25-acre Tata Steel land fetches 1.1Kcr bid

Mumbai: One of the biggest parcels of land in Mumbai, the 25-acre Tata Steel land in Borivli (E) is believed to have fetched the highest bid of Rs 1,155 crore following a day-long e-auction on Monday. It is rumoured that Oberoi Realty may be the highest bidder. 

    But a Tata Housing source said, “We are still in the race. The bidder hasn’t been finalized yet. We understand the process is still going on.” 
    Tata Steel declined to comment on the status of the transaction. 
    Others in the race are Lodha Group, Oberoi Realty, Kalpataru, Peninsula Land and Indiabulls. Lodha stretched its final offer till Rs 1,150 crore before giving up, said sources. The reserve price was fixed at Rs 750 crore when the e-auction began at 11pm. Developers kept on increasing their bids by Rs 5 crore till it reached the final Rs 1,155 crore around 7pm. The auction was coordinated by global property consultant Knight Frank; its India chairman Shishir Baijal declined to comment. 
    The land close to the Western Express Highway has a development potential of 28 lakh sq ft or 40 lakh sq ft in case the developer submits a proposal for parkingFSI. Property rates in Borivli are currently in the range of Rs 13,000 a sq ft.“The land will be developed for residential purposes,” said a source. Tata Steel has put the onus of procuring regulatory permissions and clearances on the winning bidder, and that too, within three months of the deal being sealed. 
    Of the total 1 lakh sq-m sprawl, an estimated 29,130 sq m is “Sanad” land, acquired under the provisions of the Land Acquisition Act, 1894. Tata Steel wants the winning bidder to obtain permission for sale of this portion from the collector’s office and an NOC from the Labour Authority within three months. The winning bidder will have to pay around Rs 150 crore to the collector as unearned income for this portion. “In case, the highest bidder is unable to obtain the approvals, the MoU shall automatically stand cancelled and participation deposit and earnest money deposit (Rs 20 crore) shall be forfeited,” said the information memorandum prepared by Knight Frank. “The balance consideration paid at the time of signing MoU shall be returned to the highest bidder along with interest etc.” 
    The Tata Steel document said only developers who have completed 2 million sq ft in the last three years and have a net worth of Rs 200 crore can participate. The successful developer has to pay 10% of the bid amount within two days of signing the letter of intent. The balance 90% has to be paid within a month of signing of the MOU.

The land has a development potential of 28 lakh sq ft or 40 lakh sq ft in case the builder submits a proposal for parking FSI 

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BMC to issue certificates before razing shaky bldgs

Mumbai: In a bid to persuade the residents of private societies to vacate their dilapidated buildings, ward offices will issue them a certificate of occupancy before razing such structures.      “Issuing a certificate to private societies instils a sense of security into the residents. Before razing a building, BMC officials note down the number of persons present there and their names. This, along with a picture of the building, will appear on a certificate duly signed by the assistant commissioner of the ward,” said a civic official. The system is already being followed in P(north) ward in Malad and M(east) ward in Chembur. This ensures that once a new building comes up after the demolition of the old structure, the rightful owners get their due and there is no scope of fraud.      The BMC move comes in the wake of occupants in private societies showing reluctance to vacate flats even after getting demolition notices. “Occupants of buildings on pagadi (rent) system get a rent receipt but no carpet area is mentioned there. We measure the carpet area in their presence. This is a way to ensure that they were the actual occupants of the buildings,” said D K Jain, assistant commissioner, P(north) ward. —Linah Baliga

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HC slams state move to protect 66K illegal bldgs

Mumbai: The Maharashtra government’s propensity to issue ordinances to save illegal structures has drawn flak from the Bombay high court. 

