MAHARASHTRA LOSES OPPORTUNITY TO GENERATE ABOUT 1 LAKH HOUSING UNITS AS ALSO REVENUE OF AROUND RS. 10000 CRORES
By Accommodation Times Bureau
By Anand Gupta
Hon’ble General Secretary
Builders Association of India
56 Colonies comprising 3701 buildings with 111659 Tenants owned by Co-operative housing Societies in MHADA layout are quite old and in very dilapidated conditions, Distressed MHADA Tenants seek Resolution
Majority of buildings owned by Co-operative housing societies in MHADA layout are quite old and in very dilapidated conditions. Among these do MHADA’s 56 colonies comprise 3701 buildings with 111659 tenants and out of these, merely 10 per cent have been redeveloped. It’s double blow for Maharashtra Sate which is losing an opportunity of creating the much needed housing stock of nearly 1 lakh units and at the same time losing revenue of around Rs.10000 crore that both would have been generated wide selling the additional FSI on a premium basis as per DC Regulation 33 (5) 2-C(ii).
It is disappointed over the Government’s regulations regarding the redevelopment of old and dilapidated buildings in the city and suburbs, which they say has brought to a complete standstill all such redevelopment projects since as early as September, 2010 leading to huge revenue losses to the state exchequer and MHADA (Maharashtra Housing Development and Area Authority) in the wake of unworkable DC Regulations. The rest 90 per cent projects have been stalled on account of the prevailing redevelopment regulations. The current policy puts the lives of lakhs of tenants in danger as most MHADA buildings are in a state of precarious condition and beyond any repairs. As there is already a slowdown in Mumbai’s realty sector and both the Government and the builders are reeling under tremendous pressure especially with redevelopment projects being stuck. We in BAI lamented the dismal scenario where neither MHADA nor the Housing Secretary not the Housing Minister are taking any initiative to get over this serious matter.
MHADA had allowed 2.4 FSI for redevelopment in view of the pathetic conditions of the buildings in MHADA colonies which were posing a danger to human life. However the societies were not getting offers to their redevelopment projects from good and reputed builders. This compelled MHADA to go for 2.5 FSI, encouraging developers and housing societies to complete the process of either appointing developers or entering into MOU or development agreement. However MHADA without any notice and due process of law and without consulting societies and developer, they have decided to opt to take the build-up are at the rate of 2:1 discarding the concept of FSI. Before changing the policy by MHADA, many societies have entered into an agreement with the developer for redevelopment of the respective society building and now come under difficult situation as MHADA is not accepting their proposal on premium basis. This hasty and unreasonable step has shocked the tenants whose dreams of moving into their new and safe homes are shattered. Most of the tenants in these societies are surviving on their limited income and are finding it difficult even to spend on repairing these old dilapidated buildings. In such circumstances, it is very hard to understand as to why MHADA does not announce as stable policy, so that everyone can plan for redevelopment. It is our since request to MHADA authorities to reconsider their proposal of taking built up area, if they really want the residents to get new hose. The very purpose of increase in FSI to provide new houses is getting defeated as the proposals become totally nonviable under the new rules. There are many colonies like Nirmal Nagar and Vijay Nagar at Bandra (E), Majaswadi at Jogeshwari, Tagore Nagar & Kannamwar Nagar at Vikhroli, Khernagar at Bandra (E) Colony in Chunabhatti, Oshiwara at Andheri, etc. are in very dilapidated condition and beyond and repairs and lives of tenants in danger condition.
A builder of India feels that since mid 2010, there is no proposal had been approved by MHADA on our attempt to meet vice president even after giving an appointment many times, he has cancel the appointment one or another reason and avoiding solution to the matter. On our meeting to Housing Secretary, we found Mr. Gautam Chatterjee enjoy their reputation as honest but showed his helplessness to resolve the matter as according to him he still hopeful of getting housing stock on 2:1 formula which he has failed continuously September, 2010 till now.
Other than BAI write a letter to CM and all MLA of Mumbai, Maharashtra Societies welfare Association also wrote letter to Hon’ble Chief Minister on 25.07.2012 pointing out the position of all dilapidated building and loss of opportunity to generate about 1 Lakh housing units as also revenue of around Rs.10000 crores giving all facts and figure but it has got not any result. Subsequently to this all tenants went to political parties and Shivsena as a social activist did took up this matter and had a matter with C.O. of Mumbai Board, V.P. MHADA Authority, Housing Minister and Chief Minister and it is surprise that all the people were in agreement to resolve this matter but have failed to take the fruitful solution.
We, Builders of India sincerely feel that in case Government of Maharashtra is kindly interested to increasing housing stock ultimately to reduce the prices by way of taking following actions:
1) Announce and create a 2nd New Mumbai across Nava-Shiva bridge (planned & proposed) in Raigad District. In Raigad district there is an area of 7200 k.m. existing very near to South Mumbai. This new area development can create huge housing stock with planned infrastructure. The new housing stock will be equivalent to present number of housing in the whole MMRDA region.
2) Government should come out with a time bound execution of 14 Lakh slum and on this 2000 slum plot, this can get you additional selling stock of more than 4 to 5 Lakh houses of 1 BHK.
3) Government should come out a time bound programmed of redevelopment of 16000 dilapidated “A” “B” & “C” categories ex properties. This 16000 building redevelopment will get another 150000 houses to be sold in the market. If all the suggestions of Builders of India are accepted, there will be an opportunity of multiple housing and correction in prices will be dramatically corrected and will get corrected for an affordable required by a common man.
4) Further adds that it becomes imperative for the Government to amend the 2:1 ratio and adopt a premium-basis policy as per the DC Regulation 33(5) for redevelopment of MHADA housing colonies and generate finance to create more affordable housing stock as required. The task of taking up and completing projects for old and dilapidated structures and providing houses for the poor and needy in MHADA layouts and to simultaneously generate revenue for MHADA is not difficult provided practicable policies are put in place. The need of the hour is to break the deadlock in the matter especially the one pertaining to redevelopment of MHADA housing colonies in the interest of the tenants.