G.R. dated 11th September, 2019 –— Guidelines for Rapid Re-development of Cessed buildings in Mumbai City
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Guidelines for Rapid Re-development of old and dilapidated Cessed buildings in Mumbai City
Government of Maharashtra
Department of Housing
Government Resolution No:- Vi.Man.ka-2016/Pra.Kra.142 (Part-1)/Du.Va.Pu- 1 , Madam Cama Marg, Hutatma Raj Guru Chowk, New Administrative Building, Mantralaya, Mumbai -400 032
Date:- 11th September, 2019
Vide:-
Government Resolution in the Department of Housing, bearing No:- Vi.Man.Ka.- 2016/Pra.Kra.142/Du.Va.Pu- 1, Dt. 29.11.2016
Preface:-
In order to make suggestions to the Government for policy decisions in the matter of problems pertaining to the cessed/non-cessed buildings in the Mumbai island city as well as the buildings connected with the Maharashtra Housing and Area Development Authority a committee comprising eight members of the State Legislature was constituted vide. Government Resolution in the Department of Housing, bearing No. Vi.Man.Ka.-2016/Pra.Kra.142/Du.Va.Pu-1, Dt.29.10.2016. The members of the said committee have submitted various recommendations regarding Re-development. In the light of these recommendations Report of the Committee was prepared and in furtherance of the recommendations contained therein necessary Guidelines are to be issued vis-à-vis Redevelopment.
The landlords of the cessed buildings in Mumbai City and the tenants/residents of such buildings together with their 51% consent appoint a developer for the Redevelopment of their buildings and make a request to the Mumbai Building Repairs and Reconstruction Board for the issuance of No-Objection Certificate in favour of such developer. Accordingly, a No-Objection Certificate is issued by the Mumbai Buildings Repairs and Reconstruction Board in favour of the concerned developer after examining eligibility of the tenants/residents of the concerned building.
For the Redevelopment of cessed buildings in Mumbai City it is necessary to select a financially/technically competent developer. The MHADA does not exercise any actual intervention/control over the selection of developers in the Redevelopment of cessed buildings. Hence it is necessary to fix the aspects pertaining to registration and eligibility of the developers for facilitating selection of a financially/technically competent developer in Redevelopment. Consequently, some Guidelines are required to be issued by the Government for fixing the aspects pertaining to the registration and eligibility of the developers for exercising control over such matters. Moreover, in several Redevelopment Projects tenants/residents donot get rent in time. Furthermore, for want of arrangement for alternative accommodation tenants/residents have to face several difficulties. In view thereof, some Guidelines are required to be issued vis-à-vis the opening of ESCROW Account in Redevelopment Scheme, receiving of advance sums from the developer towards rent payable to the tenants/residents, constitution of Vigilance Committee for overseeing construction work in the Redevelopment and accelerating Redevelopment of the landed property acquired under Section 103-B of the MHAD Act, 1976. Hence, the Government hereby proceeds to resolve as hereunder:-
Government Resolution:-
1. Fixation of matters pertaining to Registration and Eligibility of Developers:-
For the Redevelopment of cessed buildings developers are appointed by the landlords of the concerned buildings and the tenants/residents thereof. The Maharashtra Housing & Area Development Authority does not exercise any intervention/control over the selection of a developer. Hence, it is very necessary to select a financially/technically competent developer. In view thereof, the following Guidelines are hereby issued for the fixation of matters pertaining to registration and eligibility of developers in the Re-development of cessed buildings.
1.1 Registration of Developers:-
The Vice-President and Chief Executive Officer or the Maharashtra Housing & Area Development Authority, whichever being appropriate in a given case, may register in the prescribed manner, any individual or Body of Individuals or a Partnership Firm registered under the Partnership Act, 1932 or a Company registered under the Limited Liability Partnership Act, 2008 or the Companies Act, 2013 for the implementation of Redevelopment Scheme. The Maharashtra Housing & Area Development Authority shall obtain the following documents from the concerned parties, prior to registration and the information furnished at the time of registration shall be updated from time to time.
[a] Where Developer is a Company:-
* Certificate of Incorporation of the Company attested by a Chartered Accountant/Company Secretary.
