redevelopment

Policies and Notifications

(English Translation of the original G.R in Marathi)

                                                                        Author.— Prakash Manohar Chalke

                                                                                                        B.Com. L L.B

                                                                                           Advocate High Court

Translation Copyright:- With the Author

Regarding the implementation of the recommendations of the Afzulpurkar committee vis-à-vis the repairs and re-development of the old and dilapidated tenanted buildings in the suburbs and extended suburbs of Mumbai.

Government of Maharashtra,

Department of Housing,

Government Resolution No:- Mum.E.Du-1098/Pra.Kra.1325 (Part-2)/ Du.Va.Pu-1,

Mantralaya, Mumbai-400  032,

Date:- 31st May, 2006.

Read:- Government Resolution, Department of Housing & Special Assistance.

No. Mum. E. Du- 1298/Pra.Kra. 1325/Du.Va.Pu-1, dated 17th March, 1998.

Preface

Shelter is an important need of human beings. Taking into consideration this factor, programmes for the repairs and re-development of the dilapidated buildings are being undertaken through Mumbai Building Repairs & Re-development Board so as to protect the life and property of the tenants residing in the old and dilapidated tenanted buildings in the island city of Mumbai.

  1. While taking decision on the recommendations of the Sukthankar Committee appointed to speed up the programme of repairs & re-development of the cessed buildings in the island city of Mumbai, a committee under the Chairmanship of Shri. Dinesh Afzulpurkar, former Chief Secretary was proposed to be appointed in pursuance of the Cabinet decision dated 9th December, 1997, to contemplate the advisability of the expansion of the said programme by including therein, the old buildings in the suburbs and extended suburbs and also to suggest due measures.
  1. In pursuance of the said decision a committee under the chairmanship of Shri. Dinesh Afzulpurkar, former Chief Secretary was appointed by the above-referred Government Resolution dated 17.3.1998, to make an exhaustive study of the problems of the tenanted buildings in the suburbs and extended suburbs of Mumbai in their present condition in the matter of repairs and redevelopment thereof. To consider the extension of the Mumbai buildings Repairs & Redevelopment Act and the Board functioning under the said Act, which at present govern the island city of Mumbai, to the suburbs and extended suburbs and if the said extension is advisable then in what manner it should be extended or what alternative measures should be adopted and to make necessary recommendations to the Government in that regard.  Principal Secretary (Urban Development), Secretary (Housing), Commissioner, Municipal Corporation of Greater Mumbai, Deputy Chairman and Chief Executive Officer, Maharashtra Housing and Area Development Authority, Chief Officer, Mumbai Buildings Repairs & Re-development Board were members of the said committee.

Modus operandi of the Committee

  1. The committee held discussions with heads of various departments. Furthermore, the committee invited suggestions from the members of the public regarding the concerned problems and studied 550 representations received from the public. Moreover, the committee ascertained the views of the cooperative housing societies in the suburbs regarding the said problems and their solutions by direct consultations with them or through the good offices of the Department of Cooperation.  After taking into consideration various factors such as the consultations with various heads of departments, representations received from the public, the recommendations made in the reports submitted by former committees such as the Tembe Committee, Kerkar Committee, Dighe Committee, Sukthankar Committee etc., the Committee submitted its report to the Government on 23rd November, 2000.

Consultations with the People’s Representatives regarding the report of the committee

  1. In the context of the recommendations of the Afzulpurkar Committee, debates were held in the legislative Assembly/Legislative Council for over half an hour and questions too were asked on the said subject. With reference to these questions, the Government assured the Houses that consultations would be held with the People’s Representatives from the suburbs and extended suburbs in regard to the recommendations contained in the said report received by it.  In pursuance of the said assurance given by the government the then Hon’ Minister for Housing presided over four meetings with all the concerned members of the Legislative Assembly/Council after furnishing them recommendations of the committee and all other necessary papers.  The views of the Hon’ members of the Legislative Assembly and the Legislative Council were ascertained after taking into consideration the discussions held at these meetings and the views expressed therein by the representatives of the people present.
  1. After taking into consideration the suggestions offered by the People’s Representatives, the government has taken the following decisions regarding the recommendations of the committee.

