Banthia is state’s new chief secy

Mumbai: Chief minister-Prithviraj Chavan on Thursday appointed Jayant Kumar Banthia, IAS officer of 1977 batch, as the new chief secretary in place of Ratnakar Gaikwad, who retired on May 31. 

    Banthia, who was the additional chief secretary (public health), will have a tenure of exactly one year. In the zone of consideration were additional chief secretary (school education) J S Saharia and MMRDA commissioner Rahul Asthana. Apparently, state pollution control board chairman J S Sahani and additional chief secretary (general administration) Anna Dani, both belonging to the 1976 batch, were not considered as they will be retiring soon. Dani is retiring on June 30, while Sahani will retire on October 30. 

    A section of bureaucrats were expecting that Gaikwad will get an extension of three to six months, however, he had made it clear to Chavan that he was not keen. In the recent past, former municipal commissioner Subodh Kumar, former chief secretaries Prem Kumar and Johny Joseph and former DGP Ajit Parasnis were granted extension after retirement. 

    After his initial postings as chief executive officer of a zilla parishad, Banthia was appointed collector, Bhandara. After a three-year stint, he took up a central deputation post as director of census operations under the ministry of home affairs, where he was promoted as registrar general and census commissioner and held the post till May 2005. In June 2005, he was appointed the chief technical advisor with the United Nations population fund. On January 6, 2010, he returned to the state government and was appointed commissioner, family welfare. Last year, he was promoted as additional chief secretary (public health). 

    The biggest challenge before Banthia will be to convince Chavan on filling up key vacancies and shifting of 50 bureaucrats, who have completed their three-year tenure long back. 

'Focus should be on infra, rental housing' O utgoing chief secretary Ratnakar Gaikwad said the state needs to focus on city's infrastructure and rental housing. "Projects like metro and monorail need to be pushed. The state needs to create rental housing stock. The aim is to create five lakh houses in five years," said Gaikwad, adding that he would have liked to do much more for the city's infrastructure.— Sanjeev Shivadekar

J K Banthia with the CM

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House-hunters beat bandh for Mhada lottery

Mumbai: For Vinayak Pagare, a 40-something businessman owning a travel agency, early afternoon is normally the time he meets prospective clients in his Thane office. But, this Thursday was different for Pagare. Notwithstanding the bandh call to oppose petrol price hike, Pagare and his wife were at Rang Sharada auditorium at 11 am where the lottery to sell 2,593 Maharashtra Housing and Area Development Authority (Mhada) flats was being conducted. 

    "I know winning a lottery is pure luck, but being present at the venue and hoping against hope to win a home were more pressing concerns than that of the bandh,'' said Pagare, after spending a disappointing one-hour watching the giant screen roll out names of successful winners of Mhada lottery. 

    This is the third time Pagare didn't win a flat inthe lottery. 

    Pagare was not the only one. A large number of Mumbaikars—though not in lakhs as in earlier lotteries—had beaten bandh concerns to turn up at the venue. "I wanted to see how the lottery was conducted and was hoping my family wins a flat,'' said Maya Korde, a 30-something film artiste from Goregaon. She, along with her kin, had applied in 10 projects. S B Ballal, a retired professional and his wife, had come all the way from Pune to reach the venue at 11am. 

    The bandh apart, Mhada's decision to reject 11,179 applications over discrepancies in details provided saw angry protests by applicants. According to an aggrieved applicant, Dr Ashok Sabale, "Either Mhada is confused about its own rules or the software is faulty. How can applications of a couple be rejected merely for bearing the same bank account number? Is it not obvious that a working couple like us could hold a joint bank account but have separate PANs?'' 

    Mhada had rejected all six applications made separately by Sabale and his wife. Satish Gavai, Mhada's chief executive officer dismissed the protests as stray incidents. "We were very clear that no concessions would be given this year and that every applicant should hold a unique bank account and a PAN card. We did this as only agents have the financial capacity to apply in multiple projects,'' said Gavai. 

    Prabhu Khot, an accountant who volunteered to work as an observer in the lottery, won an LIG flat in Malwani. Khot won the lottery after applying three times. Similar was the case with Renuka Bhopale, a Mhada employee, who won an MIG flat in Malwani. 

Next draw in 2013 

Mhada is planning another lottery to sell 4,272 flats in 2013. Of these, the bulk of 2,486 flats will be located in Virar for Land MIG flat purchasers. The rest of the flats are located in Kole Kalyan (Santa Cruz), Charkop, Malwani, Powai, Mulund and Kurla and will comprise Economically Weaker Section, LIG and MIG buyers. There will no flats for the HIG.

QUICK CHECK: Hopefuls at the lottery

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MHADA lottery 2012 declares 2,593 winners; check your luck

Mumbai: The Maharashtra Housing and Area Development Authority (MHADA) has announced the lucky-draw results for MHADA lottery 2012, for the sale of 2,593 flats in Mira Raod, Sion, Borivali, Kurla, Charkop areas of Maharashtra. The results are available at the Board's front office at Bandra.

https://lottery.mhada.gov.in/results/publishdata/MUMLOTMAY2012/draw/MUMLOTMAY2012.html#WinnerList

https://lottery.mhada.gov.in/results/publishdata/MUMLOTMAY2012/draw/MUMLOTMAY2012.html#WaitList

MHADA is expected to upload the results over website: http://mhada.maharashtra.gov.in/.

MHADA lottery 2012 are mainly targeted at low-income group (LIG) and middle income group (MIG) category - only 172 for high income group (HIG).

