Visit our parent website: www.redevelopmentofhousingsocieties.com



Follow me on

        

        


CONSENT OF 51% FOR REDEVELOPMENT OF MHADA, CESSED, SRA AND SMALL BUILDINGS

 

To curb corruption and sabotage in redevelopment of all buildings, including private ones, the tenant consent clause has been relaxed. The State Government has approved Development Plan (DP) 2014-2034. However, the new DP 2034 has curtailed the rights of tenants residing in old residential buildings of Maharashtra Housing and Area Development Authority (MHADA), Cessed buildings and Slum Rehabilitation Authority (SRA) buildings. Earlier, to undertake redevelopment work of these buildings minimum 70% of tenants was required which has now been reduced to 51%. The reason given behind the move is to speed up the redevelopment projects in Mumbai city under the above scheme.

The Slum Redevelopment Authority (SRA) projects, however, will require consent from 70 per cent residents and they would be subjected to online clearance. If a Developer fails to start work within three months after taking up a project, the SRA will take over the work.

There is some good news for old societies, too. For private housing societies older than 30 years, 15% additional built up area will be allowed for each tenement without charging any premium. This will boost redevelopment of such societies too, as it will mean every tenant will get one additional room.

The new DP has moved the focus on island city again, while the base FSI has been kept the same to 1.33 in Island city, the maximum permissible FSI has been increased to 3, while there has been no change in the FSI in suburbs. Apart from the base FSI of 1.33, the Developer will be allowed to use TDR and also get additional FSI totalling up to 3 by paying a premium.

Earlier the usage of TDR was allowed only in suburbs and now it has been introduced it in the island city also. The reason is the population in the island city has been considerably reduced in the last few years and most development that takes place is redevelopment of old cessed buildings. This new FSI boost will help Developer to increase the scale of redevelopment.

In a further major relief for redevelopment of small buildings having fewer than 11 flat owners, now the requirement of consent of 51% would be enough instead of earlier of 70%. Most of the private smaller buildings registered under the Maharashtra Apartment Ownership Act (MAOA) shall now stand to benefit.

A minimum of 11 members is required to mandatorily register a housing society. Anything less than that means the tenement gets registered under the 1971 MAOA legislation.

The reduction in percentage of obtaining consent is to avoid delay in redevelopment projects. In other words, it has been decided to amend the MAOA so that instead of 70%, the flat-owners can go ahead with 51% consent. This move of government would certainly help people located in south Mumbai, Thane, Navi Mumbai and Pune.

Buildings which have been registered under the MAOA Act, including cessed buildings in south Mumbai, will benefit. With the Real Estate Regulatory Authority (RERA) in place, the government is considering amending both MAOA and the Maharashtra Ownership Flat Act (MOFA).

 

****************************************

ONLINE REGISTRATION OF ALL REGISTERED HOUSING SOCIETIES IS COMPULSORY

The Government of Maharashtra, Co-operation Department has launched new website for creating online records of all types of Co-operative Society. Registrar of Society has informed all the Auditors regarding this. However, it has been noticed that either the Auditors have not informed the Societies of the Societies have neglected the same. Once again, the step by step guide is repeated for this process. The Registrar of Society would take stern action against the defaulting Societies in due course. To avoid such action, please upload your Housing Society information online in the following way.

Step 1: Visit the link:

https://mahasahakar.maharashtra.gov.in/Account/Login/Login.aspx

Step 2: Click NEW REGISTRATION [नवीन नोदणी कऱा]

Step 3: Select Account type as Society. Fill other detail and create an Account. [Just like we create our email account]

Step 4: Fill the Society detail

Note:-

a) Of Society Type selects depending upon your total member of members i.e. For 101 members to 500 members [100 व तायपेक्षा जाशत] OR for 10 members to 100 members [100 व तायपेक्षा कमी

b) In Society code write 6405 for Housing Society in Municipal Cooperation Area/Municipal Council Area & 6404 for Housing society in Gram Panchayat Area

c) For class of the Society, please write class given by the Auditors in the Audit Report like A or B or C

d) For Email ID: - If Society has an email id then write that else write email id of MC Member. This is must since you get the confirmation No from the government on this email id. & also if any wrong information as per government records then you will inform on this Email ID.