GOVERNMENT RESOLUTION

The nature of problems facing buildings in the suburbs and extended suburbs

  1. The nature and causes of problems of old and dilapidated buildings in the suburbs and extended suburbs are varied. Old age is not the only cause for dilapidation of some of the buildings in the suburbs, but there are many.  The schedule of work of the sanctioned buildings, unauthorised construction and improper and insufficient maintenance/ repairs are also important causes.  Of the total 64,858 buildings in the suburbs, 45,826 buildings are held on ownership basis, while 19,032 buildings are tenanted buildings.  Of the tenanted buildings about 50% buildings are owned by the Maharashtra Housing and Area Development Authority.  Remaining about 10,000 buildings are tenanted buildings.  The number of tenanted buildings in the suburbs is less than the number of tenanted buildings in the island city.  Measures need to be suggested after considering the circumstances and old age of the buildings held on ownership basis and of the buildings owned by co-operative housing societies.

The experience of repairs and redevelopment in the island city of Mumbai

  1.           The outcome of the working of the Act, which is in force in the island city of Mumbai, for repairs and redevelopment of the cessed buildings and the schemes implemented under that Act, is not notice-worthy.  Therefore, the experience of the tenants of the buildings repaired under this scheme is not heartening.  There are some incidental problems of the redeveloped buildings.  Against this backdrop and considering the fact that the number of tenanted buildings in the suburbs and extended suburbs is less, it would not be advisable to extend and implement the measures, laws and their provisions and the programmes thereunder, which presently govern the cessed buildings in the island city of Mumbai in the same form to the suburbs and the extended suburbs.  Thus considering the problems faced by buildings in the suburbs/extended suburbs and which are held on either ownership basis, tenanted basis or through the co-operative housing society and all factors compatible with the remedial measures, the government has decided not to extend the Act and the Scheme pertaining to the repairs and redevelopment of the old and dilapidated buildings, currently in force in the island city of Mumbai, to the buildings in the suburbs.

The Government has also decided that a proper Scheme for the suburbs and extended suburbs should be effectively implemented.  The details of the remedial measures pertaining to the old and dilapidated buildings in the suburbs and extended suburbs of Mumbai are set out in the following paragraphs.

Regarding survey of buildings in the suburbs and extended suburbs and regarding enforcement of the Redevelopment

  1. As part of the remedial measures for the buildings in the suburbs, the buildings constructed prior to 1990 will be subjected to survey. While conducting survey of the buildings, in addition to the age of buildings, the factors responsible for the deterioration of the buildings will also be ascertained (e.g. Buildings in need of redevelopment, buildings in need of repairs) and the gradation of such building will be prepared by the B.M.C. Thereafter according to the gradation, the lists of buildings as per Ward and Municipal House numbers, will be prepared. In stead of applying the Scheme formulated by the government to all the surveyed buildings in the suburbs at once, it will be applied at the outset to the buildings which are in need of redevelopment within the period of next three years.  Thereafter this scheme will be applied to the other buildings in a phased manner as per their gradation.  The list of the buildings to which the scheme is made applicable will be published after following the due procedure. The buildings which are included in the published list will be applied the Redevelopment Scheme mentioned in paragraph 11 in a phased manner.  The scheme and the conditions governing the buildings, which are in need of repairs and maintenance, are mentioned in other paragraphs.

Regarding principles to be followed in the construction of buildings

  1. The mishaps following building collapses at Navare Apartment-Sion, Ganesh Bhawan-Kalbadevi, Poonam Chambers-Worli, Pravin Shruti-Vile Parle, Sukhsagar-Malad, Govind Tower-Vandre, claimed heavy casualties in addition to loss of property. In that regard the committee appointed under the chairmanship of Shri. K.C. Shrivastava made recommendations regarding preparation of Plans of buildings, their sanction, soil testing and structure of building and also called for prohibition of unauthorised alterations in the buildings during construction of and maintenance of buildings. The Afzulpurkar Committee fully concurred with these recommendations and according to their recommendations following principles and yardsticks are formulated.  The Government hereby orders that the following principles and yardsticks will be scrupulously followed in the construction of buildings.

(a) It will be mandatory to possess proper documents and certificates evidencing occupational/leasehold/ ownership rights in respect of the land where construction of building is proposed.  While considering grant of commencement certificate, it will be obligatory to fulfil this condition. Commencement certificate will not be granted in absence of a long term lease or occupation.