To avoid any scam-like situation, MHADA had cancelled over 6,000 applications over discrepancies in the details provided in the application.

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Mhada rejects 11k lottery applications

Mumbai:The Maharashtra Housing and Area Development Authority (Mhada) has rejected 11,179 forms of those who had applied for 2,593 flats to be sold through lottery on Thursday. This is the first time that the authority has cancelled so many forms before the lottery was held.      Now, the number of applications has dropped to approximately 1.4 lakh from the earlier over 1.5 lakh.      Mhada officials said the rejection followed a major scam wherein an inquiry committee found that 425 winners of the 2011 lottery had submitted fake addresses and bank account numbers. While 100 winners resubmitted their papers for fresh scrutiny, the committee found that nearly 30 applicants had won the lottery more than once since 2006. Mhada is soon expected to file a FIR against the applicants who submitted fake papers and brokers who are involved in the scam.      According to a Mhada Act provision, the board is supposed to scrutinize the documents before including them in a lottery. However, the board does not invite any enclosures from the applicants as the form is filled online, and hence, the procedure for scrutiny is dropped. This works to certain applicants' advantage as they fill forms repeatedly. "To avoid a repeat of 2011, we insisted that every applicant submits address proof and Permanent Account Number this time," a Mhada spokesperson said.      An analysis revealed that Pratiksha Nagar in Sion was the preferred location for middle-income group category buyers. Mhada has received more than 18,000 applications for the 84 flats in Pratiksha Nagar. Projects at Malwani, Malad received the highest low-income group applications—14,787 for 282 flats while Vinobha Bhave Nagar received 14,339 applications for 137 flats. Powai with 55 flats was the preferred location for 11,897 high-income group buyers.      TURNED DOWN  • Four forms rejected due to wrong names on Demand drafts  • 6,385 applications rejected as a single person has applied under various income groups for same and different projects  • 618 rejected as a single person has applied under SC, ST and general categories for the same project  • 3,995 had same bank account numbers but different names  • 177 bore same Permanent Account Numbers but different names

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Growth complimenting real estate

IF THE PLETHORA OF CONSTRUCTIONS OF RESIDENTIAL COMPLEXES IS ANY INDICATION, THEN NASHIK IS WELL ON THE WAY TO BECOME THE MOST SOUGHT AFTER RESIDENTIAL HUB OF MAHARASHTRA. THANKS TO THE IMPETUS ON INFRASTRUCTURE RELATED WORK IN VIEW OF THE UPCOMING KUMBH

year 2003-04 was pretty significant for Nashik as this was the time when the 12-yearly Kumbhmela took place here. Many a trade pundit say, the last Kumbhmela was not just a 12-yearly mega religious affair, but it also introduced Nashik to the world as a growing town that had all the ingredients of becoming a mega city. The rest has been history since then. Nashik has taken huge strides in almost every field of development. While the next Kumbhmela of 2015-16 is fast approaching, by then this city for sure will introduce itself as the most modern and well planned city of the state. 

    Nashik is fast reinventing its skyline to move beyond its image as a pilgrim city and an emerging market. It's just a matter of removing the tag of tier II city attached to it and check what is not available in Nashik currently that is in Mumbai and Pune. 

    Closer to Mumbai and Pune, Nashik city has always attracted people from various corners. Compared to the adjoining metro cities, the pollution here is much lesser. These two factors, complemented with employment and education opportunities as well as health facilities has worked wonders for attracting investments into Nashik . 

INFRASTRUCTURE 

Even as investments are pouring in here, what needs to be noted is that the development is completely planned and not haphazard like other metros. Many builders say the load on the infrastructure in Nashik is not as much as it is in other cities. Residents in bigger cities have to struggle day-in and out to reach offices and then back home. Nashik has not reached that state and it won't be even in the future given the planned development. Anant Rajegaonkar of Suyojit Builders says, "the four laning of the Mumbai Agra Highway, between Mumbai and Dhule has put Nashik's real estate industry in great demand. This has also given rise to a large number of people from North Maharashtra setting their base in Nashik to fulfil their needs of employment, education and entertainment." 

    "What now Nashik needs is self supporting schemes. The Municipal Corporation can do this in its upcoming Development Plan. The fringe areas of the city also need to be considered as part of the Municipal Corporation limits and developed accordingly since sooner or later they will also be a part of the city," adds Rajegaonkar. 

INDUSTRY 

The role of the Special Economic Zone coming up at Sinnar -25 kms from Nashik is going to play a big role in the development of Nashik . Once the 1023 hectares under the SEZ is developed completely there would be no looking back for Nashik. 

    The booming wine industry also needs a mention that has put Nashik under the spotlight. Known as the wine capital of the country, about 50 per cent of the total wineries are located here due to which within a span of less than a decade, Nashik has created another new identity for itself and that too at an international level. All such things including the rising mall and multiplex culture are attracting tourists thereby triggering growth in the regions economy and that in the real estate. 

    Informs Narayan Hemnani of Sadguru Properties, ever since the four laning of the Nashik-Mumbai highway, quiet a few companies have come up in the Gonde Region. The easy availability of labour and the vicinity to Mumbai, many industrialists are finding Nashik as the best option to expand their businesses in Nashik. 

QUALITY/PRIZE FACTOR 

It's said that the best time to invest in any market is at its initial stages or when prices fall. Says Naresh Karda of Karda Constructions, "prices would shoot up by the upcoming Kumbh Mela. Once the ring roads are complete by the time of Kumbh Mela, connectivity would improve vastly. Today Nashik is offering different options for different income groups. Home buyers need to make the most of the current phase." 