    “The laws regarding town planning cannot be defeated by tolerating such large number of unauthorized structures,” said a division bench of Justice Abhay Oka and Justice M S Sonak recently. “Such toleration of structures is nothing but encouraging the wrongdoers who treat the law with contempt. The state cannot encourage illegalities. The state cannot discourage those who abide by law by obtaining permissions before making construction,” the judges said. 
    The court’s observations came after it was informed of a proposal by a committee headed by a state minister seeking to bring in a special law to protect over 66,000 illegally constructed structures in Pimpri Chinchwad. The HC was hearing a plea by the owner of an illegally constructed hotel in the town. The state has earlier issued ordinances to save illegal structures in Ulhasnagar and was also considering such special laws to protect illegal structures in Kalyan-Dombivli and Thane. 
    “No debate is required to observe that such large-scale unauthorized constructions have completely disturbed the concept of planned development of the city for which municipal corporation has been constituted,” said the judges. “Such large number of unauthorized structures will place unbearable burden on the basic amenities. The citizens who are residing in the lawfully constructed buildings and structures will be thus deprived of their legitimate right to effectively enjoy the beneficial amenities as 66,000 illegal constructions will place unbearable burden on the public amenities provided in the city for the benefit of law abiding citizens.” 
    Disapproving the proposal, the court asked the state government that before taking a decision, it should keep in mind orders of the high court which had said that “such a policy encourages the violators of law and gives confidence to the violators of law that illegal structures would be tolerated even in future”. 
    Meanwhile, the HC gave its go-ahead for the Pimpri Chinchwad Municipal Corporation to act against an estimated 66,000 illegal structures in the township. The court also directed the police commissioner to provide protection to the municipal chief and the demolition squad. This came after the court was informed that the earlier civic chief had reported about threats to his life over the issue of action against illegal structures. The court also ordered action, including notices to be issued to owners of illegal structures, criminal cases to be filed and demolitions be undertaken by the corporation. 
BMC eviction bid fails on 4th day 
    The BMC was unsuccessful in vacating adilapidated building at Kherwadi in Bandra (E) for the fourth consecutive day on Tuesday. Shivaji Nagar tenement building number 3 was declared “dangerous beyond repair level”. As soon as a BMC team visited the site to disconnect water and power supplies, 500 residents gathered at Kherwadi junction to oppose the eviction drive. Around 17 tenements are likely to be affected by the eviction. “We have postponed the disconnection of water and electric supply by two days,” said Ajitkumar Ambi, assistant municipal commissioner, H (East) ward.— Linah Baliga

Shivaji Nagar bldg 3 at Kherwadi has been declared dangerous

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From refugee to property czar, G L's untold story Raheja Patriarch, Who Had Set Sail From Karachi For Mumbai In A Cargo Ship During Partition, Never Forgot His Humble Roots

Construction baron Gopal Lachmmandas Raheja (80), who died on Tuesday, was often described as Bheeshma Pitamah, the grand patriarch of Mumbai’s real estate industry. 

    However, thepast few years of his life were tumultuous following an acrimonious fight with his son Sandeep over the vast business empire he founded. The dispute began in 2012 when Sandeep objected to the father’s alleged proximity to a Brahma Kumari woman half his age. The senior Raheja, though, had refuted the allegation, stating that Sandeep was refusing to hand over a share of the business to his two sisters. The row, which spilled out into the media, ended up hurting both father and son as they had 
always jealously guarded their privacy. 
    “Where are you? Come and meet me,” he called last month, only to cancel the meeting ten minutes later because he said he was not well. 
    At one point in time, G L, as he was commonly referred to in the cut-throat property market, was one of the largest land owners in Mumbai; that’s before the family separation two decades ago. 
    His earlier life was full of hardship, though; a rags to riches story. The Rahejas fled Karachi soon after partition, virtually penniless.
    One day, his father, Lachmmandas, came home frantically and asked the family to immediately vacate the Karachi home. Within an hour, they had packed up and were ready to sail for Mumbai. The Sindhi clan travelled in a cargo ship and took shelter in a factory at Bombay Central. Twenty members of the Raheja family later shifted to a two-room rented apartment with a common toilet in Andheri. 
    But the hard-nosed boy, then barely 15, would not allow himself to wallow in pity. He started his career in the then Bombay Housing Board as a civil engineer, earning a salary of Rs 270 a month in 1957. But soon, along with his father and brother, Gopal established Raheja Brothers. 
    “There was a time when I worked from 7am till 11pm. I often neglected my wife Sheila,” the unassuming billionaire would tell this correspondent. In the mid-1990s, she passed away after a prolonged illness, leaving him disconsolate. 
    During her treatment in the US, G L would often take walks around malls while the wife shopped. It was here that he got the idea to start a similar concept back home. Thus started Shoppers Stop, a brand which he created—later he had to cede the chain of stores to his brother Chandru. 
    The Rahejas were also one of the first developers in the Bandra-Khar-Santa Cruz belt. Gopal, along with his late father and uncle, constructed their first building at 3rd Road in Khar and sold flats at the rate of Rs 20 a sq ft in the late 1950s. Today, his group claims to have completed 2,000 projects all over the country. 
    Besides starting the Shoppers Stop chain in 1992, G L also co-founded the S L Raheja Hospital. He was the founder trustee of L S Raheja School of Architecture & Arts, L S Raheja College of Arts & Commerce and L S Raheja Technical Institute. 
    The construction czar never forgot his humble roots, though. His networking and friendship with top politicians, including the late Bal Thackeray and Sushilkumar Shinde, was well-known in industry circles. But, as he told this correspondent once, “Even now, I sometimes sit with junior civic officers in their cabins and drink chaiwith them.”