(b) It will be obligatory for the Construction Engineer to conduct soil test, deep drilling test before actual construction and to ascertain the kind of plinth that would be necessary on the basis of these tests.

(c) It will be mandatory to provide for protective layer of minimum 25 MM. to fortify the beams in R.C.C structures of large construction.

(d) The Construction Engineer shall maintain all the papers pertaining to soil testing in the form of permanent record so that if necessary, they will be available for future examination.

(e) It will be mandatory to conduct Destructive Test of the material required for construction.

It will be obligatory for the owner/cooperative housing society to maintain the papers pertaining to matters indicated in clauses (a) to (e) herein, and pertaining to other matters, as part of Record of the building.

Limitations on the Building professionals

  1. The Government has also decided that in order to take action in pursuance of the aforementioned recommendations, it will be mandatory for every building professional to engage and hire for each work, a licensed Supervisor who is a qualified engineer, a licensed architect, a licensed or professional structural engineer, a licensed plumber, licensed electrical engineer and other technical staff. It will be obligatory to furnish the list of such technical staff and the necessary agreements about their appointment in that behalf to the Municipal Corporation for Greater Mumbai.  This technical staff will be held responsible for the work of construction.

The structural inspection of Buildings after a particular period and the method to be followed

  1. It will be obligatory to obtain a structural engineer’s certificate about the structural safety of the building after the building completes a particular period of its life by conducting a structural inspection in order to ascertain whether it is structurally safe or not. It will be the responsibility of the concerned landlord or the cooperative housing society to obtain such certificate after such inspection. It shall be the responsibility of the Municipal Corporation to monitor whether such work is properly carried out. However, considering the fact that this work will add to the burden of the Municipal Corporation, if the work is assigned to their Engineers, the government has accepted the recommendation of the committee to assign the said work of safety inspection of buildings and the issue of certificate to the structural engineers certified by the Municipal Corporation.  For this the Municipal Corporaton shall prepare a list of about 100 to 150 qualified and proper structural engineers.  The main features of the structural safety inspection of the building shall be as follows:-

(a) Structural engineers of experience, noteworthy actions, integrity and actual experience of construction shall be included in the list of structural engineers.  Regulations may be prepared in that regard.

(b) The list of certified structural engineers shall be revised every two years and opportunity shall be given to new structural engineers.

(c) Certification of the buildings, which have completed the life of 15 years, shall be started.

(d) The buildings in the age group of 15- 30 years shall be subjected to certification every five years. Buildings which have completed life of more than 30 years shall be subjected to certification every three years.  In this way it will be possible to exercise proper control over the safety of the buildings throughout their entire life span.

(e) The municipal Corporation shall monitor the work of preparation of list of structural engineers or the institutions, which certify the construction, the work of inspection of buildings through such structural engineers etc. so as to ensure proper maintenance of the buildings.

(ee) Those persons or institutions which do not fulfil the requirement of certification within the prescribed period shall be liable to pay fine. Provision should be made for cancellation of the occupation certificate of the persons or the institutions, which do not pay fine.

(f) Those certified structural engineers whose performance is improper or insufficient shall be dropped from the list and opportunity shall be given to new engineers.

The Department of urban Development shall take prompt action to make necessary provisions in the BMC Act or in the rules framed there under in order to implement the aforementioned things.

Responsibility of the Co-operative Housing Societies and the principles governing the same

  1. The committee considered the financial condition, Buildings Repairs and Maintenance Fund, Sinking Fund and Debt Repayment Fund of the Cooperative housing societies. The committee applied its mind to problems such as the insufficient maintenance of the buildings, paucity of funds for repairs and redevelopment and also to their possible solutions. The committee has recommended effective implementation of the rules as well as necessary changes in the rules in that regard.

The committee has submitted a draft of the proposed amendments to be carried out to the Maharashtra Co-operative Societies Act, 1960 along with this report. These amendments inter-alia include provisions in regard to the functioning of the co-operative housing societies, arrears of their various funds and the recovery thereof, regular control over the business of co-operative housing societies and the appointment of a Manager to deal with the works of recovery, repairs and maintenance etc.

