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 muchgreater 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.
Why Redevelopment is required?
[a] 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 groundfloor 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
[b] 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 of
stamp 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 theagreement, 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
Cooperative Societies Act. 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 institutions. 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.
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 andsocial 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.
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