G L’s funeral procession will start from Raheja House, Bandra, on Wednesday morning

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Court admits PIL on cluster redevelopment

Mumbai: A Thane resident has moved the Bombay high court alleging that two civic bodies had allowed cluster redevelopment in their areas without doing an impact assessment study of the scheme. The PIL filed by Dattatray Daund will come up for hearing on March 19. 

    “My submission is that local civic bodies (BMC and TMC) should have done the impact assessment study before giving its consent to the cluster development policy,” Daund said. In February, CM Prithviraj Chavan had made an announcement in the state assembly about the government giving its consent for the cluster development. According to the urban development department, cluster redevelopment will require a minimum area of one hectare currently occupied by legal or illegal constructions. The developer will be entitled to an FSI of 4. The petitioner said he was not against cluster redevelopment. “But I want to know whether municipal corporations have taken into consideration the effect the policy would have on existing infrastructure of these cities,” Daund added.

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Builder to refund society members 13L for lapses

Mumbai:The state consumer commission ordered a builder to refund Rs 13 lakh collected from the residents of a Vile Parle building towards society formation, maintenance and other charges after it failed to fulfil the statutory obligations. The complaint was filed by 12 members of Heritage View Cooperative Housing Society Ltd. 

    The developer, Kiran and Harsukhlal Hemani, will have to refund Rs 7.8 lakh collected as outgoing charges, Rs 4.71 lakh will have to be paid on account of maintenance charges against the unsold flats. A further Rs 63,120 will have to be refunded towards society formation charges. The builder will have to pay Rs 50,000 as compensation. Additionally, the builder will also have to obtain the occupation certificate and execute conveyance deed by transferring the title, rights and interest in the land and building in favour of the society within four months. 
    The Maharashtra Consumer Disputes Redressal Commission passed the order ex parte, after the builder failed to submit a written version of its argument before it.
    It is alleged that the builder failed to provide office premises for the society, cabin for the security staff, proper water connection and had not taken the steps for forming the co-operative housing society, in addition to failure to execute conveyance deed and handover the entire open space in the compound of the society etc. 
    Having failed at all the attempts to get redressal for their grievances, they obtained information under the Right to Information Act from the SRA to find out whether the builders have complied with all the legal requirements to issue the occupancy certificate. However, the SRA replied stating that occupancy certificate was not issued as the builders had not filed certain important documents. 
    The commission said the builders’ failure to get occupancy certificate and execute conveyance deed was a deliberate act and amounts to perpetual negligence to discharge statutory obligation.

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Hawking zones, razing of illegal shops a must

G-North ward’s main headache is encroached footpaths and roads, which leave little space for both pedestrians and vehicles.  Proposals to ease the congestion are yet to be even considered for implementation.     The new street vendor policy states hawkers will be rehabilitated in a systematic manner in areas that will be demarcated as hawking and non-hawking zones. The criterion for marking hawking zones is that they should not affect pedestrian movement in the area. If implemented, the area outside Dadar station on the west side will be free of hawkers, leaving an uninterrupted path for pedestrians.      Civic officials say the town vending committee, which has been formed in the G-north ward, has identified spots to rehabilitate these hawkers and open areas only for pedestrians.      “We also have a plan to construct a multi-level hawker plaza in Dadar where some of these hawkers will be accommodated,” said civic officials.      There are also plans to demolish a few shops that have encroached on the footpaths near the foot-overbridge from the railway station, so that the bottleneck created there will be addressed.      However, two multi-level markets are ready but unoccupied in the ward. In Nana Patil Mandai, famously known as the Plaza market, a hawkers’ plaza was created at a cost of Rs 30 crore to relocate roadside hawkers. Till date, it continues to wear a deserted look. Barring the ground and first floors, from where the Dadar Janta cloth traders operate, the upper floors of this five-storey building are lying vacant. Nearly 800 shops remain unoccupied on these floors. Similarly, in Mahim, there is another market opposite the Lokmanya Vidya Mandir at Mapalavadi where a five-storey building is lying vacant as fish vendors from the area have consistently refused to shift into that building.      “If there are problems with using these markets then the issues should be addressed. What’s the point of spending money and not using them?” said an activist from the area.      As a solution to the shanties on the footpath, the BMC suggested reducing the width of the footpaths when they are repaired or re-laid so that they are not wide enough for slums to be built on. But several footpaths on which slums and sheds have come up have not been taken up for repairs, hence the encroachments continue to exist.      A pilot project of reducing the width of the Mahim Dargah footpath was undertaken and has shown good results, but it hasn’t been extended to other areas especially in front of Mahim station near the RBI staff quarters up to the Mahim church.      A proposal to connect the defunct Mahim subway using a road over bridge with escalators so that it can be used to help disperse pedestrian traffic from the busy LJ Road too has been pending.      “If the subway can be made usable a lot of pedestrian traffic today that crosses the busy Mahim junction will benefit, the authorities should look at the feasibility of the proposal and implement it,” said a traffic expert.      Civic officials said the parking issue in the area will be sorted out only after the BMC gets over 1,000 parking slots in the Kohinoor Square Building at Sena Bhavan. These slots are expected to resolve the parking problems in this area to a great extent, as most buildings here were constructed without any provision for parking inside the compound.      Similarly, other off-street parking slots will be available to the BMC in a few years in Chhabildas Lane, near Ideal Book Depot, officials said, adding these measures will ease congestion in the area to a great extent.