  1. In the context of the recommendations contained in chapter 7 of the Afzulpurkar committee report Department of Co-operation, Marketing & Textiles has given the following remark:-

(a) The concerned officers have already been directed to ensure adoption of the Model Bye-Laws by the co-operative housing societies.  As the model Bye-laws contain provisions for internal working of the societies, it is not necessary to make separate rules for these societies as per the recommendations of the Afzulpurkar Committee.

(b) With regard to recommendations of the committee to make provisions in the parent Act and the rules made there under in respect of the Sinking Fund and Repairs Fund, it is remarked that Model Bye-Laws already contain necessary provisions for contribution to the Sinking Fund (Disbursement of Loan) and the Repairs & Maintenance Fund and that such provisions are sufficient and proper.

(c) With regard to recommendations of the committee for decentralisation of sections of 101 and 156 of the Co-operative Act, it is remarked that Sections 101 and 156 of the Maharashtra Cooperative Societies Act, 1960 contain provisions for recovery of arrears from the members; hence it is not necessary to amend the said Act.  Furthermore, all the Registrars have been directed to dispose of the cases under section 101 within a period of two months.  Under section 156 the Registrars have the power to attach and sell the property of a particular value.  As the Act contains sufficiently stringent provisions for the recovery of arrears, it is not necessary to amend the Act.

(d) With regard to the recommendations of the committee about appointment of Managers to the Co-operative Housing Societies, it is remarked that Co-operative Housing societies are autonomous bodies and if the government interferes to appoint a Manager, it may be challenged in the Courts.  Hence, it would not be advisable for the government to appoint a Manager.

(e) With regard to the recommendations of the committee about amendment in the definitions of Member, Joint Member, Associate Member and sympathiser member and to make it applicable only to co-operative housing societies, it is remarked that definitions of Members etc. as contained in the Maharashtra Co-operative Societies Act, Rules and Model bye-Laws are very clear and need no amendment.

(ee) With regard to the recommendations of the committee about Managers, their powers and duties, it is remarked that Co-operative Housing societies are autonomous bodies; hence, it would not be advisable for the government to appoint a Manager. As such there is no need to carry out amendment to the said Act.

(f) With regard to the recommendations of the committee for making provisions about the Sinking Fund & Maintenance Fund of the Co-operative housing societies and for recovery of the arrears from the members, it is remarked that the said Act, Rules and model bye-laws contain provisions in this regard, hence it is not necessary to carry out amendment to the said Act.

(g) With regard to the recommendations of the committee regarding expulsion of the continuously defaulting member, it is remarked that section 35 of the said Act contains provision regarding expulsion of the continuously defaulting member, hence, it is not necessary to carry out fresh amendment to the said Act.

(h) With regard to the recommendations of the committee regarding internal changes/alterations carried out in the flats and the power of inspection of flats, it is remarked that Bye-Law No.47 of the Model Bye-Laws envisages the member to seek permission of the co-operative housing society before carrying out alterations/additions to his flat. Bye-law No.48 contains provisions for inspection of a member’s flat, to submit a report regarding necessity of repairs and the society carrying out repairs at the expenses of the member.

Against this background the Department of Co-operation, Marketing & Textiles has clarified that there is no need for amendment to the said Act and the rules there under, as suggested by the Afzulpurkar Committee.

Insurance of the buildings in the suburbs and extended suburbs

  1. The committee has recommended that the occupiers of the buildings insure their buildings with a view to ensuring protection of the life and property of the occupiers of the buildings.  It is expected that with a compulsory insurance all attempts would be made to maintain the building in a safe condition. The committee has recommended that for a flat admeasuring about 450 Sq. Ft., the monthly insurance premium should not exceed Rs. 25/—Rs.30/-. The committee has commented that this premium will be affordable to the occupiers.  The government has accepted this recommendation of the committee.
  2. In the context of insuring buildings in the suburbs, Director of Insurance, Government Insurance Fund, Directorate of Insurance, Maharashtra State, had submitted the following proposal:-

(a) For comprehensive insurance of every flat in the buildings (including tenanted and ownership buildings), an yearly premium of Rs. 300/- will be charged.

(b) In the event of injury or loss of life caused by a building collapse, a maximum insurance protection of Rs.50,000/- per person will be available (in stead of Rs- 10,000/-at present ), against yearly insurance premium of Rs. 5,00,000/- (instead of earlier insurance premium of Rs. 5,87,000/-).  The government has sanctioned the said proposal of the Director of Insurance and accordingly the Director shall proceed to act in that regard.

