MAJOR BOOST FOR REDEVELOPMENT All cessed bldgs to have FSI of 3

Mumbai: In a major boost for redevelopment of over 14,000 cessed buildings in South Mumbai, the state government on Friday announced that a floor space index (FSI) of three will be extended to B and C category buildings (constructed prior to September 30, 1969). The buildings, pre-1969 tenanted properties in the island city, are classified into three categories: A (pre-1940), B (1940-1950) and C (1950-1969). 

    Chief minister Prithviraj Chavan, replying to a debate on the issue in the state legislative assembly, said that all categories of cessed buildings will now have anFSI of three. This followed a demand from Amin Patel (Congress). 
    "Developers never paid attention to B and C cessed buildings as only A category buildings used to get that FSI. Many buildings which used to be neglected by developers for want of incentives can now go in for redevelopment," Patel said. 
    Chavan said the government would encourage cluster redevelopment in the city. "Individual development of buildings does not create social infrastructure. The government has decided to amend rules to get proper parking, gardens and open spaces and other facilities for citizens," he said. 
    Chavan said the first phase (Sector 5) of redevelopment of Asia's largest slum, Dharavi, will be ready by the year-end. The building has stilts plus 18 floors and has 356 flats, Chavan said. Shiv Sena leader Subhash Desai said, "The Congress-NCP should give 400 sq ft flats to slum-dwellers." 
    But Nawab Malik (NCP) alleged that the saffron party was playing politics over the redevelopment issue. 
    Chavan also expressed "displeasure" over the pace of the airport slum redevelopment project. The project, involving the rehabilitation of nearly 75,000 slums, was assigned to HDIL in 2007. The government had set 2011 as the initial deadline for completing the project.

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Cong clear loser, but BJP still far from victory: Poll Regional Bosses Could Emerge As Major Force

We could end up with a Lok Sabha in which, for the first time, the single largest party has less than one-fourth of the 543 seats and no front has even a third. That is what would happen if elections were held now, according to a Times Now-CVoter opinion poll. It projects that the NDA would win 156 seats with the BJP getting 131 of them, while the UPA would win 136 with the Congress pegged at 119.      The poll estimated that the 'Third Front', which includes the Left, SP, RJD, TDP, BJD and some other regional parties, would win 129 seats and the 'Fourth Front', including the BSP, Trinamool Congress and AIADMK, would win 122. In short, there could be a fairly even four-way split, though the Third and Fourth Fronts are not really firmly established, at least as of now, and others  may also morph in the coming months. Poll gives Sena-BJP 26 seats, 17 to Cong-NCP in Maharashtra      If the predictions of the Times Now-C Voter opinion poll come true, the SP, BSP, Left, AIADMK and Trinamool would each have between 22 and 33 seats, possibly giving them a crucial role in the formation of the next government in New Delhi.      With the two big national parties put together not winning even half of the seats, the regional bosses would really be able to call the shots in such a scenario.      Among the bigger states, the poll projects SP and BSP between them winning threefourths of the 80 seats in UP, with the SP picking up 33 and the BSP 27. The Congress, which won 21 seats in the state in 2009, is projected to win just five in 2014 and the BJP is estimated to gain just a couple of seats to get 12.      In Maharashtra, it's advantage NDA and bad news for Sharad Pawar's NCP, if the poll has got it right. It estimates that the Shiv Sena will win 15 seats of the state's 48 seats and the BJP 11, the same as the Congress. The NCP is projected to get just 6 seats, Raj Thackeray's MNS opening its account with 3.      In Andhra Pradesh, a state in which the Congress won 33 of the 42 seats in 2009, the CVoter poll projects it will win a mere 7. Jagan Reddy's YSR Congress, a party that didn't exist in 2009, is estimated to win 14 seats and the Telengana Rashtra Samiti 11, leaving just 7 for Chandrababu Naidu's TDP. Of course, the AP numbers could change dramatically once the formation of Telangana is announced, as expected soon.      In West Bengal, Mamata Banerjee will continue to fly high despite her alliance with the Congress having broken up since the last elections. The poll projects that the Trinamool Congress will win 22 of the state's 42 seats and the Left will win 17, a gain of two seats for each of them, while the Congress tally will drop from 6 to 2. In Bihar, the break-up between Nitish Kumar's JD (U) and the BJP seems to be hurting the former more. In fact, the poll projects that the BJP will emerge as the single largest party in the state winning 14 of the 40 seats, Lalu Prasad's RJD coming a close second with 12 and JD(U) in third place at 11.      For the full report log on to www.times of india.com

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Coming up in BKC, a convention centre bigger than Nariman Pt RIL Gets State OK To Develop 82 Lakh Sq Ft

Mumbai: Plot C-64 in Bandra-Kurla Complex (BKC) may well be the city's largest construction site. The sanctioned builtup area, 82 lakh sq ft, on the 18.5-acre plot will be equivalent, or perhaps more, than that of Nariman Point, which has over 35 office towers, each with a built-up area of about 2 lakh sq ft on an average. 