PROJECT LOCATIONS 

Sachin Bagad of Sachin P Bagad Engineers, Builders & Developers while informing about project locations, says people want their homes to be located at strategic locations where schools, colleges and malls and multiplexes are nearby. 

    Meanwhile, Sandeep Thakur of Shree Buildcon has a different take. There is also demand of homes which are away from the hustle-bustle of the city. As of now, mall and multiplexes are coming up everywhere. Thus what people want is peace of mind, pollution free environment and sufficeint open space in the residential premises itself so that their children do not have the need to go anywhere outside their complex. New dynamics of homes are happening everytime, he says. NASHIK AT A GLANCE 

Equidistant from Mumbai, Pune and Surat 

Perfect climatic conditions 

Improved road, rail and air connectivity 

Burgeoning educational institutes 

Huge green agricultural backup

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1.38L APPLY FOR 2,593 APARTMENTS 53 Mumbaikars to fight over each Mhada flat this yr

Mumbai: More than 1.38 lakh prospective buyers submitted their applications for a Maharashtra Housing and Area Development Authority (Mhada) flat at Axis Bank branches on Thursday, the last day to apply for the 2,593 flats on sale. 

    Mhada officials say the response is overwhelming as compared to 2011. In 2011, with 1.31 lakh applicants vying for 4,034 flats, there were roughly 32 applicants trying their luck for each flat. In 2012, the number 

has almost doubled to roughly 53 applicants per flat, as 1.38 lakh applicants vie for a share of 2,593 flats located at Mira Road, Sion, Kurla, Powai, Charkop and Borivli. The final list of category-wise successful applicants will be declared on May 28-29, after the forms are scrutinized for eligibility. Of the 2,593 flats, 1,726 flats are in Mira Road, while 867 are in Sion, Kurla, Borivli, Powai and Charkop. 

    A majority of the flats belong to the low-income group category and only 172 are for the high-income group. 

    To avoid last year's fiasco, where over 300 applicants had submitted fake addresses, Mhada has this year insisted on applicants submitting address proof and a photocopy of their Permanent Account Number. 

    The lowest range of Mhada houses starts from Rs 15 lakh in Kurla and 19 lakh in Malad for 200 sq ft, plus apartments meant for the low-income groups. Even the most expensive 700 sq ft plus two-bedroom apartments for high-income groups cost Rs 55 lakh in Powai and Rs 57 lakh in Borivli, which is far below the market rate of such houses. 

    In comparison, data of under-construction and ready-tomove-in houses by private developers in Mumbai shows that the least expensive house in Mumbai costs Rs 60 lakh, while the price of an average house is as high as Rs 2.18 crore. 

    The response to the lottery is akin to that witnessed in the past three years. In the year 2010, Mhada sold 5.2 lakh forms for over 3,400 flats, of which 3.28 lakh were deposited at Saraswat Bank branches. Similarly, in 2009, 7.56 lakh forms were sold for over 3,000 flats and of these, 4.33 lakh forms were deposited at the bank. In 2008, 1.89 lakh forms were sold for over 2,000 flats and 65,000 forms were deposited at the bank.

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‘No civic nod needed to plaster house’

Mumbai: A citizen does not require civic permission to plaster his/her house, said the Bombay high court, even as it rapped the BMC over a man's application to repair his dilapidated premises in Malad (E). 

    Avacation division bench of Justice S J Kathawalla and Justice P D Kode made the observation while hearing a petition by Kiran Mirani, who occupies three rooms in Harji Patel chawl. He uses two rooms as a shop and lives in the third. 

    Mirani had applied to the local BMC ward office in May 2011 for permission to re-plaster walls and repair/replace the roof of his premises. Mirani said due to heavy leakage during the rains, extensive damage was caused to grains and other items stored in his shop. 

    The judges were miffed that despite repeated applications to the BMC to allow Mirani to repair the walls and the roof, the civic body did not respond. At one point, they even indicated that they would summon the civic commissioner to reply to the court's queries after BMC advocate Mamta Bhoir said she had no instructions from the ward office (P-North) and struggled to come up with answers. 

    Bhoir said under Section 342 of the BMC Act, Mirani had to fill up a form and an inspector would then visit and examine the premises. The judges said citizens who approached the BMC must be informed of the procedure, if any. "Did you tell him he has to fill a form?" asked Justice Kathawalla. 

    Perusing the section, the judges pointed out that if Mirani was only interested in replastering the walls and repairing/replacing the roof with the same material (asbestos sheets), it would fall under the category of tenantable repairs and no permission was required for the same. "If I plaster my house, I require your (BMC) permission?" asked Justice Kathawalla, adding, "You (BMC) should have told him (Mirani) that permission is not required." 

    Allowing Mirani to re-plaster the walls of his shop and repair the roof, the judges restrained the BMC from obstructing him in any manner. 

What the rule says 

    No permission is required for plastering, painting, changing floor tiles, repairing bathroom /toilets, washing places or repairing/replacing drainage pipes , sanitary/ water, plumbing and electrical service lines, repair/ replacing roof with same material, without altering floor height.

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HC to Bombay Dyeing: Hand over land to BMC, Mhada

Mumbai: Textile major Bombay Dyeing will have to hand over massive chunks of its sprawling mill properties in Dadar-Naigaon and Lower Parel to the Brihanmumbai Municipal Corporation and Maharashtra Housing and Area Development Authority (Mhada). 

    The Bombay high Court on Friday dismissed petitions challenging stop-work notices to Bombay Dyeing for its failure to hand over one third of its mill land to the BMC to set up compulsory open spaces and recreation grounds and another one-third to Mhada for affordable low-cost houses. 

