will redevelopment of old building reduce the scarcity of housing in mumbai

8/19/2019 Will Redevelopment of Old Building Reduce the Scarcity of Housing in Mumbai

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REDEVELOPMENT OF OLD BUILDINGS

Introduction:

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 2% !"ensus

2##$. &ousing in urban areas assumes much greater significance, as it relates not only to basic

shelter needs but also pro'ides a facility to the citizens to access ser'ices and be part of the

de'elopment process. &ousing implies not only construction of bric(s and mortar) it includes the

supporting infrastructure, access to transport and employment opportunities.

Meaning:

*ede'elopment refers to the process of reconstruction of the residential+commercial premises by

demolition of the eisting structure and construction of a new structure. -his is done by utilizing

the potential of the land by eploiting additional -*, /S0 as specified under the e'elopment

"ontrol *egulations of Municipal "orporation of 1reater Mumbai !M"1M.uildings or

structures that indi'iduals and their family may li'e in that meet certain federal regulations.

ifferent housing situations 'ary for indi'iduals and may depend on age, family, and geographic

location. /or eample, a recent uni'ersity graduate in an urban en'ironment in the 3S may li'e

in a rented apartment whereas a middle4aged entrepreneur may li'e in a house with or without a

mortgage.

5nything that co'ers, protects, or supports another thing. /or eample, the casing of a des(top

computer is its housing component and can be made of multiple materials to protect the internal

components.

Type o! Rede"e#op$ent

*ede'elopment of old dilapidated building

*ede'elopment of 6ld Mhada "olony

%&y Rede"e#op$ent i re'uired

/or isting 6wners

-hough they are in dire need of etensi'e repairs, societies are star'ed of necessary funds

re8uired to carry them out. 6n the one hand, they do not ha'e the resources and epertise to

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handle the repairs on their own and on the other, the families of the members ha'e epanded and

they need larger space to accommodate themsel'es.

Reearc& Pro(#e$:

Mumbai suffers from an acute shortage of affordable housing. -his is due to high rate of

population growth as well as migration from 'arious other states of 0ndia. Mumbai, the

sprawling mega polis spread o'er 9## s8. (m, has seen its population grow at a rate which is

twice that of Maharashtra:s. -he problem of scarcity of housing needs to be sol'ed before any

crisis occurs.

*ede'elopment of old housing is considered as a preferable option by state and municipal

authorities. -his research study is based on problem of housing scarcity and if the problem can

be sol'ed through rede'elopment of old housing in Mumbai or not.

Reearc& O()ecti"e:

-o study the issue of scarcity of housing in Mumbai.

-o find if rede'elopment will create a'ailability of housing or not.

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*ouing S&ortage in Ur(an India + Statitic :

-he "ensus of 0ndia, 2##$ estimates that 27.;$ percent of total population li'es in urban areas of the country. 5 -echnical 1roup was constituted by the Ministry of &ousing < 3rban =o'erty

5lle'iation in 2##9 to assess the urban housing shortage. -he 1roup estimated that at the end of

the $#th /i'e >ear =lan !2##74#;, the total housing shortage in the country was 2.7$ million.

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Ur(an Popu#ation o! India

-he projected urban population in 0ndia as on $st March, for the years 2#$# to 2#2# as per "ensus of 0ndia, 2##$ is indicated in the table below. &ousing shortage city.

-he -echnical 1roup constituted by the Ministry in 2##9 to assess the urban housing shortage

has estimated that the total housing re8uirement during the $$th =lan period !2##742#$2 would

be 29.?@ million dwelling units including the housing shortage of 2.7$ million dwelling units at

the beginning of $$th =lan. Ao estimates as to housing re8uirements in the net ten years are

a'ailable with the Ministry.

-he population elhi, Mumbai, Bol(ata and "hennai, together with slum population and

percentage of population li'ing in slums, as estimated in the Slum =opulation 0ndia Series40 are

gi'en in table below.

,a-a&ar#a# Ne&ru Nationa# Ur(an Rene-a# Miion

-he "entral 1o'ernment is supporting the construction of housing for poor sections of the

society li'ing in urban slums. -he Cawaharlal Aehru Aational 3rban *enewal Mission

!CAA3*M, launched by the 1o'ernment in the year 2##? supports pro'ision of housing and

basic ser'ices to urban poor in slums in 9? specified cities under the Sub Mission asic Ser'ices

to the 3rban =oor !S3= and in other cities and towns under the 0ntegrated &ousing and Slum

e'elopment =rogrammed !0&S=.

-he schemes are demand dri'en and so far $?, #,9$$ houses ha'e been sanctioned and central

share of *s. 2#$@#.7D crores committed for the purpose. -he 1o'ernment has announced a new

scheme called *aji' 5was >ojana !*5> for pro'iding support for ma(ing cities slum free to

States that are willing to pro'ide property rights to slum dwellers.