* Memorandum of Association attested by a Chartered Accountant/Company Secretary.
* Articles of Association attested by a Chartered Accountant/Company Secretary.
* Permanent Account Number Card of the Company attested by a Chartered Accountant/Company Secretary.
* Resolution of the Board of Directors signed by the Managing Director/Company Secretary or any two Directors delegating powers to any of the Directors regarding submission of proposal/documents to the Maharashtra Housing & Area Development Authority.
OR
* Where the empowered person is not a director of the Company, a Registered General Power of Attorney.
* A list of all directors with their DIN Numbers certified by the Company Secretary.
* Self-attested copies of Permanent Account Number Cards of all directors.
* Photo-Identity Cards and signatures of all directors verified by a bank.
[b] Where Developer is a Partnership Firm:-
* An attested copy of the Certificate regarding Registration with the Registrar of Partnership Firms or a Notarised Guarantee to furnish such copy before the receipt of first Commencement Certificate for the Rehabilitation component comprised in the Redevelopment Scheme.
* Where the Firm is registered a true extract of the nature of entry with the Registrar of Firms.
* A recently notarised Deed of Partnership.
* A copy of the Permanent Account Number Card in the name of Partnership Firm attested by a Chartered Accountant.
* A notarised letter executed by all partners on a Stamp Paper of Rs.500/- delegating powers to any partner regarding submission of proposal/documents to the Maharashtra Housing and Area Development Authority.
* Self-attested copies of Permanent Account Number Cards of all partners.
* Photo Identity Cards and signatures of all partners verified by a bank.
[c] Where Developer is a Limited Liability Partnership Firm:-
* A self-attested copy of the Certificate of Registration with the Ministry of Corporate Affairs.
* Recently Notarised Deed of Partnership.
* A copy of the Permanent Account Number Card in the name of the Partnership Firm attested by a Chartered Accountant.
* A Notarised letter executed by all partners on a Stamp Paper of Rs.500/- delegating powers to any of the partners regarding submission of proposal/documents to the Maharashtra Housing and Area Development Authority.
* Self-attested copies of Permanent Account Number Cards of all partners.
* Photo Identity Cards and signatures of all partners verified by a bank.
[d] Where Developer is a Self-Proprietary Firm/Individual Person:-
* If registered, a self-attested copy of the Shops & Establishment Licence.
* A copy of Permanent Account Number Card of the owner.
* Photo-Identity Card and signature of the owner verified by a bank.
[e] Where Developer is a Hindu Undivided Family:-
* A declaration executed by all members of the Hindu Undivided Family on a Stamp Paper of Rs.500/-.
* Copies of Permanent Account Number Cards of all family members attested by a Chartered Accountant/Company Secretary.
* Self-attested copies of Permanent Account Number Cards of all family members.
* Photo-Identity Cards and signatures of all family members verified by a bank.
[f] Where Developer is a joint Venture:-
* A copy of Certificate of Registration as Joint Venture certified by a Notary or a Notarised Guarantee to furnish such copy prior to the receipt of first Commencement Certificate for the Rehabilitation component comprised in the Redeveloped scheme.
* Copies of Permanent Account Number Cards of such Joint Venture and those of all the constituents of such venture attested by a Chartered Accountant/Company Secretary.
* A registered General Power of Attorney delegating powers to any constituent of the Joint Venture regarding submission of proposal/documents to the Maharashtra Housing and Area Development Authority.
* Photo-Identity Cards and signatures of each person comprised in all constituents verified by a bank.
[g] Where Developer is a Body of Individuals:-
* A copy of Certificate of Registration as Body of Individuals certified by a Notary or a Notarised Guarantee to furnish such copy prior to the receipt of first Commencement Certificate for the Rehabilitation Component comprised in the Redevelopment Scheme.
* Copies of Permanent Account Number Cards of such Body of Individuals and all the members comprised in such Body attested by a Chartered Accountant/Company Secretary.
* Resolution delegating powers to any member of the Body of Individuals regarding submission of proposal/documents to the Maharashtra Housing and Area Development Authority.