    A division bench of Chief JusticeMohit Shah andJustice Roshan Dalvi vacated the court's earlier stay on the stop work notices. The court has stayed its order for eight weeks to allow Bombay Dyeing to file an appeal. 

    The court's order means that Mhada and the BMC will get around 65,000sq ftof landin prime locations in the city. Activists and the state have been fighting to ensure erstwhile mill lands benefit the public and are not only used to house private residential and commercial towers and the order is a major victory for them. 

    The projects are coming up on the company's erstwhile mill plots, Spring Mills in Dadar-Naigaon and another in Lower Parel. The plans for the mills include a 38-storey residential-cum-commercial and retail, IT spaces and a hotel. 

    The stop-work notices (dated March 26, 2010) were issued on theordersof the monitoring committee headed by Justice (Retd) B V Chavan, which was set up to oversee mill land development projects. 

    Senior advocate Navroz Seervai, counsel for Bombay Dyeing, had argued that the company wascarrying outconstruction on its existing builtup land and the question of handing over plots to the BMC and Mhada would come up only when it completed construction on 30% of the remaining plot. Mhada's lawyer G W Mattosopposedthis argument,saying there was as no concept of built-up land under the rules.

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The developers and the government have begun a serious dialogue to redress the issues facing the realty sector

A JOINT EFFORT

The real estate sector plays an important role in the growth of every state. However, the scenario in the country's business capital of Mumbai has not been very encouraging. The percentage of housing stock in the city has declined in the last one year. With the approval system caught in a limbo, projects have not taken off as planned, causing severe delays and supply crunch, also putting pressure on prices. Developers feel over-regulation has slowed momentum in the industry. 

    Boman Irani, CMD, Rustomjee points out, "Four years ago, the Mumbai Metropolitan Region topped the housing supply index but today the region's housing stock has dropped by one-third. NCR has moved ahead in the number of newly created homes (sq. ft.) in the last year standing at 22.7 million, followed by 14.8 million in Bangalore, 10.4 million in Pune and only 7.2 million in Mumbai and MMR." 

    Talking about the importance of affordable housing, Vyomesh Shah, MD, Hubtown Ltd. shares, "Mumbai is a mega-metro with a huge population of over 20 million. In the absence of any mass low rental housing stock and demand far exceeding supply, the city is witnessing creation of more and more slums and other illegal structures. Government must swiftly act to create affordable housing and provide relief to the city and its people." 

    Healthy economic conditions and easing of credit policies are important factors to help generate affordable housing in a metro such as Mumbai. High cost of land is also a factor that goes against the concept of affordable housing in Mumbai. Paras Gundecha, Chairman, Gundecha Builders and President, MCHI-CREDAI says, "Developers in Mumbai pay an exorbitant cost to procure land, making it inevitable for them to pass on these costs to consumers. The Government has to play a vital role in bringing down these costs. The government can also provide more FSI to builders in order to facilitate development of affordable housing projects. Furthermore, private and government flats of 269 square feet can be built as per the demand from consumers." 

    Getting the necessary clearances in time has been cited as the key bottleneck. There is a backlog of almost 500 files waiting to get the environmental clearance. Mayur Shah, MD, Marathon Group and VP, MCHI-CREDAI says, "For clearances, one has to deal with multiple agencies, both in central and state government as well as the local municipal bodies that cause severe delays in the project execution. Almost 18-24 months are lost simply in securing the requisite permissions, which increases the project cost by 40%. Especially getting the environment clearance is a big hurdle; the committee has not been able to clear more than 65 proposals in the last one year so the backlog is huge. After buying land, the interest cost paid by the developer is 15-20% so land holding becomes a major cost." 

    Speedy approvals are critical if we want to generate affordable housing in the city, believes Dharmesh Jain, CMD, Nirmal Lifestyle. He says, "The process that used to take only 30 days before has now run into 500 days. The demand for affordable housing is huge but we are not able to create enough supply in time. Only volumes will rationalise the prices." 

    Mayur Shah adds, "Though the input cost is not under our control, the price escalation due to delays can be at least avoided. Infusing more supply in the market will ease pressure on prices and change the equation." 

    Developers also shared that other states have moved far ahead when it comes to speedy approvals, especially in places like Gujarat and Bangalore, where getting approvals takes a maximum of just 60 days. 

    Giving high priority to affordable housing, Chief Minister Prithviraj Chavan recently met the city's top developers at a meet organised by MCHICREDAI. The developers put forth a detailed presentation talking on several industry issues, also deliberating on the formation of a special committee for real estate. The meeting, which took place on May Day, saw the CM in full attendance with his various secretaries, which is a positive sign. The CM has assured the developers that solutions would be found in a time- bound manner. 

    Bandish Ajmera, Director, Ajmera Realty and Infra India Ltd. says, "The CM personally discussed the issues raised with senior bureaucrats from various government verticals to ensure that the whole 

process is on fast track. MCHI has requested formation of a special committee which will deal with the day-to-day issues and maintain a follow-up with the government on the issues." 

    Divulging the developer wish-list presented to the CM, Vyomesh Shah says, "The government has promised us action on a war-footing basis. However, creation of adequate supply of new homes is a key challenge. We have asked the government to reduce total approval time to a maximum of 60 days. Mumbai also has a huge scarcity of land, which can be tackled by increase in FSI. But the immediate requirement is to reduce approval time, which will kickstart the process of creating 

more homes and bringing prices down. The government also needs to redefine the term affordable housing for metros and accordingly redesign the incentives on it." 

