Published On: Wed, Aug 11th, 2010

MHADA wants colonies to redevelop, sets time limit

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By A Staff Reporter

The Maharashtra Housing and Area Development Authority (MHADA) said that it is working on a grand new plan for redevelopment of old colonies spread across the city if colonies do not take immediate steps to utilise the extra floor space index granted to it.

The announcement that reads more like a warning signal will certainly make many housing societies, which are yet to be redeveloped, sit up and take notice. The minister of state for housing, Sachin Ahir said MHADA building societies must tie up with the builders of their choice and go for redevelopment or else the government would take upon itself to rebuild the colony if the societies fail to adhere to a cutoff time period.

“We are working on setting a time frame of about a year,” said Ahir categorically, indicating that the onus was now on MHADA colonies and its societies to act fast and make the best of the situation that would allow them to have bigger and better apartments.

MHADA has 56 old colonies built more than 50 years ago, some located in the upscale areas such as Colaba, Tardeo, Prabhadevi and Dadar. The bigger and larger layouts are in the suburbs of Goregaon (Sidharth Nagar, Jawahar Nagar, Unnat Nagar), Chembur (Tilak Nagar), Ghatkopar (Pant Nagar), Vikhroli (Kannamwar Nagar),
Bandra (Kherwadi and Gandhi Nagar), Khar and Santacruz.

These old colonies have an FSI of only 1, but following the amended Development Control Regulations (DCR) of 2008 they can have a total FSI of 2.5. Old colonies, hence, stand to gain an increase of 1.5 FSI and if utilised as stipulated translates into a spacious living abode.

Some old colonies are already in the process of redevelopment as is evident by the newly constructed tall towers that have come up equipped with club houses, parking areas and other facilities that have become a norm with swanky structures.

While others are in the process of working out details with developers, many societies seem reluctant to go all the way for redevelopment squabbling over personal disputes or simply turning greedy in the hope that developers may offer huge sums by way of corpus funds.

“Waiting for a bigger bonanza could well turn out to be a nothing but a dampener,” said advocate Sanjeev Kanchan, who is well versed on housing matters.The government can exercise its discretion of taking away any unutilised or surplus FSI since the land still belongs to MHADA, he explained.

Besides, if the government chooses to redevelop the housing societies can say bye-bye to receiving a corpus fund or adequate rent for an alternate accommodation. Private developers provide such facilities and added benefits. 411

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  1. minesh says:

    Property Sales at its low in and around Mumbai
    Aug 13, 2010 General Info

    Mumbai A staggering 96.3 million square feet of residential space — or about 80,000 homes — is lying unsold in the Mumbai Metropolitan Region (MMR), the highest-ever inventory pile-up for the area. Sales are down 38% over last year.

    Data compiled by real estate research firm Liases Foras show that at the end of June 2010, the unsold residential space in Mumbai, Navi Mumbai, Mira-Bhayander and Thane was nearly twice the 58.9 million sq ft that was available in the MMR in June 2008. Liases Foras CEO Pankaj Kapoor said if flats that are currently lying with investors, which will eventually return to the market are taken into account, another 50 million sq ft will be added to the unsold space.

    Analysts see in the glut a throwback to the circumstances that led to the realty slowdown of 2008-09. Builders are again looking to raise money through IPOs, and the pricing of flats is valuation- rather than sales-driven.

    “Besides high valuations, the 4% VAT and service tax on under-construction flats, and the huge difference between carpet area and notional super built-up area have created an unfriendly environment for home buyers,” Kapoor said.

    R V Verma, executive director of the National Housing Bank, said the recent increase in home loan disbursements has been offset in the metros, and particularly in Mumbai, by rising property prices. “The investor-centric approach is fueling speculation in prices,” he said.

    The average price of residential property in the MMR works out to Rs 7,747 per sq ft; in Mumbai itself it is an eye-popping Rs 13,798 per sq ft. A 1,000-sq ft carpet area flat in Kandivli, which cost Rs 70 lakh 15 months ago today costs Rs 1.6 crore, Kapoor said.

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