Step 5: Upload you Society Registration Certificate scan copy in PDF, JPEG format

If you don't understand how to fill the form then refer the User Manual. Please visit the link:

https://mahasahakar.maharashtra.gov.in/Account/Login/Society_Registration_User_Manual.pdf

For Society Code Please visit the Link:-

https://mahasahakar.maharashtra.gov.in/Account/Login/Society_Code.pdf

**********

DEVELOPERS SHALL BE SCREENED BY MHADA FOR REDEVELOPMENT WORK

One of the things that cause the most stress is finding a good and reliable Developer. The most sought after measure is being taken by the Maharashtra Housing and Area Development Authority (MHADA) who has now decided that it would empanel quality Developers for redevelopment as also it shall monitor redevelopment of cessed buildings. The MHADA authority has decided to launch a foolproof system to ensure that the redevelopment contracts go to competent and reliable Developers only.

MHADA will now register Developers for redevelopment projects based on their track record, financial strength and project experience judged in various categories before assigning redevelopment projects. It is expected of a Developer to be with adequate knowledge, experience and expertise in design, planning, construction and executing the same with passion to deliver the redevelopment projects as committed.

MHADA stresses that the Developer selected, should be of unshakable reputation for quality, efficiency, trust, meticulous planning, top quality amenities, superlative designs, timely completion, guaranteed possessions and handing over of property for rehabilitation of its members.

The decision has been made with several redevelopment projects of MHADA colonies being stalled for years due to Developers deserting them midway or causing inordinate delays in completing the redevelopment projects.

It is a known fact that there are many instances where residents of middle class families are suffering because the Developer they chose was unable to complete projects due to reasons such as capital crunch or lack of expertise. Through this exercise, residents will have a ready list of developers who have been screened for their capability as declared by MHADA's redevelopment cell. Henceforth, whenever a redevelopment proposal is presented by a Developer, MHADA will call a short tender for the work and the lowest bidder will be awarded the contract on a turnkey basis.

MHADA will need a ready list of eligible Developers as it is expected that more and more old housing societies of MHADA to come to us with proposals as the MHADA has 56 layouts in the city of which barely 15 per cent are under redevelopment as of today.

Until now, residents of co-operative housing societies of MHADA were selecting Developers for redevelopment of their buildings independently with a No-Objection Certificate (NOC) from the MHADA authority.

However, now under the revised Development Control Rules (DCR 33/5), the State Government has incentivized the residents to approach the MHADA authority with redevelopment proposals. If redevelopment is undertaken through MHADA, residents will get an additional 15 per cent carpet area.

The MHADA authority will maintain two lists of registered Developers. The first list will be of those eligible Developers for construction contracts with a plot area of less than 20,000 sq. m. These will be the Developers with an experience of at least 10 years in redevelopment work who must have completed contracts amounting to 50,000 sq. m. and with a minimum turnover of Rs. 50 crore in the past five years.

The second list will be of those eligible Developers for construction contracts bigger than 20,000 sq. m. along with a minimum experience of 10 years and having completed redevelopment works of atleast 1 lakhs sq. m. The Developers in this list will have to have sufficient experience of securing approvals from the Environment Department, Coastal Regulation Zone Clearance (CRZ) and High-Rise Committee etc. The Developers shall be empanelled for five years with a provision to grant a two-year extension depending on their performance and expertise in delivering the redevelopment projects as entrusted.

**********

REDEVELOPMENT, A DISGUST OF DEVELOPERS

Impending redevelopment projects shall be exorbitantly expensive now as the Maharashtra Government has approved a proposal to hike Ready Recknor Rates linked premium FSI rates i.e. 33% of TDR FSI to be purchased from the State Government for loading on redevelopment projects in Mumbai Suburban areas.

The redevelopment activities in Mumbai is going through a bad phase since the Developers are hard-caught in brutal financial and administrative crisis due to increase in project costs, mounting up of unsold stock, debt accruals, diversion of fund, increased cost of labour & material, delay in seeking approvals, frequent amendments in DCR, imperfect planning, litigation, violation of terms of redevelopment, unauthorised construction, ever increasing demands from the housing societies in the area of corpus fund and an additional carpet area free of cost and many more reasons which have attributed to almost hold-up or failure of redevelopment projects.

While numerous factors contribute to the hike in real estate prices, there is one significant factor, known as “Ready Reckoner Rates” that has a bigger part in deciding the movement of real estate prices. These rates are the prices of the residential property, land or commercial property for a given area and is published and regulated by the State Government. These rates are regularly revised on a yearly basis depending on the perception about the Government for such price revisions. Therefore, a homeowner or buyer would be required to pay the stamp duty or registration charges, not below such stated Ready Reckoner Rates or the actual price of the property, whichever is higher.

Adding to the misfortune of Developers, recently, the redevelopment industry has received one more hard-hit blow on their face from the State Government due to the recent rise in cost of TDR linked to Ready Recknor Rates known as premium FSI, a move which shall almost paralyse the Developers who have undertaken redevelopment projects and are at the beginning stage of buying process of premium FSI from the State Government.