    Increasing FSI was deliberated strongly at the meeting, which, according to developers, will prove crucial in creating affordable housing stock. Deepak Goradia, MD, Dosti Group explains, "The price relating to land cost in a city like Mumbai is very high. As far as the cost of construction component is concerned, the price will increase. If the Government does not increase the FSI then it will be very difficult to become more rational to make the housing affordable." 

    Speedy approvals remained the critical concern. Gundecha says, "In the current scenario, a developer has to run from pillar to post to gain all the necessary approvals from the government. We have advocated the concept of "single window clearance" as this would cut down on the time taken to grant approvals to developers, thereby reducing the cost of the projects. If the government grants all the necessary approvals within 90 days, approximately 20% interest would come down on projects. Naturally, flats would be affordable then." 

    Concluding on a positive note, Irani says, "Mumbai has changed since the 1960s; it has expanded and needs a fresh approach. We need a long-term sustainable policy. The CM has decided to look individually into problems of different municipal corporations. These are important components of the MMR and the CM has decided to take time out to meet respective municipal chiefs and look into micro issues. We do not expect overnight miracles but are happy that the government is sensitised to problems of the sector and is willing to help. This is the first step in the right direction."

QUICK 

BYTES 

OVERREGULATION AND A SUPPLY CRUNCH ARE CREATING HURDLES IN THE WAY OF AFFORDABLE HOUSING 

DEVELOPERS ARE HOPEFUL THAT THE CM WILL ADDRESS THE VARIOUS ISSUES

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MONEY MATTERS Now, pay tax for refuge areas & open terraces

Mumbai:Even asthe new property tax system promises to provide relief to 3.87 lakh structures, which are mostly new buildings, citizens feel that money willbe recoveredfrom taxeschargedfor amenities unique to these properties. Refuge areas and open terraces, which were originally left out of taxation, for instance, will be included in the new system approvedon Thursday. 

    Refuge areas, which have been made mandatory at every seventh habitablefloor after thefirst24m of a building,will nowbecharged25%of thetotal area.Open terracesin buildingswillbe charged10%of the area. 

    In caseof high-riseswith a heightof over 30m, the first refuge area is to be provided at 24m or the first habitable floor, whichever is higher. Thereafter, the refuge area is provided atevery seventhhabitablefloor. 

    "In the earlier rateable value property tax system, the calculation was based on rent, which was arbitrary in different areas.By introducing thecapital value based system, there will be a standard way of computing taxes. Whiledoing this,we neededtotakeinto account those areas (refuge area or open terraces)wherelandisbeing used for various purposes but were left out because there was obviously no rent levied," saidofficials. 

    Meanwhile,elected representatives feel that areas such as basement, stilt parking and society offices, which are free of FSI, should be exempted from paying property tax. In the approved 

proposal, the rate of taxation for parking is 0.25% of the ready reckoner rate and 0.1% for society offices. "At a time when parking is such a big problem in the city, societies that provide parking should not be charged. If one cannot provide incentives to such societies, they should at least not burden them," saidCongresscorporator Asif Zakaria. 

    "If a society goesfor redevelopment, they may not providethebasicfacilities for fear of being chargedextra for these additional amenities. Moreover, new buildings alsouseRCC material andthe costof construction automatically goes up," he added.

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Property tax relief for new city bldgs

Mumbai: Succumbing to pressure from citizens, the BMC on Thursday tabled a watered-down property tax system before the standing committee, ensuring that taxes will be lower than those proposed earlier. Residents of pre-1996 buildings will see rates double, while those living in buildings built from 1996 to 2004 will see rates rise by 10 to 70%. Residents of newer buildings, those built after 2004, will see rates drop 30 to 60%. 

    The new tax system – which will be in effect from April 1, 2010, when the BMC started giving provisional bills – has been brought in to rationalize taxes. 

    Under the former, ratable value system, property tax was calculated according to the rent a unit commanded during the first year of its existence. New system based on Ready Reckoner rates 

Mumbai: Since the old system was based on the first-year rents, older buildings paid far lesser taxes than newer ones, until the property tax chart became lopsided. Older buildings, especially those in the island city, paid much lower taxes than many suburban constructions. 

    The civic standing committee on Thursday approved the new capital-value system, which bases taxes for all buildings (old and new) according to 

the Ready Reckoner rate. Bills will be issued retrospectively within the next three months. The civic body will return the excess money charged in provisional bills with 6.25% interest. 

    The watered-down taxation system for residential units will be based on a formula that takes into account 0.00348% of the Ready Reckoner rate and not the proposed 0.00412%, which had been struck down by the standing committee earlier this year. 

    The new rates will affect 6.62 lakh residential units of the 14 lakh in the city. Of the 6.6 lakh units, 3.87 lakh (or 27% of 14 lakh) will see reductions ranging from 30-40% and 50-60%. The reduced rates will especially benefit buildings that came up after 2005. Redeveloped buildings will be treated as new buildings. 

    Another 2.75 lakh units (19%) will see property rates rising up to 100%. Most are old houses that pay Rs 2,000 a year in tax; their rates will increase to Rs 4,000. The maximum number of such structures are found in the Andheri-Parle (West) area (50,000), the Bandra-Khar-Santa Cruz (West) area (34,000) and the Esplanade-Fort-Colaba area (11,000). 

    The remaining 7.4 lakh of the city's 14 lakh units are less than 500 sq ft (including in slums and chawls) and hence won't see any change in billing. 