    The BKC plot's developer, Reliance Industries Ltd (RIL), recently began work on a much-delayed exhibition-cum -convention centre, commercial complex and service apartments. The project got the state environment department's clearance last month. 
    Plans cleared include an 18-storey tower with four basements for parking, a commercial complex and a 348-room block of flats. Most of the builtup area will comprise parking, lobbies, staircases and terraces (non-FSI areas), with living space being 33.5 lakh sq ft. Rival firm dragged BKC project to court 
Mumbai: Work has commenced on plot C-64 in BKC and will tak ethree years to complete, said MMRDA commissioner UPS Madan. The authority, which controls BKC, earned a few thousand crores in a decade by selling plots on long lease. 
    An RIL spokesperson said designs were being finalized for the Rs7,566-crore project. 
    What led to the delay?RIL(its chairman is Mukesh Ambani) won the bid in January 2006 after quoting Rs 1,104 crore, a record. An RIL representative had then said Mumbai was soon to get a world-class convention-cum-exhibition centre "between Dubai and Singapore". 
    But Mukesh's brother Anil, whose Reliance Communications & Infrastructure Ltd (RCIL) was a strong contender for the plot, moved court. RCIL objected to MMRDA's grant of additional built-up area to RIL after the bidding process. RCIL questioned MMRDA's ''largesse and bonanza'' to RIL after the ''tender wasduly approved''.Describing the decision as ''totally irrational, arbitrary and capricious'', RCIL said it would have quoted higher (its bid was Rs 1,011.12 crore, Rs 93 crore less than RIL's) had it known that MMRDA would sanction additional construction rights. A source said the dispute between thebrotherswas resolved. 
    Two years ago, the Wadhwa Group was believed to be negotiating with RIL to jointly develop the plot. When bids were invited for the plot in 2004, the highestoffer wasRs75croreby a pandal decorator. It was promptly rejected: not only was it too low, but also the company wantedtodefer payment.

Cost of plot | 1,104cr Project cost | 7,566cr Completion by | 2016

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NO RELIEF FOR WORLI BUILDING Can’t regularize illegal structure by buying FSI: HC Court No To Penalty Option Too

Mumbai: Buying extra floor space index or paying a penalty cannot be a way to regularize an unauthorized construction, the Bombay high court has ruled. 
    Refusing to come to the aid of a seven-storey building in the Campa Cola compound in Worli, Justice Roshan Dalvi upheld an order vacating the stay on the demolition of the top two floors of Shubh apartments. 
    "Purchase of the FSI cannot legalize such unauthorized construction," said the judge. 
    The court said that if the building rights in the form of FSI of a plot or layout were exhausted, then additional unauthorized construction cannot be authorized in violation of the sanctioned plans. "Just as all constructions must conform within the extent of the FSI for its regularization on an individual plot, all construction in a layout must conform to the total FSI of the plot in that layout. That having been exceeded, the construction would be in violation of the Municipal Act. That would also be wholly unauthorized construction that, therefore, cannot be protected," the court said. 
    The judge said that the total FSI of the plot had been exceeded by Shubh and other buildings in the Campa Cola compound layout and the BMC "could not and has not regularized the unauthorized construction of the 6th and 7th floors, which is in excess of the sanctioned plans". 
    The plea that the BMC had rules allowing payment of penalty for regularization did not find favour with the court. "The work may be regularized by penalty if it is within the permissible FSI and consequently approvable," the judge said. 
    In February, the Supreme Court had ordered the demolition of the irregular floors of buildings in the Campa Cola compound.

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SWAMINOMICS Tribals finally get land rights, using GPS technology

SWAMINATHAN S ANKLESARIA AIYAR 

Last week I visited tribal areas in Gujarat to see how technology and an activist NGO could empower once-powerless tribals to get their full land rights under the Forest Rights Act, 2006. 
    The Act provided for land titles to be given to tribal plots in cultivation inDecember 2005. Earlier, government takeover of forests had converted forest dwellers into encroachers on land they had occupied for centuries. Their villages and farms were always at risk of demolition by forest departments. The Act was supposed to end this inequity. Many state governments soon claimed, falsely, that they had implemented the Act, empowering lakhs.In fact implementation was terrible. No proper maps or land records existed in most areas. Semi-literate villagers were supposed to fill long forms and file claims. Forest Departments contemptuously vetoed most claims. 
    Under the Act, gram sabhas certified which plots were cultivated by individual families in 2005, and forwarded the documents to the state government. But 128,000 of the 182,000 claims filed in Gujarat were fully or partly rejected. Even in the accepted cases, only part of the claimed area was approved. ARCH (Action Research in Community Health and Development) and other NGOs appealed to the High Court. The Court pulled up the state government and decreed a review of claims, allowing many sorts of evidence (including panchnamas, case records, official receipts and satellite images from Google Earth as well as the National Remote Sensing Agency) to establish ownership. 
    This opened the path for redress. Yet the traditional survey method of triangulation to establish the boundaries and area of each farm plot was onerous. Then ARCH came up with the idea of using GPS (global positioning system) hand-held devices costing Rs 12,000 apiece. Holding a GPS device, a tribal simply walked around the perimeter of his plot and pressed some buttons. The device automatically sketched a map of his farm, with the right latitude and longitude and exact area. 
    This enabled every family to produce a map of its holding, and get it verified by the gram sabha. All individual maps were then superimposed on a satellite image of the village dating from 2005 (the deadline under the Act). This produced a detailed map showing the exact size and ownership of every plot. Land disputes arose if two villagers walked over the same area, and disputes were settled by the gram sabha before certification. Any encroachment on forest land after 2005 showed up clearly after superimposing today's maps on the 2005 satellite image. This assuaged the Forest Department's fears. 
    Thus a simple technology promoted by activist NGO provided a quick, elegant solution. The overall village map was then uploaded onto the internet, empowering any villager to go to an internet café in a nearby town and print out a copy. This ended tribal dependence for land documentation on government departments or NGOs. Tribals are willing to pay Rs 60 to ARCH for this service, roughly enough to cover all costs. So, the project can be expanded without limit with no subsidy or donations. . 
    The new approach yielded far better outcomes. When tribals re-filed claims using these maps and additional evidence like panchnamas and receipts, government acceptance of claims went up to 61 out of 63 in one village, and 96 out of 112 in another. ARCH hopes to average 90% success. Early project villages are training their neighbours in using GPS, speeding up tribal capacity. The project has so far covered 150 tribal villages, just one-tenth of the total. It may take 18 months to cover all villages. 
    The Gujarat tribals say formal ownership makes a huge difference. They are no longer treated as encroachers, and so are entitled to all government schemes for agriculture, including land leveling and well digging on their lands under MNREGA. Earlier, the forest department banned the entry of tractors into forest land. But after getting ownership recognition, tribals say they use tractors on 90% of plots, because these are faster and cheaper than bullock ploughing. They want to modernize fast. 
    There is an urgent need to spread this approach to all forested states. The Liberty Institute and ARCH are trying to do so (see www.fra.righttoproperty.org) by contacting NGOs everywhere. Some Marxist and "romantic pastoralist" NGOs oppose the very notion of individual plots, or of modernizing tribals. But less ideological NGOs are co-operating. A massive country-wide effort is needed to empower of millions of tribals, making them masters of their own plots and community land. 
    The same GPS technology could be used to help update land records across India. This may require prior work on dispute settlement, since disputes are furious and widespread. Still, the methodology has much potential.