[h] Where Developer is a Co-operative Housing Society:-
* A copy of Certificate of Registration as a Housing Society with the Registrar of Co-operative Societies.
* A copy of the Permanent Account Number Card of the society attested by the Secretary of the Society.
* Self-attested copies of Permanent Account Number Cards of the Chairman, Secretary and Treasurer of the Society.
* Photo-Identity Cards and signatures of the Chairman, Secretary and Treasurer of the Society verified by a bank.
* Registered General Power of Attorney delegating powers to any member of the Housing Society regarding submission of proposal/documents to the Maharashtra Housing and Area Development Authority.
Apart from the aforesaid information, it shall be necessary to furnish the financial Balance Sheets (for the company constituents) for the past three financial years. On the basis of the financial Balance Sheets and depending upon the number of eligible tenants/residents of the building to be re-developed the financial capacity of the developer shall be assessed. Each year, financial Balance Sheet will have to be updated. Accordingly, the Mumbai Building Repairs & Reconstruction Board shall check the financial Balance-Sheet for the previous year corresponding to the year in which the developer is to be issued No-Objection Certificate.
1.2. Criteria as to the Eligibility of Developers:-
For the effective implementation of a Redevelopment Scheme it would be necessary to fulfill the pre-requisite criteria vis-à-vis the fixation of eligibility and selection of a developer. The landlord and tenants/residents of the building to be re-developed should select developers who meet the said criteria. In view thereof, the following criteria should be utilised for the fixation of eligibility of developers:-
| Class of Developer | Average Annual Turnover over the past three years | Total Area constructed over the past three years in square Metres (Minimum) | Eligible for undertaking a Project comprising ____No. of Total Tenements |
| 1. | Rs. 10 to 50 Crores | 18,000 | Upto 500 |
| 2. | Rs. 51 to 250 Crores | 38,000 | Upto 1000 |
| 3. | Rs. 251 to 500 Crores | 75,000 | Upto 2000 |
| 4. | Rs. 501 to 1000 Crores | 1,75,000 | Upto 5000 |
| 5. | Above Rs. 1000 Crores | 3,00,000 | Upto 10,000 or Above |
The landlord and tenants/residents of the concerned building should select developers who meet the aforestated criteria. Moreover, the Mumbai Building Repairs & Reconstruction Board shall be obliged to issue No-Objection Certificate only upon the examination of such eligibility.
Moreover, if any developer who has been issued No-Objection Certificate for one project again presents a proposal for the issue of No-Objection Certificate in a new project then the Mumbai Building Repairs & Reconstruction Board should issue No-Objection Certificate for the new Project only after considering the status of Rehabilitation tenements/Project in all previously sanctioned Projects and upon examination of eligibility of the developer vis-à-vis the class set out in the aforestated chart to which he belongs.
2. To open an ESCROW Account in the Redevelopment Scheme and to accept advance sums from the Developer on account of the Rent payable to Tenants/Residents:-
The landlords of the cessed buildings in Mumbai City and the tenants/residents of such buildings with their 51% consent appoint a developer for the Redevelopment of such buildings and make a request to the Mumbai Buildings Repairs & Reconstruction Board to issue a No-Objection Certificate to such developer. Accordingly, a No-Objection Certificate is issued by the Mumbai Buildings Repairs & Reconstruction Board to the developer for the Redevelopment of such building upon examination of the eligibility of the tenants/residents of the concerned building. Accordingly, actual construction begins after the receipt of IOD/CC from the Municipal Corporation for the construction of such building. After demolition of the old building the responsibility of making arrangements for the temporary accommodation of the residents of such building rests upon the concerned developer. In view thereof, the concerned developer either makes arrangement for the temporary accommodation of the tenants/residents or pays them monthly rent on account of temporary accommodation. Generally speaking, construction of the new building is expected to be completed within 2 to 3 years. However, due to several reasons the construction work is delayed or some developers leave the construction incomplete and donot complete the remaining construction or their whereabouts are not known. In such a scenario, the tenants/residents of the old buildings are the worst affected lot. As a result, the tenants/residents of such Project do not get rent; in fact, in some cases, the tenants/residents donot get rent for almost 3 to 5 years. In several cases, construction of the new building is completed a few years after the rent default. In such event, the concerned tenants/residents are constrained to take possession of the tenements in the new building by making a compromise on the arrears of rent or without receiving the rent arrears at all. In this way, the tenants/residents have to face financial exploitation.
