DUTIES AND FUNCTIONS OF THE DEVELOPER 1. The Developer to demolish the building existing in the plot and construct new multi storied buildings taking into account the earthquake resistant factors as directed by The Municipal Corporation of Greater Mumbai. The new building should have stilt for car parking and should consist of _____ stories as per approved plans. The final plans are to be prepared after due consultation with the managing committee and understanding their requirements.2. The Developer shall be responsible to obtain all the necessary approvals from The Municipal Corporation of Greater Mumbai and all other statutory and Government offices and departments which will include:1.Development Planning Remark or Town Planning Remark: MCGM (Dev. Dept.)2. Survey of the entire plot with regards to the area and topography of the plot,existing plot boundary and existing structures (Developer’s Architect)3.Intimation of Disapproval (IOD): MCGM4.Property Tax Assessment NOC: MCGM (Assessment Department)5.Hydraulic Engineer No Objection Certificate: MCGM (Hydraulic Department)6.Storm Water Drainage No Objection Certificate: MCGM7.Sewerage No Objection Certificate: MCGM8.Traffic Deptt. of Municipal Corporation of Greater Mumbai No Objection Certificate:MCGM9.Urban Land Ceiling NOC: Competent Authority in Collector's Office10. Tree No Objection Certificate: MCGM (Tree Authority)11.Non-Agricultural Permission: Collector's Office 12.Civil Aviation No Objection Certificate: Airport Authority of India13.Pest Control No Objection Certificate: MCGM (PCO)14.MTNL No Objection Certificate: MTNL15.Chief Fire Officer's No Objection Certificate: Fire Department Office 16.Commencement Certificate: MCGM17. Lift Inspection No Objection Certificate:Inspector of Lifts, PW18. Occupation Certificate (OC):MCGM19.Water Connection Certificate under section 270A:MCGM20.Drainage Completion Certificate:MCGM (Water Department)21.Building Completion Certificate (BCC):MCGM22.TDR Loading:MCGM23.Building Demolition Work:Contractor appointed for demolition work24.Soil Testing Report:The Concerned LaboratoryPlease ensure to collect all the listed certificates from the Developer/Developer as the same must be with the custody of the Housing Society once the redevelopment of the property is completed and the occupancy certificate is issued by MCGM to rehouse the members.3. The Developer should provide the following infrastructure after the completion of the re-development work:a. Complete paving around the building finished with suitable materialsb. Storm Water Drainc. Sewerage linesd. Security arrangements e. Garden and landscaping (wherever possible)f. Pipe gas line (as per availability)g. Internet facility (as per availability)h. Society officei. Adequate car parking spacesThe Developer has to provide extra areaover and above the existing carpet area to all the members free of cost in the newly constructed building. The flower bed as open balcony area should be provided as permitted by The Municipal Corporation of Greater Mumbai. (Area will be approx sq.fts.)4.The Developer should pay the society/individual member, a corpus fund of Rs……..towards granting of development rights. The above amount is helpful in paying all outgoings of the existing members in the newly constructed flats. The corpus amount is worked out on the basis of Rs……..per sq.fts on the existing carpet area.5.The Developer should provide displacement compensation towards temporary alternate accommodation to the affected members during the construction work at the rate of Rs…… per sq.ftson the existing carpet area. The compensation has to be paid from the time the vacant possession is given by the members for demolition till the construction of the new building/s is/are complete and the peaceful possession of the new flats given by the Developer.6.The society shall accept and admit the prospective/additional flat owners of the newly constructed building/s as members of the society and treat them at par with existing members.7.The Developer should prepare a tentative layout of the new building which has to be shown to the members as and when required.8.The Developer may tie up with leading financial institutions and banks and arrange for necessary approvals for housing loans for the existing members and prospective clients.9.The Developer should complete the entire re-development work within a period of ___ months or as agreed with the Society after all the legal formalities and Municipal approvals are obtained. The initial Municipal approvals will take about three months depending upon the existing rules and regulations governing the re-development work.The task of satisfactory completion of redevelopment of any Housing Society and to get back their members in their dream houses is not difficult provided the Office Bearers and the Committee Members are honest and justify their respective posts in the welfare and well being of the members of the Society.
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