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Mumbai must create $.$ million low income houses o'er the net decade #.;million to

rehabilate eisting slum dwellers and #.@million to house the population increase and migration

of low income segment.

Dra-(ac. o! o#d Bui#ding:

Eac( of ser'ices such as security, cleaning, and to operate pumps.

5bsence of common facilities li(e gymnasium and a society office.

3na'ailability of proper playing area for children in the compound.

=erennial lea(age in the structure and also in the o'erhead or ground floor water tan(s.

3na'ailability of ele'ators causing suffering to heart patients and the elderly.

5bsence of a proper entrance lobby.

*oom sizes being too small.

0nterior planning of rooms being unsatisfactory.

Eac( of attached toilets in bedrooms.

=lumbing+electrical lines lying open

Size of toilets being too small

Eow resale 'alue due to poor condition of the building

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For Bui#der/De"e#oper

uilders+e'elopers opting for purchasing land and de'eloping the same, incur huge stamp duty

cost on transfer of land. 0nstead rede'elopment of old building reduces stamp duty to a

significant etent. /or this they enter into de'elopment 5greement with Society. ntering into

such de'elopment agreement does not 'est any title of the land in the fa'or of de'eloper, butmerely authorizes the de'eloper to de'elop the land.

-he 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

de'elop the land on the owner:s behalf. 0n other words, in a case of de'elopment, the builder

constructs the buildings at his cost, retains some flats for himself to be sold in the open mar(et,

gi'es a few flats to the landowner and also pays him some monetary consideration. -he

de'eloper carries out this de'elopment wor( in the capacity of a constituted attorney of the

owner and not on his own behalf.

Eater, these flats are sold by the de'eloper in the open mar(et and from such sale, he ma(es a profit. -he rate of stamp duty in respect of de'elopment agreement being much less than that

payable on outright purchase, there:s a significant sa'ing in stamp duty cost. Eater, when the

building is actually con'eyed to a co4operati'e society or a company, the landowner and builder

become party to the con'eyance deed on which the stamp duty is payable and the same is also

registered.

Procedure !or Rede"e#op$ent o! an I$$o"a(#e Property:

-he consent of the society members must be obtained during society meetings. 6n or before the

eecution of the agreement, the society should hand o'er to the de'elopers, the copy of the

con'eyance deed in respect of the society:s property, along with certified copies of the property

register card, inde 00, latest electricity bill, water bill, municipal ta bill, A.5. ta bill in respect

of the society:s property and also, the copy of the registration certificate of society under the

Maharashtra "ooperati'e Societies 5ct, $D9#.

-he list of members with their choice of new flats and par(ing, area entitlement among others as

agreed upon in the new building should be prepared. -he terms about the pro'ision of

temporary alternate accommodation to the members during the construction period should also

be made clear in the agreement.

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0&a##enge:

0nability to assemble all members of the society at a single point of time, as some of the

members may not be a'ailable. Some flats may be mortgaged to a ban( or a financial institution

Some of the members may be interested in purchase of new flats at a discounted rate in the new

building.

-he title may not be clear, i.e. con'eyance deed of the land and structure is not eecuted in fa'or

of the society.

5niety in the minds of the members about possible delay in completion of the project after they

ha'e 'acated their old flats.

-he old documents of the members may not be traceable

Eac( of unity amongst the members

-he ta issues regarding rede'elopment are not clear to the society.

Fery high prices are epected on sale of old flats in the case of certain members who are not

interested in staying in the new building.

"orpus amount ta(es a long time to be fied by the society.

-he decision as to which member will get what type of par(ing ta(es a 'ery long time.

Go"ern$ent Ro#e:

-he rede'elopment under "* @@!7 and @@!D will continue, it is proposed to introduce thecluster or precinct de'elopment approach and to incenti'ize the same.

0#uter 1pproac&:

-he "luster *ede'elopment 5pproach has successfully transformed the cities of &ong Bong,

Singapore and Shanghai. 0t is proposed to adopt a similar approach for 3rban *enewal in

Maharashtra State. /or the rede'elopment of old buildings, it is proposed to underta(e cluster

de'elopment as strategy for epediting and to bring about planned de'elopment. 0n order to

promote cluster rede'elopment, it is proposed to gi'e higher /S0 to large cluster rede'elopment.

-he main objecti'es of the cluster approach will be as followsG4

-o transform the fractured de'elopment in to cohesi'e urban unit as laid down in

e'elopment =lan. -o pro'ide modern accommodation and social ser'ices which raise li'ing standards and

reduce disparities amongst different sections of population.