    The buildings that will see lower increases or reductions are those that mushroomed after 1995, when the slum rehabilitation scheme was announced. Around 1998-99, buildings started mushrooming in Bandra, Khar, Santa Cruz, Andheri, Malad, Kandivli, Borivli and Dahisar. Around 2004, suburban Goregaon began getting new buildings. 

    In the island city, cessed buildings began to be redeveloped around 1998-99. Around 2004-05, mill areas in Dadar, Worli and Parel saw development. At the same time, Malabar Hill and Nepean Sea 

Road began getting new residential buildings. 

    The upside of the new system is that citizens can calculate their own taxes and pay them online. The civic body, which hopes for a better recovery, aims to increase revenue collection by Rs 356 crore. Currently, it collects Rs 2,800 crore from 55% of the properties. Officials are hopeful for an 85% recovery. (See box for payment formula.) 

    The suburbs will benefit more, said officials, due to the presence of more new buildings. However, the overall impact of the new system, said officials, will take some time to be ascertained. "As of today, we have just fixed the rate of property tax at 0.00348 % However, its area-wise impact across the suburbs will take time to be assessed. This, however, is auniform rate that doesn't differentiate between the suburbs and city, and hence the difference in rates will reduce," said an official. 

    Additional municipal commissioner Rajiv Jalota said the new system would ensure transparency since citizens will compute their own taxes. "People will be able to verify and calculate the taxes based on their property. This should ensure better recovery," he said. 

    The BMC is deliberating a suggestion to not issue a penalty for delay in payment of taxes this year and is likely to extend the due date to March 2013. 

RATIONALIZING THE TAX 

    Till now, property taxes were based on the rent a unit attracted during the first year of its existence. Buildings built in the 1940s and earlier, paid according to rents frozen in the 1940s 

    As rents ballooned, newer buildings paid higher taxes 

    With all buildings (old and new) now paying tax according to the Ready Reckoner rates, taxes will be rationalized. Older buildings will see increases, newer buildings reductions 

CALCULATING THE NEW TAX 

    Capital value = Built-up area in sq m* x Ready Reckoner rate x user type (residential or commercial) x construction type x age x floor Property Tax = Capital value x 0.00348% of Ready Reckoner rate * Carpet area x 1.2

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High Court restrains Mhada from selling 1% flats through lottery

Mumbai: The Bombay high court on Thursday asked the Maharashtra Housing and Area Development Authority (Mhada) not to put up all its flats for sale through lottery to be held on May 31, but to set aside 1% for the disabled. This is the second year that the HC has sent the order to the government agency. Currently, 2,593 flats are up for allotment. 

    A division bench of Chief Justice Mohit Shah and Justice Nitin Jamdar was hearing a petition filed by an NGO, India Centre for Human Rights and Law, stating that Mhada reserved only 2% against the required 3% of its flats for the disabled. The NGO's advocate, Kranti L C, argued that in 2010, the State Coordination Committee on Disability had directed Mhada to increase the quota from 2% to 3% but the agency was yet to comply. "As they had not done it last year, the court had restrained the sale of 1% of its total flats. Similar direction should be passed this year," he said. 

    Kranti also submitted that though the court had directed Mhada to rework its definition of disability to be inclusive of seven categories provided in the Persons with Disabilities Act, the agency have out flats to just two categories, blind and low vision. 

    Deferring the hearing beyond vacation, the judges directed Mhada to amend its definition of disability as well not to draw lots for 1% of its total flats.

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Chavan nod for Mhada JV policy

Mumbai: Chief minister Prithviraj Chavan on Wednesday gave a green signal to the Maharashtra Housing and Area Development Authority (Mhada)'s new policy to jointly develop affordable houses with private players by giving them a higher FSI in lieu of transferring the ownership of land to the housing board.

    According to the new policy, land owners/developers will be given a higher share of the floor space index (FSI) of 2.5 if they jointly develop plots of 2,000 sq m with Mhada. Developers will now get 1.75 FSI instead of the usual 1. In return, the private land will have to be transferred in Mhada's name and the developer will have to construct flats for Mhada from the latter's share of 0.75 FSI, for which the housing body will pay at the prevailing construction cost.

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Rental hsg altered to make scheme viable Carpet Area Of Tenements Offered To Be Increased From 160 To 300 Sq Ft

Mumbai: The state government has decided to introduce major changes in its ambitious rental housing scheme. 

    At a meeting presided over by CM Prithviraj Chavan on Wednesday, government officials agreed on the need to alter the scheme, which is yet to take off in a big way. The move came after a report by a panel headed by metropolitan commissioner Rahul Asthana to review the scheme's existing framework and suggest changes. 

    It has now been decided to increase the carpet area of tenements offered under rental housing from the existing 160 sq ft to 300 sq ft. This change was mainly driven by an observation that the tenement density would be in the range of 2,000 per hectare. 

    Assuming that a family of five resides in each tenement, the population density for each scheme would come to 10,000 per hectare. However, the decision to increase carpet area won't be applicable to 41 rental housing projects, where locational clearance has been granted. 

    Since the scheme was conceptualized five years ago, work on only 17 projects involving 38,000 tenements has begun under the existing framework. The state had projected that about 5 lakh tenements would be ready for occupation by 2012. 

    Based on the committee's findings, the government could decide to allot 50% of the housing stock generated on outright sale (on hire and purchase basis) to citizens under a lottery system. Of the remaining stock, 25% could be sold to urban local bodies, which could then decide whether to let these out or allot to PAPs, staff, whereas the remaining 25% stock could be made available to government agencies like the police and education department for their staff.

    Though the MMRDA is keen to be the nodal agency for the outright sale component, Chavan prefers Mhada. He said a final decision on all aspects would be taken in a week. 