The Scheme of Redevelopment of extremely old/ dangerous buildings declared by the  Municipal Corporation for  Greater Mumbai

  1. The developer/Co-operative Housing Society shall bear the entire cost of the newly constructed building, meant to redevelop old tenanted building. Building receiving incentive floor space index (extra floor space index) shall have to be included in the list published by the government.(In terms of decision no-3 as cited in paragraph-6). From this standpoint the government has approved the recommendation of the committee to grant incentive/extra floor space index.  Accordingly, incentive Floor Space Index will be available over and above the present 1.00 floor space index free of cost.  The said incentive Floor space will vary from building to building according to its prevailing circumstances.  It will be more than 1.00 F.S.I permissible in the suburbs and the extended suburbs. However, the government has decided to limit the total F.S.I to 2.00 after including the extra floor space index available on the plot.  The formula for working out the incentive floor space index is indicated in the Appendix “A” to the said resolution. Independent action is being taken under section 37 of The Maharashtra Regional and Town Planning Act, 1966 to effect necessary changes anticipated for determining this formula.
  1. The government has approved the recommendation made by the committee regarding the premises for determining the incentive floor space index.  These premises are indicated in Appendix “B” to this resolution.
  1. Tenants/occupiers in the old buildings will be provided flats in the new buildings free of cost and on ownership basis.

Regarding telescopic charging of the Property tax

  1. Original tenants of the old buildings will be charged property tax in respect of their flats in redeveloped buildings on telescopic basis along the lines of Slum Rehabilitation Scheme.

Regarding fixation of the cut-off date for determining the number of  tenants

  1. The committee has recommended fixation of some day in the year 1986, in order to check the growth of tenants and to determine the number of genuine tenants while redeveloping old buildings. However, after considering the overall matters the government has decided to fix 23. 11. 2000 as the “Cut-off Date” which is the date on which the committee submitted its report to the government.

Regarding development of ‘Gavthans’

  1. The government has approved the following recommendations of the committee in order to boost the work of redevelopment in the 60 ‘Gavthans’ on the outskirts of Municipal Corporation of Gr. Mumbai.

(a) The approved principles governing the grant of floor space index in the city of Mumbai will be applicable to these ‘Gavthans’.

(b) ‘Gavthans’ shall have only two to three roads of 3.6 Mts. width for traffic purpose.  Attempts should not be made to widen the remaining roads that are already in existence.  These roads can be used for the entry of pedestrians.  Thus, all the plots will become accessible by walk and by vehicle.

(c) It is impossible to keep width of all the roads in conformity with the standards of the Fire Brigade. Hence, it is incumbent for the Fire Brigade to devise some methods for fire fighting in the old ‘Gavthans’.  For this purpose it may resort to modern technology.

(d) For travelling to every plot/destination in the ‘Gavthan’ area, motorable road is not necessary.

(e) Since marginal open space is not available in the ‘Gavthan’, it should not be insisted upon while carrying out development.

In the context of the aforesaid recommendations, Department of urban Development is taking appropriate steps for carrying out necessary amendments to the Development Control Regulation vis-à-vis the ‘Gavthans’.

  1. It has been decided to appoint a work group under the chairmanship of the Commissioner/Add. Commissioner of the Municipal Corporation of Gr. Mumbai to implement this resolution.  The orders for determining the nature and jurisdiction of this work group will be separately issued.
  2. The said Government Resolution has been issued with concurrence of the Department of Urban Development and the Department of Co-operation, Marketing and Textile.
  1. This Government Resolution is available on the web site of the Government of Maharashtra and its computer code number is 20060602172213001.