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-o pro'ide an en'ironment which permits the residents of such areas to li'e fuller and

richer li'es free of physical and social stress that are generally associated with haphazard

urban de'elopment. -o facilitate de'elopment and proper maintenance of infrastructure facilities such as

sewerage + storm water drainage += *oads which cannot be de'eloped because of the

present haphazard e'elopment -o generate maimum number of surplus tenements for rehabilitation of the occupiers

who are on Master Eist of M&55. -he fact that M&55 will play the nodal role in

the cluster approach and shall be a signatory to all the agreements will pro'ide greater

acceptability and credibility amongst the tenants and landlords.

,OINT VENTURE FOR REDEVELOPMENT PRO,E0TS:

-ill date, the *epairs < *econstruction oard of M&55 has been able to underta(e

rede'elopment of old and dilapidated buildings under "* @@!D /ew 6ther old and dilapidated buildings ha'e been reconstructed through pri'ate de'elopers under "* @@!7. 0n order to

accelerate the rede'elopment of old and dilapidated buildings, it is proposed to encourage

rede'elopment projects through joint 'entures in which M&55 along with the tenants,

landlords and pri'ate de'elopers, if necessary, will come together for underta(ing rede'elopment

of "luster. etailed guidelines for this scheme shall be issued by the 3rban e'elopment

epartment separately.

1DOPTION OF E1RLIER REPORTS:

-he problem of 3rban *enewal 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. -his problem has been studied in detail and

recommendations of Su(hthan(ar "ommittee and 5fzul pur(ar "ommittee ha'e been accepted

by

1o'ernment. 0t is now proposed to etend the applicability of these two reports to all Municipal

5reas of Maharashtra. -he concerned Municipal "orporation or "ouncil will adopt and

0mplement the principles enunciated in these reports with suitable local modifications. -his will

be monitored by the 3rban e'elopment epartment.

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O#d Bui#ding Rede"e#op$ent Ru#e 2 Rede"e#op$ent Regu#ation:

Stage o! Rede"e#op$ent:

$. 6ffer letter to the society

2. -erms and conditions with the society

@. 5greement with the society

. Sanction from M"1M in fa'or of the society

?. Eoading of -* in the society:s name

9. 6btaining the 067. Shifting of the members

;. emolition of the building

D. 6btaining the ""

$#. "onstruction of the new building

$$. 6btaining the 6"

$2. Shifting the old members

6ffer letter to the societyG -he &ousing Society is re8uired to ad'ertise in 2 leading newspapersin'iting the sealed tenders from the e'elopers and a *ede'elopment "ommittee is formed to

shortlist at least @ e'elopers on merits and the comparati'e data is placed before the S=1M for

final selection. -he selected e'eloper is informed accordingly and his terms are in'ited in

writing as an 6ffer letter to the society

-erms and conditions with the societyG -he first step towards the re4de'elopment is agreeing on

the basic terms and conditions between the members and the e'eloper. -he broad terms and

conditions will include etra area, corpus money, shifting charges, alternate accommodation,

time of re4de'elopment, amenities in the new building, etc.

/inalizing the plans with membersG 5fter due consultation with all the members, the plan will be

made to suit the re8uirements of the eisting members and will be appro'ed by them before

applying for sanction from M"1M

5greement with the societyG -he eecution of the de'elopment agreement will be done once the

abo'e two points ha'e been cleared by both the parties and after the draft copy of the agreement

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ha'e been appro'ed by the solicitors of both the parties. 0t is possible to appoint a common

solicitor so as to reduce the time in eecution of the document

Sanction from M"1M in fa'or of the societyG 5fter the eecution of the de'elopment

agreement, plans are put up for sanction from M"1M with regards to the entire layout as well as

the concession plans in fa'or of -W6 /S0 !i.e. plot area H -* purchased from open mar(et.-his step ma(es the society feel safe and confident towards the e'elop

Eoading of -* in fa'or of the societyG 6n receipt of the plans from M"1M appro'ing the

loading of -*, the e'eloper will purchase the -* from the open mar(et in the name of the

society and get the same deducted and loaded from M"1M. -his step is ta(en with the intention

of ma(ing the society feel secure about the entire de'elopment process

6btaining the 06G 5fter the -* is loaded, the 06 is obtained from the M"1M, the

e'eloper then starts fulfilling all the conditions as mentioned in the 06 before obtaining the