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Builders flout rules, sell flats in projects sans clearances

Mumbai: Without any construction permissions in place and sometimes even when land titles are not clear, builders in the city have been enticing clients to book flats early at discounted rates although it is illegal under the law. In fact, by luring investors to book flats by paying just 10% to 20% before the first brick is laid, developers manage to sell 200 to 300 flats even before the project is publicly announced in some cases. 

    Property experts say this is now a common practice in the real estate industry. In a big Thane project, the builder 
sold 500 apartments although the title of the land is still not clear and no sanctions have been procured. 
    Laws are stringent about what are called pre-sales and soft-launches of flats. The Maharashtra Ownership of Flats Act says no flat can be sold unless building plans are submitted to the civic body and are approved. “It is illegal to sell apartments this way,” advocate Vinod Sampat said. 
    According to HDFC chairman Deepak Parekh, it is the consumer who suffers in case the project is delayed or violations are later discovered by the authorities. 
CASTLES IN THE AIR? 
Builders in the city sell flats at discounted rates before all clearances are in place Experts say pre-sales and soft-launches are illegal Builders indulge in presales for immediate funds Experts warn the buyer will be the worst hit if a project fails to get clearance Developers pre-sell flats as clearances take time: Expert 
Mumbai: Experts say it is illegal on the part of developers to sell flats before their projects have got proper clearances. “Without the municipal intimation of disapproval (IOD) and commencement certificate, a builder cannot advertise a project,” HDFC chairman Deepak Parekh said. “But if they invite close associates, friends and investors to book flats privately, it should not be a problem.” 
    Solicitor Parimal K Shroff said buyers should avoid builders who flash brochures showing buildings and detailed floor plans when the land title itself is under dispute. It could be reserved for a public amenity, or the building plans may not even have been submitted to the BMC. 
    Then there are developers who have clear land titles and IOD, but are awaiting the commencement certificate. They may have submitted their building proposals and may be waiting for BMC approvals. “It would not be illegal if a developer offers an option to a client to book a flat and accept a deposit at this stage despite an element of uncertainty,” Shroff said. “If the permissions don’t come through, the developer returns the money with interest.” Shroff, however, warned that any sale agreement without a sanctioned building plan or commencement certificate would be deemed illegal. 
    Recently, TOI exposed how rogue builders demand more money or coerce purchasers into cancelling bookings so that they can re-launch projects at a higher cost when property prices increase. The article led to a flood of calls from people who claimed they were similarly duped by builders. 
    In case of “pre-sales”, buyers make a down payment, which could be just 20% or almost half the cost of the flat, in return for a discounted price offered by the developer. 
    “Many builders indulge in pre-sale the moment they buy the land and mortgage it to the bank,” said a property expert. The BMC now charges builders who want to avail of extra construction rights, called fungible FSI, and transfer of development rights a premium. “They require funds to pay for this premium, hence they start selling even before the project begins. The funds are raised as approvals can take over a year,” he said. 
    Usually, buyers are helpless in the face of violations by builders. Under the Maharashtra Ownership of Flats Act, builders usually enter into sale agreements based on initial permission required for any construction (even before the commencement certificate) from the civic authorities, and though the law mandates that further amendments may be made with approval from the buyers, the provision is routinely flouted.