HELP FROM ABOVE: GPS units are helping tribals carefully map their land and then get it verified by gram sabhas

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PROPERTY MANAGEMENT IN INDIA COMES OF AGE

COL ASHUTOSH BERI outlines the intricacies of the concept and highlights the benefits that societies can get from property management firms

    When Jones Lang LaSalle India first launched property and asset management services in India in 2003, the number of residential and commercial complexes being managed by an international property consultancy was minimal. The perception back then was that such professional services are too expensive. 
    With time, this perception changed and developers began opting for such services by International Property Consultants (IPCs), learning to see them as more than just manpower vendors and accepting property management as a specialised and cost-saving service. This change in the mindset is very evident with the increasing number of housing societies that are opting for professional property management services by IPCs. 
    Today, the market for professional property management by IPCs in India, is valued at around Rs 1,000 crores and is expected to grow by at least 20 per cent annually. The maximum demand for these services is in the NCR region, which has seen a massive supply of projects and has an equally staggering number of projects in the pipeline. The second-highest demand comes from the south, primarily from Bangalore and Chennai. In Mumbai, these services are preferred more for the commercial office buildings and highend residential societies. 
MAKING A DECISIVE DIFFERENCE 
Usually, limited integrated service providers venture into management of residential condominiums and ensure that the RWA (Resident Welfare Organisation) nominates members for responsibilities of maintaining and employing security and housekeeping directly, in order to reduce the cost. This is a redundant model. 
    In other words, IPCs specialised in property management, provide a one-stop solution and additionally support in various technical aspects to professionally and cautiously manage safety, security, cleanliness, etc., and maintain a very strict adherence to statutory requirements. This ensures both, tangible and intangible benefits. 
    For residential property management to become feasible for both, the client and the agency, the total saleable area of the project would be around 3,00,000 sq ft for a mid-level housing society. 
THE GENERAL LIST OF SERVICES INCLUDES THE FOLLOWING: 

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• Electro-mechanical (E and M) services 

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• Housekeeping services 

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• Security services 

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• Clubhouse management 

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• Promotion displays/space on hire 

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• Help-desk/concierge services 

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• Hardscape/landscape management 

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• Garbage management 

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• Events and promotions management 