"ommence "ertificate

Shifting of the membersG -he members will feel lot more confident after the 06 is beenobtained from the M"1M towards the entire de'elopment of -W6 /S0. -he members will now

shift into their alternate accommodation as a pre4re8uisite before demolition of the building

which is a must before obtaining the "" from M"1M

emolition of the buildingG 6nce the members ha'e shifted into their alternate accommodation,

the demolition of the building will ta(e place either all the wings simultaneously or phase wise

depending upon the scheme of re4de'elopment. 3sually about three months are gi'en to the

members from the date of eecution of the de'elopment agreement before as(ing them to shift to

the alternate accommodation

6btaining the ""G -he 06 appro'al and demolition of the building will be followed by theissue of the "" !plinth le'el by the M"1M which shall enable the e'eloper to start the

construction wor( and after the plinth lines are 'erified by the M"1M officers, the further "" is

granted for the complete building

"onstruction of the buildingG -he building construction wor( will began in full earnest as per the

appro'ed plans by the M"1M ta(ing into consideration the 'arious safety factors to be

considered during the construction wor(. -he 8uality and the amenities will be pro'ided as per

agreed terms and conditions

6btaining the 6"G -he last step before the construction wor( is termed as complete is obtainingthe 6ccupation "ertificate enabling the e'eloper to allot the occupation to the old as well as

the new member

Shifting the old membersG 6n receipt of the 6ccupancy "ertificate the e'eloper can lawfully

allow the possession of the flats to be ta(en o'er by their owners

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Dutie 2 Function o! t&e De"e#oper:

-he e'eloper to demolish the building eisting in the plot and construct new multi storied buildings ta(ing into account the earth8ua(e resistant factors as directed by -he Municipal

"orporation of 1reater Mumbai. -he new building should ha'e stilt for car par(ing and should

consist of stories as per appro'ed plans. -he final plans are to be prepared after due consultation

with the managing committee and understanding their re8uirements.

-he e'eloper shall be responsible to obtain all the necessary appro'als from -he Municipal

"orporation of 1reater Mumbai and all other statutory and 1o'ernment offices and departments

which will includeG

$. e'elopment =lanning *emar( or -own =lanning *emar(G M"1M !e'. ept.

2. Sur'ey of the entire plot with regards to the area and topography of the plot, eisting plot

boundary and eisting structures !e'eloper:s 5rchitect

@. 0ntimation of isappro'al !06G M"1M

. =roperty -a 5ssessment A6"G M"1M !5ssessment epartment

?. &ydraulic ngineer Ao 6bjection "ertificateG M"1M !&ydraulic epartment

9. Storm Water rainage Ao 6bjection "ertificateG M"1M

7. Sewerage Ao 6bjection "ertificateG M"1M

;. -raffic ep:t. 6f Municipal "orporation of 1reater Mumbai Ao 6bjection "ertificateG

M"1M

D. 3rban Eand "eiling A6"G "ompetent 5uthority in "ollector:s 6ffice

$#. -ree Ao 6bjection "ertificateG M"1M !-ree 5uthority

$$. Aon45gricultural =ermissionG "ollectorIs 6ffice

$2. "i'il 5'iation Ao 6bjection "ertificateG 5irport 5uthority of 0ndia

$@. =est "ontrol Ao 6bjection "ertificateG M"1M !="6

$. M-AE Ao 6bjection "ertificateG M-AE

$?. "hief /ire 6fficerIs Ao 6bjection "ertificateG /ire epartment 6ffice

$9. "ommencement "ertificateG M"1M

$7. Eift 0nspection Ao 6bjection "ertificateG 0nspector of Eifts, =W

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$;. 6ccupation "ertificate !6"G M"1M

$D. Water "onnection "ertificate under section 27#5G M"1M

2#. rainage "ompletion "ertificateG M"1M !Water epartment

2$. uilding "ompletion "ertificate !""G M"1M22. -* EoadingG M"1M

2@. uilding emolition Wor(G "ontractor appointed for demolition wor(

2. Soil -esting *eportG -he "oncerned Eaboratory

=lease ensure to collect all the listed certificates from the e'eloper+e'eloper as the same must

be with the custody of the &ousing Society once the rede'elopment of the property is completed

and the occupancy certificate is issued by M"1M to rehouse the members.

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Finding

Most metropolitan cities around the world face scarcity of housing.

=opulation growth and Migration are two major cause of housing scarcity in Mumbai.

Slums < old housing in Mumbai co'er large area of city which creates inefficient

utilization of land. *ede'elopment or *efabricating of old houses is considered as best solution to reduce

scarcity of housing. "hina has similar economical and emographical characteristics as 0ndia. "hina

implemented cluster de'elopment of urban areas and was successful to reduce scarcity of

housing. 0f Mumbai is pro'ided similar infrastructure de'elopment then housing scarcity can be

reduced.

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0onc#uion

-here are constraints on the a'ailability of open land within the city limits coupled with fast

growing demand for houses and shortage of housing stoc(. 6n the other hand that there are

thousands of ageing buildings which are dilapidated and ha'e reached a stage where it is not

possible to carry out structural repairs and rehabilitation as the same are not economically 'iable.

-he rede'elopment 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 in'ol'es ade8uate and due compensation to the landlord and the tenants+members

and to the de'eloper duly is an ideal *ede'elopment scheme. -his needs faster procedural

clearance from 1o'ernment.

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will redevelopment of old building reduce the scarcity of housing in mumbai

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