In the name of and by the order of the Governor of Maharashtra.                                                                                            Sd/-

(N. Ramarao)

Principal Secretary to the Government

C.C:-

  • Secretary to His Excellency the Governor, (By Post)
  • Principal Secretary to the Hon’ Chief Minister,
  • Secretary to the Hon’ Deputy Chief Minister,
  • Personal Assistant to the Hon’ Minister for state (Housing)
  • Private Secretary to the Hon’ Minister for state, Urban Development ,
  • Hon’ Chief Secretary, Maharashtra Government, Mantralaya, Mumbai-400 032,
  • Commissioner, Municipal Corporation for Gr. Mumbai, Mahapalika Marg, Fort, Mumbai-400 001,
  • Metropolitan Commissioner, Mumbai Metropolitan Region Development Authority, Bandra Complex, opposite Pay & Accounts Office, Bandra (East), Mumbai-51,
  • Additional Chief Secretary, Finance Department, Mantralaya, Mumbai- 400 032,
  • Principal Secretary, (1) Department of Urban Development, Mantralaya,  Mumbai-  400  032,

11) Principal Secretary, (2) Department of urban Development,  Mantralaya, Mumbai-

400  032,

12) Secretary, Department of Co-operation, Mantralaya, Mumbai- 400  032,

13) Secretary, Department of relief work and rehabilitation, Mantralaya, Mumbai- 400

032,

14) Secretary, Department of Law and judiciary, Mantralaya, Mumbai- 400  032,

15) Inspector General of Registration, Maharashtra State, New Administrative

Building, ground floor, Pune-411  001,

16) Commissioner of Co-operation and Registrar, Cooperative Societies,

Maharashtra State, Pune,

17) Deputy Chairman and Chief Executive Officer, Maharashtra Housing and Area

Development Authority, Griha Nirman Bhavan, Bandra (East), Mumbai-400  051

18) Director General, Directorate of Information & Public Relations, Mantralaya,

Mumbai- 400  032,

19) Director of Insurance, Government Insurance Fund, Directorate of Insurance,

Maharashtra State, Griha Nirman Bhavan, 1st Floor, Bandra (East), Mumbai- 400

051,

20) Collector, Mumbai City, Old Customs House, Fort, Mumbai-400  001,

21) Collector, Mumbai Suburban District, Bandra (East), Mumbai- 400  051,

22) Chief Officer, Mumbai Building Repairs & Redevelopment Board, Griha Nirman Bhavan, Bandra (East), Mumbai-400 051,

23) Joint Registrar, Co-operative Societies, Malhotra House, opposite G.P.O, Mumbai- 400  001,

24) Chief Engineer, Maharashtra Housing & Area Development Authority, Griha Nirman Bhavan, Bandra (East), Mumbai-400  051,

25) Chief Engineer, (Development Schemes) Municipal Corporation for Gr. Mumbai, Mahapalika Marg, Fort, Mumbai-400  001,

26) Chief Engineer, (City) Building Proposals, Municipal Corporation for Gr. Mumbai, Mahapalika Marg, Fort, Mumbai-400  001,

27) Director, (Engineering services and projects), Municipal Corporation for Gr. Mumbai, Mahapalika Marg, Fort, Mumbai-400  001,

28) Chief Fire Officer, Municipal Corporation for Gr. Mumbai, Fire Brigade Head Quarters, Byculla, Mumbai-400  008,

29) Deputy Chief Engineer (Building Proposals), Mumbai Buildings Repairs & Redevelopment Board, Griha Nirman Bhavan, Bandra (East), Mumbai- 400 051,          30) Deputy Chief Engineer (Redevelopment), Mumbai Building Repairs & Redevelopment Board, Shankar Abaji Palav Marg, Shindevadi, Dadar, Mumbai-14

31) Deputy Chief Engineer, North/South, Mumbai Buildings Repairs & Redevelopment Board, Shankar Abaji Palav Marg, Shindevadi, Dadar, Mumbai-14

32) All karyasans in the Housing Department, Mantralaya, Mumbai-400 032,

33) Nivad Nasti (Du.Va.Pu-1Karyasan) Housing Department, Mantralaya, Mumbai-32

APPENDIX- “A”

Formula for working out incentive floor space index:-

The following formula has been fixed for working out incentive floor space index in the matters of buildings that are redeveloped.  As indicated in the Government Resolution (decision Nos. 3 and 11 as cited in paragraph No.6 of the G.R) this formula will apply only to those buildings, which are notified for redevelopment.  The terms used in this formula are as follows:-

(1) RA= Rehabilitation Area

Rehabilitation Construction Area means, the tally of the floor space of the flats in the use of Persons/families in the buildings + Additional area to the extent of 20% of such area + area under public use.

(2) MV= Market Value

(3) C= Rate of Cost of Construction per square metre.