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• Vendor management 

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• Annual maintenance contract 
(AMC) management 
    In the case of cities like Mumbai, there is demand for enhanced services which include additional aspects such as clubhouse management. 
RESIDENTS' RESPONSIBILITIES 
Though professional property management in residential complexes encompasses a multitude of functions and services geared towards providing a comfortable and hassle-free experience for tenants, there is a certain onus of responsibility on the tenants as well. Without such cooperation, the smooth functioning of the project is bound to be compromised sooner or later. 
    To encourage this participation, two sets of guidelines are handed over to tenants. The first is the fit-out guidelines list, which highlights the dos and don'ts that residents need to adhere to, while undertaking fit-outs in their apartments. The basis of these guidelines is to avoid structural damage to the building. These guidelines also include a set of instructions pertaining to how to bring materials into their flats without causing disturbance to other residents. 
    The other set of guidelines is an occupants handbook. This highlights the list of dos and don'ts to be followed during occupancy. This handbook is typically modified, depending on the requirements of the developer and the society. 
THE NUTS AND BOLTS 
The deployment of property management manpower in a housing complex is based on the total saleable area of the project. In general, it consists of five security guards, four house-boys and two personnel from the technical team for every 1 lakh sq ft. The structure of the management team varies with the property and the scope. 
    For managing any housing complex, a team which consists of a property manager, a housekeeping executive, a security officer, a technical manager and helpdesk executives, forms the core management team. This team is based onsite and further manages a team of houseboys, security guards and technical support personnel, all of which are also stationed onsite. 
    There are schedules made for carrying out preventive maintenance and maintenance contracts are issued for key plants and equipment. The onsite team's role is to coordinate with the vendors servicing these contracts and to ensure that all activities are carried out in a timely manner. 
COST TO THE DEVELOPER OR SOCIETY 
The average cost of professional residential property management is Rs 2-3.5 per sq ft for normal projects and between Rs 5-7 per sq ft for premium housing projects. In the case of housing societies, maintenance charges or common area maintenance charges (CAM) are worked out to include all expenses required for operating and maintaining the society. Besides day-to-day expenses, these also include AMCs, insurance and sinking fund. The developer may typically add overhead expenses for infrastructure and resources provided by them to maintain the society. CAM charges are generally kept fixed for a period of one year and any upward or downward revision of the same may be done in subsequent years annually, with the surplus or deficit being credited or debited to align CAM as per expenses. 
SAVINGS AND OTHER BENEFITS 
Significantly, the increase in interest in buying into or tenanting residential buildings that feature professional property management services - as opposed to buildings that do not, is between 30-40 per cent. The cost savings to developers/project owners who opt for professional property management services rather than relying on their own capabilities, depend on the type and age of the building. However, a saving of at least 5-7 per cent is generally achievable in the initial stage. This figure cumulatively increases as the various processes being implemented edge out redundancies and increase efficiency. 
PERSONNEL TRAINING 
A specially-trained workforce is a critical aspect of professional property management and this cannot be compromised on. Though most employed personnel come with prior experience, the landscape of this service vertical itself, is changing constantly. Buildings are being designed or re-designed to comply with emerging technologies, safety parameters and sustainability standards, and upgrades to overall operational efficiency are a constant process. The specifications of buildings and the facilities and functions that need to be maintained tend to differ from project to project. For this reason, property management employees at all levels need to constantly upgrade their knowledge and hands-on skills. 
    In the case of professional property management services by IPCs, such training is provided on a daily basis to the basic level staff, which includes the houseboys and security guards. This training is usually imparted when the shifts change to ensure maximum attendance. The duration varies from 15-30 minutes. Advanced training is imparted to onsite managers and executives. These training sessions are given by regional experts and can last between one to two hours. A happy byproduct of this training regimen is that property management employees at all levels, are enabled to advance their careers within the firm by proving themselves fit for more challenging roles. 
    (The writer is managing directorproperty and asset management, 
    Jones Lang LaSalle India)

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HOUSING FOR ALL: A DISTANT DREAM?