The opening of an ESCROW Account in the name of the concerned developer and the proposed co-operative housing society is hereinafter made mandatory for the developer at the time of issue of No-Objection Certificate in favour of the developer by the Mumbai Building Repairs & Reconstruction Board vis-à-vis the Redevelopment of old cessed building. The concerned developer shall be required to deposit in the said account the amount of rent payable to the tenants/ residents for the next 3 years. Of this amount, the concerned developer shall be obliged to deposit in the said account, the amount of rent for the first 2 years within one month of the receipt of No-Objection Certificate and a condition should be incorporated in the No-Objection Certificate that the Municipal Corporation should not issue the Commencement Certificate without submission of written proof as to credit of such amount to the account. Moreover, the concerned developer shall be obliged to deposit in the said account the amount of rent on account of the remaining third year at the end of two years and upon the beginning of the third year. It shall be the responsibility of the concerned Executive Engineer of the Mumbai Building Repairs & Reconstruction Board to check as to whether the developer has deposited the said amount in the account in time.
3. Establishment of Vigilance Committee to oversee construction work in Redevelopment:-
It is necessary that the standard of construction of the newly constructed buildings upon Redevelopment of the old buildings should be of good quality. Especially, if the construction work of buildings to be constructed by the Maharashtra Housing & Area Development Authority is of excellent grade then it will furbish the image of MHADA and consequently that of the Government amongst the general public and it will enhance credibility of the Government. In view thereof, the Chief Officer of Mumbai Building Repairs & Reconstruction Board should set up a Vigilance Committee for each Project as set out herein below:-
1] The Executive Engineer of the concerned ward;
2] The Deputy Engineer of the concerned ward;
3] Minimum 3 Representatives of the tenants/residents of the concerned building.
Duties of the Committee:-
The said Committee should conduct actual site inspection of the construction of the concerned building at the interval of every 3 months and accordingly it should prepare a Progress Report of the construction work. Furthermore, the said Report should be submitted to the Vice-President and Chief Executive Officer of the Maharashtra Housing & Area Development Authority through the Chief Officer of Mumbai Building Repairs & Reconstruction Board within 15 days of the date of such site inspection being made.
The Chief Officer of the Mumbai Building Repairs & Reconstruction Board should conduct a review of all the Projects for which No-Objection Certificates have been issued by arranging a meeting with the Executive Engineer of the concerned ward. Pursuant to the said review Quarterly Progress Reports (QPR) pertaining to the status of each Project should be submitted to the Government through the Vice-President and Chief Executive Officer of the Maharashtra Housing & Area Development Authority.
4.Guidelines for accelerating Redevelopment of the Property acquired under Section 103-B of the MHAD Act, 1976:-
If tenants/residents of the cessed building make a request for the acquisition of the building wherein they are residing and for the transfer of such building to the proposed co-operative housing society for repairs/reconstruction of such property, such landed property is acquired under Section 103-B contained in Chapter 8A of the MHAD Act, 1976. However, in this case the Property Owners’ Association has preferred an SLP in the Hon’ble Supreme Court and the said petition is pending before a Bench of 9 Judges. In this case, the Hon’ble Supreme Court has imposed restrictions on the transfer of the acquired landed property to the concerned society and the said SLP is still pending. Hence, the fact remains that the reconstruction/redevelopment of such buildings cannot be carried out since such type of property cannot be transferred to the concerned proposed co-operative housing society. Hence, for the rapid Re-development of such property following action should be taken.
1] The landlord of the concerned building as well as the tenants/residents of such building should prepare Joint Consent Forms and file the same in the Hon’ble Supreme Court through the MHADA/Government in order to seek permission of the Hon’ble Court. While obtaining consent of the landlord and the tenants/residents of the concerned building video photography should be conducted under the supervision of the Executive Engineer of the Mumbai Building Repairs & Reconstruction Board in the concerned ward, so as to ensure that nobody is exploited at the time of such consent. Joint Consent Terms should be filed in the Hon’ble Supreme Court only after the Chief Officer of the Mumbai Buildings Repairs & Reconstruction Board conducts a minute inspection of such video footage.