Team to study FSI, incentive T he CM has asked a team of officials to submit a report on the FSI and incentive component which could be offered under the rental housing scheme. While the existing policy offers a uniform FSI of 4, builders had demanded lowering of total FSI component and increase in incentive component in some locations to make the scheme viable. TNN

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NMMC may clear 2.5 FSI plan for old bldgs’ redevpt

Navi Mumbai: The NCPled Navi Mumbai Municipal Corporation (NMMC) is leaving no stone unturned to secure permission for extra floor space index (FSI) for dilapidated buildings. FSI defines the permissible built-up area on a plot. 

    According to sources, the civic body is likely to sanction a proposal for 2.5 FSI during a special general body meeting on Friday. Currently, FSI between 1 and 1.5 is available for redevelopment, however, there are few takers since builders feel it is "unviable". At a later stage, the municipal administration plans to invite suggestions and objections from the public. A final proposal will then be forwarded to the state government for its approval. 

    "If the plan for extra FSI is sanctioned, then it could pave the way for redevelopment of nearly 71 dilapidated buildings in Navi Mumbai," said mayor Sagar Naik. City engineer Mohan Dagaonkar will give a detailed presentation to corporators on Friday. However, civic activist Sandip Thakur claimed that the proposal was mooted by developers who wanted to regularize FSI violations in their ongoing projects.

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Mhada sets up new website for flat applicants

Mumbai: The Maharashtra Housing and Area Development Authority (Mhada) has set up an alternative website––www.mhada.org-––for prospective buyers to download application forms for Mhada flats. 

    The new website was set up as technical glitches had marred prospective buyers efforts to access https://lottery. mhada.gov.in, the link to download the forms for two consecutive days till Thursday. 

    With both websites working smoothly, Mhada on Friday received 26 applications for flats at Mira Road while 86 applications were received for flats in Kurla, Borivli and Sion. 

    Mhada has invited online applications for the sale of 2,593 flats across the city from May 3 to May 24. Even as the technical glitches 

were rectified, the minister of state for housing Sachin Ahir said he had sought a detailed inquiry report in the matter from Mhada vicepresident, Satish Gavai. Sources said the technical snag arose as there had been a delay in registering the domain name for the Mhada website. According to the procedure, one has to give 48 hours' notice, which did not happen. Apart from this, the anti-hacking software was not compatible and thus did not load. 

    Mhada, however, has defended its website. "Since it is the first day of applications, there is a lot of rush and the website could not take such a huge load," said Vaishali Wagh, public relations officer, Mhada. 

    With real estate rates at astronomical levels, Mhada houses are in demand as they cost less than half of what private builders charge. This can be gauged from the fact that 12,216 houses for sale in the past four years attracted more 

than nine lakh applications. 

    To eliminate errors in filing of application forms experienced in the previous lotteries, two years ago, online filing was made compulsory. "I wasted the entire morning to access the website. I hope this does not happen again," said Sunil Apte, a government employee. 

    "This is the second year in a row that a premier agency like Mhada has been unable to beef up its website. I dread to think of the various difficulties I would encounter if I do win a flat," said Aaruni Shah, who works for a film production firm.

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Relax high-rise guidelines: CM

Mumbai: Chief minister Prithviraj Chavan has told the Union ministry of environment and forests (MoEF) to relax some provisions in the recently-framed guidelines on high-rises in the state. According to the new guidelines, the future of new high-rises will hinge on how wide the access road to the building is and how far the fire station is. 

    In late April, Chavan wrote to Jayanthi Natarajan, minister of state (independent charge) for environment and forests, saying that while he agreed that the provisions would be practical, it would be challenging to implement them in cities in Maharashtra. In the letter, of which TOI has a copy, Chavan said that the mandatory guidelines issued by the ministry would bring construction activity in Mumbai to a standstill. 

    "It is unfair that the location of a fire station will determine the development potential of a city. This will lead to an imbalance in development. The road width in most of our cities is well below the requisite standard and will not fulfill the criteria. In view of these hardships and practical difficulties, I request you to kindly keep this office memorandum in abeyance and give an opportunity to the government of Maharashtra to express our concerns," Chavan said. 

    He said in Mumbai, most construction projects involve redevelopment of old, cessed, dilapidated buildings, where in-situ development is carried out. Chavan explained that Mumbai has the slum rehabilitation scheme, wherein tenements for slum-dwellers and sale components for open markets are built in-situ. 

    "Both schemes are feasible only due to the floor space index (FSI) incentive, which in turn gets linked to the building height. Land is scarce in the city and all such schemes can be taken up only by going for taller structures. The utilization of transfer of development rights (TDR) on available plots also gets restricted due to limitations on high-rises," Chavan said. The CM requested the MoEF to relax these provisions for Mumbai, Pune, Nashik, Aurangabad and Nagpur.

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MLAs oppose coastal road, elevated Metro

Meet CM With Demands For Better City

Mumbai: Cutting across party lines, Mumbai MLAs opposed the coastal road and elevated Metro rail during a meeting with chief minister Prithviraj Chavan on Thursday. 

    In the course of the sevenhour discussion held at the state-owned Sahyadri guesthouse, most MLAs also voiced their protests against the new development control rules (DCR) framed during the tenure of former civic chief Subodh Kumar. Three days after Kumar retired, public representatives took strong exception to the idea, said an MLA. 