    Without intimation 
    of disapproval and commencement certificate, a builder cannot advertise a project. But if they invite friends and investors to book flats privately, it should not be a problem 
Deepak Parekh | HDFC CHAIRMAN

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CRZ body calls Mahim a bay, okays SRA scheme Decision Can Lead To Coastal Constructions

In what could set a precedent for construction along bays that are like open sea fronts, the Maharashtra Coastal Zone Management Authority (MCZMA) has given the go-ahead for a slum redevelopment scheme close to the Mahim Bay. The MCZMA took the decision after the Bombay high court directed it to form an opinion on the matter.      When the proposal for the redevelopment of the M N Koli slum first came up before the MCZMA, it asked the Union environment ministry (MoEF) to define what constituted a bay. The issue was critical, since geomorphologically (geomorphology is the scientific study of landforms and the processes that shape them), large parts of the coast of Maharashtra, Goa and north Karnataka are bays. The 2011 notification reduced the effective protection for these parts to merely 100 metres. As for the country’s eastern coastline, all of it is along a bay—the Bay of Bengal.      A bay by definition is a protected cove, but in Maharashtra and large parts of the country, it is often an open shore. Officials said the 1991 CRZ notification stipulated at least 500 metres from the shoreline as CRZ area for both bays and seafronts. The MCZMA’s coastal zone management plan was approved by the MoEF in 2000 going by this specification.      The 2011 notification changed it all. So, the MCZMA sought a clarification in the matter as most of the state’s coastal area is either along bays or creeks.      The slum redevelopment scheme was submitted in 1984-85 and approved in 1990 as per the Development Control Regulations of 1967. Construction started almost immediately. The project was stalled when the 1991 CRZ notification came into force. First the land got tagged as CRZ-I and then CRZ-II.      As per the 2000 coastal zone plan, Mahim Bay is in front of the slum plot; on the side is a creek. The distance of the plot from the bay and the creek is over 200 metres.      After the 2011 CRZ notification, the plot’s developer, Deepak Rao of Accanoor Associates, moved court, claiming the water body at Mahim to be a bay. He asked for a 100-metre CRZ line to be demarcated as per the notification. He also argued that since the plot was beyond the 100-metre line, it was out of CRZ purview.      Accanoor’s director (operations) Mohammed Raza said the firm would approach the Slum Rehabilitation Authority for further approvals. “We plan to build two buildings, one rehab and the other for sale.”  SETTING A PRECEDENT  BUILDING RULES FOR BAY AND OPEN SHORE      The Centre’s 2011 CRZ notification, which defines the scope of coastal conservation, stipulates different treatments for bays and seafronts (open shores)  SEAFRONT | Construction prohibited up to 500 metres from high tide line  BAY | No construction up to 100 metres landward or till a distance equalling the bay’s width, whichever less  LACK OF CLARITY      Importantly, the notification does not define less-protected bays      Last year, the Maharashtra Coastal Zone Management Authority (MCZMA) sought the definition of bay from the Union environment ministry. has not yet replied The MCZMA had sought the clarification as Mahim Bay is like an open shore and not a protected cove, as a bay is defined The issue is critical, since large parts of the coast in Maharashtra, Goa and north Karnataka are bays. The notification reduces effective protection in these areas to a mere 100 metres. Of course, the country’s eastern coast sits by a bay—the Bay of Bengal SRA PROJECT  REDEVELOPMENT OF M N KOLI SLUM  PLOT  43,740 sq ft  SLUM-DWELLERS TO BE REHABILITATED  348  FREE SALE COMPONENT  Residential building. Details not ready      The developer, Deepak Rao, proprietor of Accanoor Associates, sought the HC’s intervention to approve the project as the distance would be 200 metres from Mahim Bay      In November, the court directed the MCZMA to decide on the matter within 12weeks      This week, the MCZMA informed the high court that the waterbody at Mahim is a bay. It based this on a clarification from the National Hydrographic Office, Dehradun, that Mahim Bay is depicted as a bay on official navigational charts

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Singhania highrise at Breach Candy exceeds FSI 10 times: BMC chief

