Norms For Reconstruction Of Rebuilt Cessed Buildings Have Been Issued In Mumbai
The Maharashtra urban development department has drafted a new clause after lowering the requirements of the Government Resolution (GR) enacted in 2019. This provision of the Development authority & Promotion Regulations, 2034 establishes redevelopment standards for 454 properties under the authority of MHADA and BMC.
Are you searching for new projects in Byculla?
Update: A new clause 33(24) has been drafted in the Development Control and Promotion Regulations, 2034 to address the redevelopment of 454 properties owned by the Maharashtra Housing & Area Development Authority (MHADA) & the Brihanmumbai Municipal Corporation (BMC). The clause concentrates on the original cess structures that were later develop as part of the PM’s Grant Project and are currently in need of urgent restoration. These structures are currently outdated, unsafe, and in poor condition.
Additionally, the Maharashtra Housing or Area Development Authority (MHADA) announced that it would fine the developer’s bank guarantee if the redevelopment project is not finished within five years, according to the most recent regulations for the renovation of abandoned buildings in Mumbai. These guidelines are meant to make such undertakings go more quickly.
Private redevelopment of abandoned houses faces opposition from the FSI
According to reports, the cessed structures can be found all throughout South Mumbai, from Colaba to Sion & Mahim. There are about 388 MHADA properties and 65 BMC properties that have been abandoned and are in a bad shape. Since there was no policy, the debate about their redevelopment heated up in the State legislature in 2016.
The government has created a new plan called 33(24) to let private developers rebuild the shuttered buildings. But the floor space index (FSI) provided for these projects prevents them from being economically feasible. By far, the majority of these abandoned structures have been rebuilt with the standard 1.33 FSI.
What are the new regulations for the redevelopment of abandoned buildings?
The Mumbai Building Repairs & Redevelopment Board (MBRRB) now requires developers to provide a bank guarantee or a fixed deposit in a nationalized bank equal to 10% of the project cost, determined based on the project’s current market value, for a period of five years. An official division of the Maharashtra Housing & Area Development Authority is known as MBRRB. (MHADA).
In addition, after being rebuilt, the 454 buildings covered by MHADA & BMC no longer qualify as cessed properties. However, because of their limited financial resources, the occupants of these buildings are unable to restore the buildings themselves. The government came up with the 33(24) clauses because there was no policy in place to rehabilitate such properties. The FSI’s incentive programme for the 33(24) redevelopments, however, is insufficient to draw in private capital. However, a written appeal asking the State government to boost the FSI incentive has been submitted since otherwise. The developers worry that the programme will just exist on paper.
What will happen if a builder is unable to complete the redevelopment project in five years?
The builder is subject to a penalty of 12 percent on the bank guarantee for the first three months of every year, then 18 percent until the project is finishes. If they are unable to finish the project before the bank guarantee expires and fail to renew it.
What is the cause for the withdrawal of the Government Resolution (GR) 2019?
Several No Objection Certificates (NOCs) became stalled as a result of the Government Resolution (GR) for building renovation that was passed in September 2019. A builder required to have made between Rs 10-15 crore in revenue during the previous three years. According to GR 2019. The builder must also have completed at least 500 homes in order to be eligible for the redevelopment projects. According to the developers, these regulations hampered plans for reconstruction. It was therefore necessary to change the GR and put in place more inclusive regulations. The State thinks the regulations were essential because there was no means to hold developers accountable for the failure of abandoned projects in the past.
You’re looking for Projects in Bandra we have the Best Properties In Mumbai Like Ready to Move:https://navimumbaihouses.com/properties/search/bandra/
If you want daily property update details please follow us on Facebook Page / YouTube Channel / Twitter