In order to prevent illegal constructions that result in building collapses, the government needs to work with the developers and implement stronger policies to provide affordable housing for all, says      Developing affordable housing in Mumbai is crucial to ensure that the low-income group is not compelled to live in illegal buildings, thereby, curbing tragedies related to collapsing buildings. There are a lot of economic, regulatory and urban issues which need to be looked into for ensuring that there is enough affordable housing inventory to meet the demand. While the unavailability of urban land, rising costs of construction and regulatory issues are the supply-side constraints, lack of access to home finance is a serious demand-side constraint, which impacts the ability of people in the low-income group to buy homes in the organised sector.      Here are a few aspects which the stakeholders of the real estate industry need to consider in order to facilitate affordable housing in Mumbai.  LACK OF LAND PARCELS  There is a huge demand for land due to the high population density. As a result, land prices in India are much higher than can support mass real estate developments. Naushad Panjwani, senior executive director, Knight Frank India, informs, "The government must work on the PSU and PPP model. In the PSU model, the government remains the owner of the land and can take advantage of all future FSI benefits through redevelopment. As the land is already owned by the government and is lying idle, only the cost of construction needs to be funded. Land acquisition norms are inadequate to satiate the need for housing." According to Manju Yagnik, vice-chairperson, Nahar Group, "We require certain policy decisions by the government such as the reservation of land for housing for all projects, making land available at a concessional rate or creating a special housing zone in line with the SEZ concept."  PAUCITY OF INFORMATION  Due to the lack of transparency in getting the correct transactional information, acquiring land takes a lot of time and money. "The land records can be accessed through the department of registration but the process is cumbersome and the transaction prices mentioned in the registration document might not be representative of the actual transaction costs. Further, mapping of land inventory has not been carried out comprehensively nor is it accessible to the buyers. A large segment of the intermediaries that deal with prospective buyers on behalf of the land owners are not certified or professional brokers," a report by Jones Lang LaSalle India (JLL) elaborates. Thus, buyers of land not only lack access to information on options but also have to deal with a largely unorganised sector for their land transactions.  RISING COSTS OF CONSTRUCTION  Although the land prices are exponentially lower in the peripheral locations of the city as compared to the city centre, the construction costs have a significant impact on affordable housing prices. Construction costs form nearly 50-60 per cent of the total selling price for affordable housing due to the rise in prices of materials such as steel, cement, sand and labour. If land in the peripheral area of the city costs about Rs 200 per sq ft, the cost of construction of an affordable housing project with basic amenities costs about Rs 900 per sq ft, which would result in a minimum selling price of Rs 1,400-1,700 per sq ft.      Abhishek Kapoor, CEO, Rustomjee Urbania, opines, "For developers constructing in far-flung suburbs, the government must develop civic infrastructure and ensure better connectivity through roads and railways, as this will lead to an influx of people." It is important to minimise costs for construction of low-income housing whilst balancing the amenities provided, while at the same time ensuring the safety and serviceability of the built structure during its lifecycle.  NO ACCESS TO HOME FINANCE  For home buyers, making a purchase in distant suburbs still remains a challenge. Viraj Momaya, a resident of Dombivli, faced a lot of difficulty in getting a home loan as he was employed in the unorganised sector and was paid in cash. About 65-70 per cent of the workers in urban areas are employed in the unorganised sector. They are paid in cash and lack formal documents of identification, address and income. This segment of the society hence remains under-served by the Housing Finance Companies (HFCs).      According to Monitor Inclusive Markets, a business unit of Deloitte, the loan market of Rs 3-10 lakhs is worth almost Rs 11,00,000 crores. Despite this, a majority of the loans disbursed by the HFCs are to mid-income and high-income groups in the loan bracket above Rs 10 lakhs. Lalit Kumar Jain, chairman, CREDAI, informs, "The interest rates on home loans, especially in the affordable category, cannot and should not be more than seven per cent. Also, the current guidelines by the RBI are antihousing industry as the cost of finance is very high, making housing costlier. Housing should be recognised as an industry and should be given cheaper project finance."  REGULATORY CONSTRAINTS  The process of real estate development is also affected by the efficiency of urban local bodies which undertake city planning, deliver utility services and regulate controls on development through approvals. "India is ranked 177 out of 183 countries with respect to dealing with construction permits, which indicates the challenge developers face in India in the development of real estate," the JLL report states.      To obtain a plan sanction for a project, the developer has to visit nearly 40 departments, right from the central department for environment and the airport authority to the state government for revenue, fire and high-rise approvals and the local bodies for water, sewage and traffic-related approvals. From entering into an agreement for land purchase to the date of commencement of construction, the process takes nearly two to three years, complain developers. "We have been demanding the setup of a single window clearance system, proper coordination between various authorities and reform in approval process; however, this hasn't happened," laments Yagnik.  HIGH TAXATION  If you thought only high land and construction costs made homes expensive, you are wrong. According to calculations made by experts, taxes amount to about 40 per cent of the price of the end-product. Sunil Mantri, MD, Mantri Realty, says that practically, it makes no difference today if you make an affordable housing or a luxury housing project. "The taxes are the costliest these days. The government can give more encouragement to the affordable housing sector by doing away with or reducing the stamp duty, transaction cost, custom excise and providing additional FAR and FSI," Mantri adds.  GREATER FSI AND FAR  Creating housing for all also needs some relaxation in FSI. If we consider the city of Mumbai, developers currently get a FSI of one and in some cases, a little higher, which is certainly not sufficient to implement housing for all classes. Today, top developers in the city are demanding more incentives so that they can turn their attention to affordable housing. In 2010, an MoU was signed between the government of Maharashtra and MCHI. It stated that the developers will create 10 lakh affordable homes through slum redevelopment, PPP model and other schemes. However, this has remained only on paper. So far, only one lakh such houses have been created. "There are bound to be incidences of building collapses, as illegal housing will continue to provide cheap housing. The government must turn to professional developers for which they have to look into various suggestions. It needs to work in tandem with the developers and come up with policies that encourage housing for all," Mantri signs off.  QUICK  BYTES      THE GOVERNMENT CAN GIVE MORE ENCOURAGEMENT TO THE AFFORDABLE HOUSING SECTOR BY DOING AWAY WITH OR REDUCING THE STAMP DUTY, TRANSACTION COST, CUSTOM EXCISE AND PROVIDING ADDITIONAL FAR AND FSI.      FOR DEVELOPERS CONSTRUCTING IN FAR-FLUNG SUBURBS, THE GOVERNMENT MUST DEVELOP CIVIC INFRASTRUCTURE AND ENSURE BETTER CONNECTIVITY.

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New consultant for Dharavi revamp plan

AWAITING BETTER FUTURE Redvpt Area Divided Into 13 Sub-Zones Instead Of 4 Sectors Mumbai: The Dharavi revamp project may finally take off. On Tuesday, the project got a new management consultant.      To avoid a 2009-like fiasco, the state government is considering inviting phase-wise bids to redevelop the 13 sub-zones in which Dharavi has now been divided, instead of the four big sectors.      The plan, which is in the initial stage, is based on an analysis of the current sluggish market, said an official. "In 2009, besides the ego clash between two project authorities, property downturn was another reason for lack of bidders. We do not want poor response this time," the official added. Bids may be invited after November.      Breaking up the project into phases will facilitate the bidding process while the outline and core norms will continue to govern it as a township.      A single developer can bid for all phases or a cluster. "Monitored by a regulator, these smaller phases will be integrated, in terms of amenities and infrastructure. The regulators will ensure essential similarity in these phases," said an official.      Ernst and Young, which won the bid to be the project's management consultant, will look after the revamp of four sectors; the fifth sector is being handled byMhada.      But the government has been unable to finalize the criteria for slum-dwellers who are eligible to get a free home in the rehabilitation scheme. As per rules framed for Dharavi, the government had set January 1, 2000 (against January 1, 1995) as the cut-off date for slum-dwellers to be residing in a surveyed tenement to get free housing. But barring 15%-20% slumdwellers, a survey, by a Dharavi Redevelopment Authority (DRA)-appointed NGO, found the remaining are ineligible.      "We have suggested that the government should consider other proofs like ration card, electricity bill, passport and not only voter identity card to make a slum-dweller eligible for free housing. The government can also charge a fee to transfer the tenancy rights," said Hukumraj Mehta, Congress district president of Dharavi.      The DRA has completed hearing 765 suggestions and objections to the Dharavi Development Plan, spread over 152 hectares, received from 59,000 tenements.      The DRA has recorded 2,015 demands and it will now present a report to the Slum Rehabilitation Authority, which will send it to the urban development department.