As we are all aware, the TDR plays an important role in the suburbs of Mumbai as it is most vital component for the Developers redeveloping the properties in suburbs because it doubles the built-up area over and above the usual Floor Space Index (FSI) permitted on the plot. Developers currently have the mandated option of buying 33% of premium TDR from the State Government at a cheaper rate than what the private sellers charge and the rest of 67% from open market to cater the loading need of 1 TDR over and above the 1 FSI of plot potential. However, the new rates are bound to change the equations. The Developers are now going to find it increasingly unaffordable.

In principle, a hike in TDR rates will lead to a corresponding hike in prices for future redevelopment launches. However, owing to the current demand and absorption trends which are showing a slowdown due to erosion of buying sentiments on account of high consumer inflation and flat prices, this upward revision of TDR is expected the Developers to be away from launching new projects in suburban Mumbai.

When a Developer takes up a redevelopment project in the suburbs, he can use 1 FSI i.e. plot FSI and load an extra FSI of 1 by buying TDR from the market. In 2008, the State Government decided to sell 33% of this TDR on their count as premium FSI so that the Developer's mercy on private players reduces. The State Government till date used to sell premium FSI i.e. TDR at 30% of the Property Ready Reckoner Rates of 2008, has now decided to fix the new premium rate at 60% of the Ready Reckoner Rates of 2015 estimating fresh increase in annual flow of around Rs. 7000 crore through this sale.

The Developers have expressed their utter dissent that the new rates will sabotage all redevelopment projects and make them financially unfeasible as the stamp duty to be paid on new purchases of TDR FSI, shall also be now more costly burdening the buyers. The Developers alleged that the Government's move will benefit a group of private players who deal in this premium FSI i.e. TDR FSI. The increased rates will particularly affect redevelopment projects the prime suburbs of western zone where Ready Reckoner rates are very high.

**********

NON-EXECUTION OF INDEMNITY BOND BY MC BEFORE SEPTEMBER 6TH, 2012

Government of Maharashtra
Co-operation, Marketing & Textile Department
Vide Govt. order No: CSL-2003/C No. 496/K-15-5
Hutatma Rajgure Chowk, K. Marg, Mantralaya,
Mumbai - 400032

Dated: 26th Nov'2013

Read:

 

1) Maha-Rule Ho. 2 of 2011, Maha - Govt. Gazette. Part- IV dated 14/01/2011

 

2) Co-operation, Marketing & Textile Dept, Govt. Order No. CSL/2012/C No. 402/1S-5 dated 06/09/2012

 

3) Maha. Rule No. 16 of 2013 Maha. Govt. Gazette/Part- IV dated 13/08/2013.

Management Committees of several co-operative societies in Maharashtra State at disqualification following new orders issued by the state co-operation department

While the department had on Feb-14th abolished a condition that required office bearers in co-operative societies to furnish an indemnity bond taking responsibility of acts of omission and commission that cause loss to the society, the department issued orders on November 16th clarifying that the abolition could not be applied with retrospective effect.

The department has now ruled that in cases where office bearers elected to co-operative societies before Feb 14th and the ones who have not furnished such bonds stand disqualified.

In the case of housing societies, the department issued orders for abolition of the condition on September 6th 2012. The fresh order states that in case of housing societies, all those elected before this date and who have not submitted the bonds stand disqualified. The indemnity bond termed as M-20 bond is an undertaking given by each managing committee member.

In the case of housing societies, the bond had to be furnished by an elected member within 45 days of assuming office. For all other co-operative societies it had to be provided within 15 days. It implied that the managing committee members were liable for criminal action if misappropriation or forgery were reported during its term.

The co-operation department issued the orders thereafter. In its November 26th order, the department said that a clarification was sought from the Government on whether the order could be applied with retrospective effect and if action could be initiated against those who have not submitted M-20 bonds before the abolition. The Government ruled that the order was not with retrospective effect.

Therefore the fresh order state that in case of housing societies all those elected members before 06/09/2012 and who have not submitted the M-20 bond stand disqualified.

By order, Governor of Maharashtra

Sd\-
(Santosh Patil)
Special Executive Officer

Copy to,

1) Co-operation Commissioner & Registrar Co-operative Society Maharashtra State, Pune

2) AH Div. Asst. Registrar & Dist. Dy. Registrar Co-operative Society

3) Asst. / Dy. Secretary, Ward Officer cooperation Department, Mantralaya, Mumbai

**********