Mumbai: A new BMC order may spell further trouble for the 37-storeyed Breach Candy tower built on a one-acre plot by the Singhanias of Raymond.      A report prepared by municipal commissioner Sitaram Kunte observed that excessive concessions granted to the developer caused a “mammoth’’ construction of 27,400 sq m against a floor space index ( of 2,570 sq m. “The total construction area is more than ten times the FSI computation,’’ it said. FSI is the ratio which determines how much can be built on a plot.      “This is a case that causes serious concerns from the urban planning point of view,’’ said Kunte, in his 35-page order accessed by TOIon Wednesday. “The order implies that the tower’s height could reduce by at least six to seven floors,’’ said a senior civic official. It said large areas which were not counted in the FSI “shall be counted in FSI’’.      It is learned that the excessive concessions were sanctioned in 2008 by then municipal commissioner Jairaj Phatak, who was later suspended by the state for his alleged role in the Adarsh society scandal.      The BMC had halted work on the building in 2012 following an adverse note by Kunte’s predecessor, Subodh Kumar, who found the concessions “excessive and misusable’’.  Raymond’s Response      An official spokesperson for Raymond said: “We have received the municipal commissioner’s order. We are studying it in consultation with our legal advisors.’’Raymond needs to get state nod for oversized duplexes: Kunte  Mumbai: Former civic chief Subodh Kumar had made adverse remarks against the Singhanias’ upcoming tower at Breach Candy. “These are nothing but extra covered spaces, which are not permissible, are in total disregard of the spirit of development control rules…. Please make a report to government to fix responsibility,’’ Kumar had instructed officers a few days before he retired in May 2012.      The building known as JK House comprises basement plus stilts, shops on the firstt and second floors, parking levels and two refuge floors between the third and 14th floors and a museum between the 15th and 18th floors. The 19th floor is a service area while the floors from 20 to 36 are for residences, fire refuge, amenities and AC plant room. The total height of the tower is 142.56 m.      The skyscraper was allowed an area of 2,563 sq m just for fire refuge floors and refuge areas. Kunte ordered that the fire refuge areas and fire escape passages can be free of FSI only up to 4% of the built up area it serves. Anything in excess of this “shall be counted in FSI in accordance with the National Building Code’’.      “There have been instances in Mumbai where project proponents have merged refuge areas, fire escape passages, parking floors, elevation features and used them as habitable areas. Designated officers appointed by BMC are taking action against such misuse. The only safeguard that BMC has in this case is obtaining registered undertaking against misuse. Such areas cannot be effectively subjected to policing on perpetual basis by our staff,’’ said Kunte.      Kunte also found that apartments including duplexes on the higher floors were each over 70 sq m in area. “File papers do not show any approval from the state government for tenement areas in excess of 70 sq m. Hence, Raymond needs to obtain clearance from state government,’’ his order said. “The area of the shops and duplex floors having height in excess of 4.2 m shall be counted 1.5 times in FSI,’’ it added.      “Raymond Ltd is directed to submit modified plans in accordance with this order and applicable regulations. The plans shall be accompanied by clarification and clearance from government,’’ said Kunte’s order. The 37-storeyed JK House

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Eastern Freeway to become India's longest in April Last 3Km Stretch, Tunnel To Be Inaugurated

Mumbai: The entire stretch of Eastern Freeway from Orange Gate in south Mumbai till Ghatkopar will be thrown open to public in the third week of April, making it the longest such dedicated corridor in the country. The 16.59-km route can be covered in 25 minutes, cutting down on travel time by almost 50 minutes. 

    Usually, it takes one-and-a-half to two hours to cover the stretch by road, depending on traffic. 
    “The last 3 km portion of the Freeway from Chembur to Ghatkopar-Mankhurd Link Road is on the verge of completion. Once that stretch is inaugurated, it will especially benefit motorists from Ghatkopar and those travelling to Thane and beyond,” said a senior official of MMRDA, the implementing agency of the project. The first stretch of the Freeway—9.29km of elevated corridor from Orange Gate to Anik and 4.3km groundlevel stretch till Shivaji Chowk in Chembur—was opened in June 2013. The official further said, “We have undertaken several measures such as improving the condition at the Panjrapole junction in Chembur so that the waiting time at the signal can be reduced. We plan to shorten the radius of the rotary island at the signal to provide more road space.” The entire project cost Rs 1,463 crore. 
    Besides the 3-km stretch, the second tunnel, meant for vehicles bound for south Mumbai, will also be opened. “The work on the second tunnel is complete. But the road surface there is being improved and so, the entire width is not available to traffic for the time being,” the official added. Work on a pair of ramps near Bhakti Park, which will help motorists take the freeway to Chembur, is also at an advanced stage of completion. Two other pairs of ramps—one at the Govandi ROB junction and the other at Ghatkopar-Mankhurd Link Road—will also be inaugurated at the same time. A fourth one, which will help vehicles to and from Wadala, Dadar, Mahim and Matunga access the Freeway will be ready in May. 
    Diversion of vehicles to the Freeway has already eased snarl on Dr Ambedkar Marg, Rafi Ahmed Kidwai Marg, MbPT road and the Eastern Express Highway. The opening of the last phase will help further reduce congestion on Dr Ambedkar road. Around 50% fuel consumption and that in the levels of harmful emissions and noise are also likely to go down. 
    Explaining the delay of the last stretch, officials said that MMRDA had to rehabilitate 495 families. Rehabilitating them, land acquisition and hurdles faced by the presence of transformers and pumping stations in the way pushed back the deadline, an official said. 
Kherwadi flyover 
    he south-bound arm of the Khe-Trwadi flyover is likely to be opened in May. The 585-m-long flyover, costing Rs 28 crore, is expected to reduce snarls on the Western Express Highway. MMRDA’s metropolitan commissioner UPS Madan said, “We hope to finish the work by May. After that work on the north-bound fank will begin.” 
    A traffic official said, “Though the corridor is meant for south-bound traffic, we may allow north-bound vehicles on it in the evening. But a final call will be taken later.” TNN