Formula:-

(4) Incentive Floor Space =           Z        .

(MV- C)

In this formula value of Z is as follows.

(5) (Z = RA x C)

In this formula the premises (Basis) are as follows:-

RA={Rehabilitation construction Area worked out after totaling the floor space of each flat/tenement in the building to be redeveloped and the extra 20% area will be treated as the area of tenement/flat of the tenement holder.  Since walls in the old buildings are of load bearing type, it would be advisable to increase such floor space by 20%. This will be the built-up Area of each flat.

To give benefit of the public space such area will have to be worked out separately. After adding this area to the construction area indicated above, the total construction area required for rehabilitation of tenants/tenement-holders in the redeveloped building will be worked out.  Of course, even in the redeveloped building benefit of the public space will be limited to the public utility. Care should be taken to ensure that no single tenant or person hogs the entire benefit of the area available on account of public space.

(6) MV = Market Value of the construction Area— The Inspector General of Registration for the State of Maharashtra every year publishes a Ready Reckoner.  The rate of flat in terms of sale for each ward or its division in the suburbs of Mumbai as indicated in the Ready Reckoner will be treated as the Market Value of the construction.  Since this rate of market value is as per Ready Reckoner and pre-determined, it will ensure fairness and objectivity in using the formula and in working out the incentive floor space index.

(7) C=Rate of Cost of Construction per square metre.— The Commissioner, Municipal Corporation for Greater Mumbai will determine this rate on the 1st of January every year for that year.  Because of determination of the rate, fairness will be ensured and malpractices will be checked.  In determining the rate of cost of construction per square metre, the Commissioner shall have due regard to the circumstances and the total cost of the project.

(8) Z = Total cost of Rehabilitation project (RA x C)

As indicated in the foregoing paragraph, the incentive floor space available to the developer under this scheme will be as per the following formula:-

Incentive Floor Space =          .      Z        .

(MV- C)

(The definitions of MV and C are given in the foregoing paragraphs)

Floor space worked out by the above formula will be available to the developer/Cooperative Housing Society free of cost over and above the 1.00 permissible F.S.I.

(9) In the above formula, it is presumed that the developer shall bear the entire cost (i.e. 100%) of redevelopment work.  It is expected that 80% to 85% old and dilapidated buildings in the suburbs and extended suburbs, which are in need of redevelopment will participate and take the benefit of this scheme, if the above formula were to be used for redevelopment of old buildings (in need of redevelopment) in the suburbs. Each building will get the incentive floor space index as per the above formula.  Total Floor Space index (inclusive of the incentive floor space index) will be limited to 2.00 F.S.I.

APPENDIX “B”

The premises (Basis) considered by the committee for determining the formula for working out incentive floor space index.

In determining the said formula factors such as the rate of cost of construction fixed by the Municipal corporation, the prevailing market rate of sale (per Sq. metre) for residential user of flat as indicated in the Ready Reckoner, have been considered.  Because of determination of the formula, unnecessary future controversies or difficulties can be averted while sanctioning any scheme.           It will ensure objectivity, fairness and transparency in the Modus Operandi.  It will avert delay in the decision making process.   In using this formula the following premises and ancillary factors are specified.

* The Commissioner, Municipal Corporation of Gr. Mumbai shall declare the rate of cost of construction for rehabilitation on the 1st of January every year. It will be treated as a valid rate.  It would be advisable to declare the rate by dividing Greater Mumbai into 4/5 divisions.

* The developer will have to bear 100% cost of rehabilitation construction in respect of the additional area allotted to the landlord and the resident of the society. Hence, tenement holder will get a flat in the redeveloped building free of cost.

* In computing the cost of construction, the profit of the developer will be pegged at 25% of the cost of rehabilitation construction.  Moreover, 5% of the cost of rehabilitation construction will be added in working out the rate of cost of construction, as incentive to the occupier, landlord of the land/building. This amount will be available to the occupier or landlord towards compensation in respect of land or building.  As indicated above, in determining the rate of cost of construction due regard shall be had to the realistic cost of project and the factors mentioned above.

* For this purpose the rate of sale per Sq. Metre for flats as indicated in the yearly Ready Reckoner should be considered.  This Scheme should be made applicable as per village and case, along the lines of Ready Reckoner, which divides suburbs and extended suburbs into 105 villages.

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