2] There are cases in which the Government, during the intervening period, has initiated land acquisition of property under Section 103-B and the land acquisition has proceeded upto the stage of Section 93(5); if in such cases all landlords as well as all tenants/residents of the concerned buildings with their 70% consent submit a proposal for the revocation of such land acquisition to the Government through the MHADA then action in that regard shall be taken by the Government in accordance with the Rules. In this regard too, video photography shall be conducted under the supervision of the Executive Engineer of the Mumbai Buildings Repairs & Reconstruction Board in the concerned ward at the time of obtaining consent of the concerned tenants/residents and a proposal should be submitted for the sanction of the Government only after the Chief Officer of the Mumbai Building Repairs & Reconstruction Board minutely inspects such video footage and certifies that no irregularity of any kind has been noticed.
This Government Resolution is made available on the website of the Government of Maharashtra- www.maharashtra.gov.in and its Code Number is 201909111909118309. This Resolution is attested and issued under digital signature.
By the order and in the name of the Governor of Maharashtra.
Shrinivas Bhagvanrao Mokalikar – Digital Signature
[Shrinivas Mokalikar]
Under Secretary, Government of Maharashtra
Copy:-
1] The Secretary to the Hon’ble Governor (By Letter),
2] The Principal Secretary to the Hon’ble Chief Minister,
3] The Private Secretary to the Hon’ble Minister (Housing),
4] The Private Secretary to the Hon’ble Minister of State (Housing),
5] Private Secretaries to all Ministers/Ministers of State, Mantralaya, Mumbai,
6] Hon’ble Leaders of Opposition, Legislative Council/Legislative Assembly, Maharashtra Legislative Secretariat, Mumbai,
7] All Hon’ble Members of Legislative Assembly & Legislative Council,
8] The Chief Secretary, Government of Maharashtra, Mantralaya, Mumbai,
9] The Additional Chief Secretary, Department of Housing, Mantralaya, Mumbai,
10] The Additional Chief Secretary (Revenue), Department of Revenue & Forest, Mantralaya, Mumbai,
11] The Additional Chief Secretary (Finance), Department of Finance, Mantralaya, Mumbai,
12] The Principal Secretary (UD-1), Department of Urban Development, Mantralaya, Mumbai,
13] The Principal Secretary (UD-2), Department of Urban Development, Mantralaya, Mumbai,
14] The Principal Secretary, Department of Co-Co-operation and Textile (Co-operation), Mantralaya, Mumbai,
15] The Principal Secretary, Department of Rural Development, Mantralaya, Mumbai,
16] The Commissioner, Municipal Corporation for Greater Mumbai, Mumbai,
17] The Vice-President and Chief Executive Officer, Maharashtra Housing & Area Development Authority, Bandra, Mumbai,
18] The Chief Executive Officer, Slum Rehabilitation Authority, Bandra, Mumbai,
19] The Chief Officer, the Mumbai Buildings Repairs & Reconstruction Board, Bandra, Mumbai,
20] The Chief Officer, the Mumbai Housing & Area Development Authority, Bandra (East),
21] Chief Officers, Housing & Area Development Authorities, Pune/Nashik/Aurngabad/Amravati/Nagpur,
22] The Director General, the Directorate of Information and Public Relations, Mumbai,
23] All Divisional Commissioners,
24] Commissioners of all Municipal Corporations,
25] All District Collectors,
26] Chief Executive Officers of all Zilla Parishads,
27] Chief Officers of all Municipalities/Municipal Councils,
28] All Deputy Secretaries in the Department of Housing, Mantralaya, Mumbai,
29] All Under Secretaries/Section Officers in the Department of Housing, Mantralaya, Mumbai,
30] Select File, Work Desk, Du.Va.Pu.-1, for Record.
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[Translated by Adv. Prakash Manohar Chalke.—
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