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BMC lost Taj hotel files before 26/11

Mumbai: The issue of the disappearance of files from municipal offices has grown murkier with a fresh revelation that among the missing documents are building files, design plans and blueprints of several vital buildings, including the Taj Mahal hotel and an 

oil company's installation. 
    The BMC, by its own admission, cannot trace more than 6,000 files related to as many buildings in Mumbai, a city repeatedly rocked by terrorism. The majority of these records vanished from the building proposals department, which sanctions construction plans and stores the associated documents. 
    A Right to Information query revealed that files of 279 buildings in the island city, 3,474 in the western suburbs and 2,147 in the eastern suburbs are nowhere to be found. 
    RTI activist Sharad Yadav, whose query brought to light the fresh information, said it gives a new complexion to the whole issue: the disclosure shows the major security threat posed by critical information going missing. Issue of missing files could go beyond graft, fears activist 
Mumbai: The nearly 6,000 files and blueprints that have gone missing from the BMC's offices include those of the Taj Mahal hotel at Colaba, a Bharat Petroleum installation at Princess Dock, the traffic police training institute at Byculla, the Royal Opera House at Charni Road, several BEST sub-stations, a government building, as well as buildings used by some leading banks and mobile service providers. 
    "It is widely known that the 10 Pakistani terrorists who entered India for the November 2008 attacks were familiar with their targets because they were provided by their handlers blueprints, including of the Taj Mahal hotel. The revelation that design plans of vital buildings are missing makes one uncomfortable," said RTI activist Sharad Yadav, who elicited the information. "This matter clearly goes beyond corruption and the nexus between builders and municipal officials." 
    According to the documents gained through RTI, the civic body approved plans for "alterations" to the Taj Mahal hotel on December 23, 2005. "The plans went missing in 2006 and the Taj was attacked by terrorists in 2008. This is a cause for serious concern," said Yadav. TOIwas the first to report on June 2 that files of 3,474 buildings from Bandra to Jogeshwari have gone missing from municipal offices. 
    A senior civic official refused to comment on Monday on the disappearance of plans of important buildings, arguing that the subject of missing files was being discussed in the BMC assembly. 
    A spokesperson for the Taj Mahal hotel just said, "All documents that were in our possession are still with us." A Bharat Petroleum spokesperson said the company was not aware of its plant's files being untraceable, "but we do have a lubricant blending plant and an office at Wadi Bunder on Princess Dock". 
    Conservation architect Abha Narain Lambah, who is carrying out the restoration of Royal Opera House, said, "The Mumbai Heritage Conservation Committee's nod came after 17 months. The owners were waiting to get the building proposals department's permission to start the interior restoration. It is very distressing to hear that the files have gone missing. The owners were trying hard to restore the Grade II A building with no government funding."

TERROR FILES: Did Kasab & Co have access to the Taj's blueprint?

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Falling drawing NRI investors to city realty market Developers See Increased Interest

Mumbai: In a sluggish property market, NRIs (non-resident Indians) are suddenly the flavour of the season. The zooming dollar may be bad news for many, but for  builders they are a potential target with the rupee having depreciated 12% against the dollar in the past two months. Real estate market sources said there is an increased level of interest in Mumbai realty from Indians living abroad.      Experts said a city flat costing Rs 5.5 crore ($1 million) in May will now cost around $900,000 for an NRI investor.      The savings are substantial, but are NRIs biting the bait? Said Abhisheck Lodha, managing director of Lodha Group, "The interest levels are much higher. But since the drop has only happened in the last four weeks, the conversion to higher transaction levels will take shape over the next two months.''      According to an estimate, the NRI residential market in Mumbai is around 15%.City realty mkt carries risks: Expert  Mumbai: The rupee depreciation has made Mumbai's expensive properties a little more affordable for the average NRI. "Of the total annual apartment sales of Rs 50,000 crore in Mumbai, about Rs 8,000 crore comes from NRI investors,'' said Abhisheck Lodha of the Lodha Group. Developer Parag Munot of Kalpataru Group said he witnessed "good traction'' in the Mumbai-Pune markets after the dollar touched Rs 60. "The interest is more towards properties in the Rs 1-3 cr range rather than high-end apartments,'' he said.      But Pranay Vakil, chairman of property consultancy firm Praron, said many NRIs are not jumping in yet. "It's the greed factor. They are waiting for the rupee to fall further and till it touches Rs 65. These are not actual users, but investors with surplus money,'' he said.      Pankaj Kapoor of property research firm Liases Foras said NRIs have generally preferred destinations like Bangalore, Pune, Chandigarh and Kerala. "They are not comfortable with Mumbai because of the risk factor and because builders here do not deliver on time,'' he said.      Ashutosh Limaye, research head of Jones Lang LaSalle India, said Dubai's property market recovery is largely backed by huge investments by expatriates, particularly from India. "Non-resident Indians are amongst the top five investor communities in the region. With their affinity towards India, and against the depreciation of the Indian rupee against the US dollar, the NRI community's real estate investment decisions may change in favour of the Indian market if certain parameters are met,'' he said. These include higher economic growth, improved infrastructure, rise in demand for commercial space and social infrastructure.      "Putting these factors into perspective, the recent fall in the Indian rupee could potentially act as a trigger for NRIs in the Middle East to switch focus towards properties back in India,'' he said.