Motorists can cover 16.59 km from south Mumbai till Ghatkopar in 25 minutes

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Notices to hsg & urban devpt principal secys

Mumbai: The HC on Tuesday issued showcause notices for contempt of court against the principal secretaries of the state housing and urban development departments.      A division bench of Justice V M Kanade and Justice Anil Menon heard a contempt plea filed by Sarla Agency, owner-developer of a property at Hindu Colony, Dadar. The HC in August, 2013, had directed the state to decide on an application for utilizing additional 0.5 FSI. But since there was no compliance of order, the developer filed a contempt petition. On February 12, the HC was assured on behalf of the government that a decision will be taken before February 28. “Till today, no reply has been filed,” said developer’s advocate Sanjay Kadam. The government’s advocate said a decision will be taken before March 31. But the judges refused his submission. The matter wll be heard on April 2.

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CONC E RN OVE R POLICY AM B IGU ITY I N AFFORDAB LE HOU S I NG NOTI FICATION

The government’s notification on affordable housing has created a lot of confusion among the developers who are seeking clarification on a number of important points, writes RAVI SINHA     The rationale behind the Maharashtra government’s notification on affordable housing, is the question that everyone, within the built environment of real estate, is asking today. There is a general feeling among the developers that the Maharashtra government’s notification for the builders, developing a housing project on a 4,000 sq m (acre) plot, to reserve 20 per cent of the area for affordable housing, is not in sync with the market’s reality. The developers call it an unnecessary burden on them without any policy incentive. Something that may lead to more negative sentiments in the market instead of addressing the issue of supply of EWS/LIC housing. Also, they demand clarity from this notification. The notification by the Maharashtra government says that the developers must keep 20 per cent area for affordable housing. The developer will receive 20 per cent extra floor space index (FSI) as an incentive for the 20 per cent reservation for public housing. In principle, the move is aimed at benefitting lowincome groups (LIG) and economically weaker sections (EWS), who will be allotted the 323-538 sq ft tenements through a lottery by the MHADA. The scheme will create more housing stock at a time when MHADA does not have much land. The notification says that when the developer intimates MHADA about granting of an occupation certificate (OC) by the planning or civic body to his newly-built apartments, MHADA has to decide within six months, if it will purchase the 20 per cent tenements or allot them to those selected through a lottery system. In case of a plot, if MHADA declines to purchase it within six months, the developer can sell it in the open market, for which additionalFSI will not be permissible. In case of tenements, the developer or land owner has to sell plots of land to MHADA or allottees, selected by MHADA at construction rates, decided by the inspector-general of registration, Pune, under the annual statement of rates in the year of the scheme's approval. The developer has to first get an OC for affordable housing, only then will he get an OC for the other 80 per cent housing, which he can sell in the open market at market rates. The notification, however, leaves the developers with more questions than the government has the answers to. For instance, the clarification sought by the industry bodies questions whether the plot potential to work 20 per cent EWS/ LIG tenements should be considered after deduction of 15 per cent RG (recreation ground) area required as per Reg No of 23 of DCR 1991. In the proposals for redevelopment of existing buildings, where or when the developer or society have come forward for redevelopment of the existing building with utilisation of transfer of development rights (TDR) or additional floor space index, the potential of the plot which is already developed to its full potential, shall be considered after deduction of the existing built up area or otherwise. Admitting confusion for the developers with this notification, Manju Yagnik, vice-chairperson, Nahar Group, questions that in case of proposals wherein, the developer has already proposed the tenements having a size of 50 sq mtrs in area to the tune of a minimum 20 per cent EWS/LIG, whether the provision would still be applicable over and above the already provided 20 per cent. “In case of the redevelopment on MHADA land, as per the Reg 33 (5) for the middle-income group, wherein, the tenement size up to 80 sq mtrs that is required for rehabilitation of existing tenants and the 60 per cent tenements of the MHADA layout are within EWS/LIG/MIG category, whether the said provision of 20 per cent would still be applicable,” asks Yagnik. Hariprakash Pandey, vice-president, finance and investor relations, HDIL, agrees that there is a need for policy incentives for developers. Some points in the notification are of concern, as they could result in an increase in the construction costs for developers, as well as delay the approval process. In cases where the developer constructs and hands over LIG units to MHADA, he will be compensated as per the ready reckoner rates of Rs 1,600-1,750 per sq ft, which is lower than the actual construction cost of Rs 2,500-3,000 per sq ft, resulting in a loss for the developer. “The occupancy certificate for the free-sale portion will not be granted till the OC for the LIG unit is issued which could delay the construction of the project. Developers will now also need more time to amend the project designs as per the notification, which could further delay the projects by 4-6 months. As per the notification, MHADA has the option to buy the LIG flats within six months after the construction. Therefore, the developer has to fund the expenses from his own pocket, unlike the free-sale flats, which are built from the pre-booking amount collected at the time of booking the flats. The government should revise the notification, ensuring that MHADA buys the flats well in advance or during various stages of construction itself,” feels Pandey. There are others who question why as per the notification, the built-up area of the EWS/LIG tenements, constructed under the said scheme, shall not be counted towards the FSI. They also question whether the area of such tenements would be accounted for the overall cap for utilisation of TDR and the TDR component which needs to be reduced to that extent or whether 20 per cent EWS/LIG built up area, being free of FSI, shall be over and above the cap of 2FSI, as stipulated in Reg No 32, table 14, amounting to an FSI of 2.2. It is also not clear whether the said notification would be applicable in the CRZ and NDZ areas. Moreover, there is ambiguity whether the 20 per cent area to be handed over to MHADA is inclusive of the areas which are exempted from the computation inFSI by charging a premium. Developers say they are also clueless that if it is not so, then whether the premium required to be paid for the open space deficiency will be exempted or not. In case of the composite building ,wherein, 20 per cent tenements are to be handed over to MHADA and the sale area is proposed in a single building, whether the payment for all other charges should be recovered proportionately/exempted, if the MHADA’s component is more than 50 per cent and treated as a composite building. In conclusion, Maharashtra government’s notification has created confusion among the developers and property analysts. There is a general feeling that the said notification is silent on the issues which can arise after the grant of occupation. The policies for guidelines should be formulated for maintenance of common amenities, utilities and payment of the property tax. A section of analysts feel that only if the issues are properly addressed by the government, this notification will be a good incentive for providing adequate affordable housing to the masses. Failing this, it may lead to policy ambiguity and hence, defeat the purpose of affordable housing.  QUICK B Y T E  •DEVELOPERS WILL NOW ALSO NEED MORE TIME TO AMEND THE PROJECT DESIGNS AS PER THE NOTIFICATION, WHICH COULD FURTHER DELAY THE PROJECTS BY 4-6 MONTHS. (The writer is CEO, Track2Realty)