    "The coastal road will pose a threat to the mangroves in the city. Instead, the government should go for a sea link," said Congress MLA from Bandra Baba Siddiqui. The coastal road is reportedly Chavan's dream plan to turn Mumbai into a "world class city". Another MLA said, the Metro should run underground and not at an elevated level. Amin Patel, also from the Congress, took a potshot at the DCR, saying the new rules would, in no way, help reduce the cost of tenements and flats in Mumbai. "In fact, it will fuel a rise in property prices," he said. 

    "Passage areas should be excluded from the fungible FSI." After the DRC was amended, areas like flowerbeds, staircases and lifts, which were earlier free of FSI, are now counted in the fungible FSI, for which a premium has to be paid. 

    After hearing his legislators, Chavan said, "I will take up the Mumbai issues with Prime Minister Manmohan Singh and the Union minister for environment. All key and long-pending demands pertaining to the city will be discussed with central ministers. Chavan added before the monsoon session, he would study the problems of the island city and the western and eastern suburbs separately before informing the MLAs about the actions taken. He instru cted the municipal commissioner to undertake pre-rains measures so that Mumbai can be saved from being flooded. 

    Among the other demands, Vile Parle MLA Krishna Hegde insisted that those staying on the airport periphery be rehabilitated in the same vicinity, on the space being carved out for non-aeronautical purpose. Leader of Opposition in the state legislative council Vinod Tawde (BJP) said to accelerate development in Mumbai, all authorities of the state, civic body and central agencies should be brought under one umbrella. 

PLEA TO CHAVAN With Mumbai left with hardly any open spaces, reservations of existing open plots should not be changed 

The FSI offered to Koliwadas is not enough and it should be raised further. Recently, FSI in Koliwadas has been increased from 1 to 2 

There is no government hospital in the suburbs. There should be at least one state-owned hospital in each eastern and western suburb 

MLAs from the suburbs should be allowed to spend money from their kitty to repair old buildings in their constituencies

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Mhada lottery for 2,593 flats on May 31

Mumbai: After almost a year's break, the Maharashtra Housing and Area Development Authority (Mhada) will conduct a lottery for the sale of 2,593 flats on May 31. Of these, 1,726 flats are in Mira Road while 867 are located in Sion, Kurla, Borivli and Charkop. 

    It seems Mhada has learnt its lessons as the flats put up for sale are ready for occupation. 

    A majority of the flats belong to the low-income group category and only 172 are for the high-income group. Applications can be downloaded from the Mhada website from May 3. The last date to submit completed application forms in Axis Bank with the earnest money deposit is May 23. 

    The flat winners will have to pay 3.09% as VAT and 1% as service tax in addition to the cost of the house. TNN

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Building project details to be put up on BMC website soon

Mumbai: The state government will put up all project details on the Brihanmumbai Municipal Corporation (BMC) website to make the building approval process transparent. Chief minister Prithviraj Chavan announced the move at a one-hour meeting with 20 members of the Maharashtra Chamber of Housing Industry (MCHI) and senior officials. 

    "Developers will be able to track the department currently considering his project. It was suggested as developers said they have had to bribe unscrupulous employees to ensure speedy approvals of their project,'' said senior officials. 

    Building proposals currently have to be approved within 60 days. "Developers will now have to submit complete plans which will then be considered by various agencies including the building proposals department,'' said senior government officials. If a project is not cleared within 60 days, the developer can approach a redressal committee to be formed by the civic chief. 

    However, the MCHI, which had prepared a list of 10 demands including a speedy approval process, was disappointed on other issues as Chavan either rejected them or merely gave assurances. For instance, he rejected a developer's demand to scrap the need to seek approval for heights of buildings, especially those near the airport, from the ministry of civil aviation (MCA). Sources said Chavan did not seem comfortable as officials pointed out the lack of accountability in an air disaster. "The MCA is an expert body to ensure smooth flight path. In an air disaster, they will be responsible, not the civic body,'' said an official. 

    Following complaints about the delay in forming a new rental housing policy, Chavan called a meeting next week to finalise the same.

CM Prithviraj Chavan has called a meeting to finalise rental housing

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Lease lands policy revised

Mumbai:In a decision expected to impact redevelopment of scores of properties in Mumbai, the state administration has decided to levy a premium on redevelopment of lands leased by the government. 

    The state revenue department will impose a premium of up to 10% of a plot's market value on redevelopment proposals for leased lands. 

    The proposal, which will be applicable for lease lands across the state, could come up for discussion at the state cabinet meeting on Wednesday. The proposal comes barely two weeks after a Comptroller and Auditor General (CAG) report came down heavily on the government for mismanagement of revenue lands leased to private institutions and trusts. 

    The decision has special bearing on close to 1,200 leased lands in Mumbai. A number of these have been allocated at nominal rents for lease terms that extend to 90, 99, and 999 years. Some have even been allocated in perpetuity. 

    "Value of the land rises manifold after redevelopment. Laws applicable to such lands lack provisions to collect premium. As a result, the government does not benefit from redevelopment despite being the plot owner," the proposal says. 

    A premium of 7.5% of the market value would be applicable for redevelopment of plots meant for residential, educational, and religious purposes, whereas, 10% in other cases. 

    The policy will also be applicable for proposals sanctioned six months before it comes into force. An NOC would have to be procured from the revenue department within six months for such cases, the proposal states. A penalty amounting to another 5% of the market value would be imposed on those missing this deadline. An additional premium of up to 10% will be collected for additional built-up area sanctioned over and above the permissible base FSI. 

    A penalty of 1% of market value will be collected annually for delays in initiating and completing the redevelopment work. Also, the premium, in such cases, would be computed on the basis of the prevalent market value on the day work commences.

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