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AFFORDABLE HSG Mhada will not need govt nod for land acquisition

Mumbai: The Mhada will henceforth be allowed advance possession of revenue land without having to obtain approval from the government. The state government plans to create land banks to facilitate affordable housing. 

    "Up to two hectares, the collector can allow advanced possession and up to five hectares, the divisional commissioner has been empowered to hand over land toMhada to create affordable housing," said Swadhin Kshatriya, additional chief secretary, revenue and forests. Mhada will have to pay cost of the land as per the ready reckoner rate. 
    Kshatriya said such possession is allowed for government departments but asMhada is a public undertaking; its request for land had to be processed by the government. "This direct transfer will reduce delay considerably," he said. 
    Mhada, if it wishes, can also purchase land from the market for developing affordable housing, said D Chakraborthy, principal secretary (housing), adding, "Recently, we had bid on behalf of Mhada for a piece of land belonging to Hindustan Antibiotics in Pimpri-Chinchwad. We bought the land." 
    These schemes are, however, not applicable to Mumbai, where land cost is prohibitive.

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All-important Occupation Certificate can tilt the scales Anil Harish

 Buying a flat can fall into two different categories: a) when the building is under construction, and b) when the building is completed. 

    When a building is under construction, the Maharashtra Ownership of Flats Act (MOFA) applies. This requires the builder to enter into an agreement in a specified form and attach a Commencement Certificate (CC), which in Mumbai means the IOD (Intimation of Disapproval) and CC. The title has to be set out in the recital to the agreement and a title certificate from a lawyer has to be attached. 
    Where then does the difficulty lie if MOFA requires all this? Even if the builder prepares a MOFA-compatible agreement and attaches a certificate of title and an IOD/CC, a major issue that can come up later is that the Occupation Certificate (OC) is not given because of a problem that occurs after construction commences. Such a problem could be over extra FSI utilization, non-adherence to approved plans, a delay in construction or even a rule change. 
    The BMC has delayed OCs in the past few years and it seems several buildings in Mumbai do not have such certificates. Therefore, if a person enters an agreement to buy in an under-construction building, and all the documents appear to be in order, the difficulty could still arise later. In such a situation, even a buyer who has taken prec a utions may find his title unclear. 
    The other category involve buildings that are completed. A person may buy a flat either from an actual user or, in a few instances, from a developer. In such cases, the buyer must check the title carefully. What does this involve? This would mean seeing the history of the property, how the land devolved and how the developer came to carry out construction. It would mean checking the construction precautions. 
    Apart from these issues, there are other aspects to be considered. Much of Mumbai is leasehold land. The Mumbai Port Trust, collector, BMC, central government, Mhada, SRA, MMRDA and private interests lease out land. The lease period, terms and conditions should be checked. Several of these leases are expiring and till now many tenants thought they were protected under the Rent Control Act and did not have to vacate. 
    (Anil Harish is an advocate)

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3 more parking lots for city

Mumbai: The Maharashtra government has approved three more public parking lots under the revised parking floor space index (FSI) policy, for over 1,300 vehicles. Thirty-five projects have been approved under the scheme, most of them in the island city. 

    The new lots are at Altamount Road (behind Jaslok Hospital), and in Ghatkopar and Mulund (LBS Marg). 
    "The lots will be a huge relief for people as parking space in the city is scarce," a senior civic official said. 
    Another 13 proposals approved by the Brihanmumbai Municipal Corporation (BMC) are awaiting the state government's nod. 
    The state government had announced a policy under the development control regulation (DCR) 33 (24) under which a developer will get a floor space index of up to four in exchange for the construction of parking lots, to encourage private developers to build them. 
    The 2008 policy had to be revised after experts termed it "builder-driven". 
    The first parking lot under the new scheme began operations in June at Apollo Mills, NM Joshi Marg, and two in Sakinaka and Goregaon will become operational in around three months. 
    Under the current policy, parking floors are restricted to four, and the minimum area of the plot required to avail of the policy has been increased from 700 sqm to 1,000 sqm in the island city and 2,000 sqm in the suburbs. 
    The civic body presently has 92 parking lots under the pay & park scheme for 10,-314 vehicles. 
    PAY & PARK 
The state government has approved three more public parking lots 
    Altamount Road, behind Jaslok Hospital (Lodha Developers) 204 vehicles 
    Mulund, LBS Marg (Runwal Developers) 330 vehicles 
    Ghatkopar, LBS Marg (Wadhwa Developers) 800 vehicles 
    Of 32, one in Lower Parel at Apollo Mills has started functioning, while two in Sakinaka and Goregaon will be operational in three months

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No tax cuts, FSI sops for eco-friendly bldgs Govt To Soon Release Code For Green Structures