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Slum protection cut-off date extension to lead to TDR mess

 The extra Transfer of Development Rights (TDR) generated from the state government’s extension on Friday of the cut-off date for protection of slums, from 1995 to 2000, is likely to throw the entire TDR scheme into disarray and also put an enormous strain on the city’s infrastructure, said BMC officials and housing experts. 

    SourcesinthebureaucracysaidMuncipalCommissioner S J Kunte and senior officers of the housing department had adequately briefed the CM Prithviraj Chavan on the problems that the cut-off date extension for slums was likely to throw up. 
    WhentheTDRschemewaschallengedinthecourts (both Bombay High Court and Supreme Court) some years ago, the state government, then headed by Vilasrao Deshmukh had given a commitment to the courts that it would not extend the cut-off date beyond January 1, 1995, recalled BMC officials. “The government can of course always say they have a right to amend decisions or make new legislation,” observed a top civic official. 
    TDR is an important factor that determines how much FSI will be available for redevelopment and construction of new buildings in the city. If theFSI of a plot cannotbeusedupwithinitsboundaries,itcanbetransferred to another plot elsewhere. 
    “The cut off date for protection of slums was earlier extendedfrom1980to1985,thento1995.Thegovernment had given an undertaking in court that it was the last time when the deadline would be extended. I don’t know how the courts will take it,” housing expert Chandrashekhar Prabhu said. 
    Soon after the amendment was introduced in the Maharashtra assembly by minister of state for housing SachinAhir,MNSgroupleaderBalaNandgaonkarsaid: “It is okay that the government is extending the deadline, but what about the earlier deadline set by the court?”Thechiefministerrepliedthatthegovernment hadsoughtandtakentheopinionoftheAttorneyGeneral.’’ The bill was passed in the assembly and sent to the council. 
    According to the housing department’s calculations, the January 1, 1995 cut-off date generates one lakh crore square metres of TDR in Mumbai. Now, the TDRwillincreaseandhencetheexistinginfrastructure will be enormously strained, said civic officials.

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