Mumbai: After dangling a carrot in front of developers and citizens to promote environment-friendly buildings, the state government seems to have yanked it away for now.      For the last few years, the state had been hinting at providing water and property rebates and providing FSI incentives. But now these sops find no mention in the first-of-its kind "green building code" being readied by the government, said sources.      The new code, which will include mandatory and voluntary reforms, are in the final stages of preparation and will be soon announced, said a senior state official.      Last week, state chief secretary Jayant Kumar Banthia convened a high-level meeting to discuss these reforms.      Sources revealed that the financial implications of offering rebates in property and water taxes could have scuttled these incentives with the state finance department reportedly wary of the option. There was also no consensus and clarity on the FSI incentive plan, an official revealed. Finally, it was decided that the mandatory reforms in the new code must be pushed through without any incentive, the official added.      The government has, however, decided to continue with its initiative of granting priority for environmental clearance procedures to green buildings. Last year, the government introduced a scheme where buildings with green certification were given priority for environmental clearance; it was a tangible benefit as the environment clearances usually take over a-year-and-a-half. This initiative has been gaining popularity with developers.      The state has decided to first enforce the new code for government and semi-government owned and aided buildings; private buildings will be granted a "window period" of three years to comply with the mandatory reforms.      A few of the mandatory reforms include implementing rainwater harvesting for both roof and non-roof areas, planting trees on at least 15% of net plot area, using colour coded bins for waste segregation and reusing 50% of the construction waste. The state has included transplantation of 75% of uprooted trees as a voluntary measure, but made plantation of five saplings of every uprooted tree mandatory.      "Green buildings can reduce the footprint of greenhouse gas emissions by 20%," said Valsa Nair-Singh, secretary, environment department, adding that the government plans to take up promotion of green buildings as a mission. Chief minister Prithviraj Chavan has been pushing the administration to evolve a uniform code for green buildings. SOME OF THE MANDATORY REFORMS  Implement rainwater harvesting  Use minimum 50% of non-roof areas for parking, walkways, podiums with open grid/grass pavement  Plant native species of trees in at least 15% of the net plot area; plant five saplings for every tree uprooted  Place colour coded bins for segregation of waste in the building compound      Place solar light panels in common open areas, passages, gardens and internal roads; instal solar water heating system to take care of at least 75% of hot water requirement      Instal dual flush cisterns (capacity of 3-6 litres) in water closets      Limit maximum flow of water to 10 litres per minute; instal low flow urinals (2litre/flush)      Source at least 10% of construction material locally to reduce emissions due to transportation      Reuse 50% of the construction waste material within or outside the site, or donate it or sell it for recycling or reuse

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BMC rakes in 1.5k cr from FSI premium

Mumbai: The Brihanmumbai Municipal Corporation (BMC) has earned a major windfall, thanks to Mumbai's builders. The BMC earned Rs 1,500 crore in little over a year by charging builders a premium for utilizing compensatory floor space index (FSI). FSI defines how much can be built on a plot. 

    The premium, commonly known as fungible FSI in the construction industry, has become a major money spinner for the corporation. Within a year, it has become the third highest revenue earner after octroi (Rs 7,000 crore) and property tax (Rs 3,200 crore). The civic body will utilize this amount to augment Mumbai's infrastructure. 
    Amended development control rules now allow developers 35% extra area to build residential buildings and 20% additional area for commercial projects in lieu of a hefty premium to be paid to the BMC. These extra areas were earlier misused by unscrupulous builders, who surreptitiously sold them to buyers as part of the apartment. In 2011, the then civic chief Subodh Kumar framed a new policy to ensure builders pay a premium for utilizing these spaces. 
    Figures procured from the BMC show that builders between Bandra and Andheri (H & K wards)—this belt commands the highest residential property prices in the suburbs—collectively paid Rs 387 crore till last month. The Malad-Kandivli-Borivli zone contributed Rs 360 crore since last year. Developers in the eastern suburbs from Sion to Mulund 
paid a total premium of Rs 462 crore while those in the island city paid Rs 140 crore. Builders redeveloping slums paid another Rs 149 crore. 
    Civic officials said the premium collection is phenomenal, but feared this may not always be the case because of the slump in the property market. "Those who paid the premium are the builders whose projects are on-going. The market is now facing a down-turn and many developers may not opt for the extraFSI immediately," an official said. 
    The new policy was also formulated to streamline the non-transparent and highly corrupt building approvals system. It curtails the municipal commissioner's discretionary powers to grant building concessions to developers. Earlier, municipal commissioners liberally cleared projects with unusually large flower beds, voids, lily ponds and car decks. These areas are not included in the building's FSI. These concessions allowed developers to build an additional 50% to 80% above the permitted built-up area. They would sell these free spaces at market rate and then encourage them to illegally amalgamate these areas to make the apartment bigger. 
    But, among the worst to be hit by the new policy were small-time builders operating in the Bandra-Khar-Juhu belt. Over the past decade. these builder had been making a huge killing by manipulating building concessions granted to them by successive municipal commissioners. 
    Although the building approvals system has been streamlined—a civic circular issued last year said approval should come through within 60 days-—builders complain they are still being harassed by ward level civic staff. "Corruption is still prevalent. Earlier, they used to demand a fixed rate per sq ft. Now, they ask for a lump sum amount,'' said a developer.

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