Mumbai: Rules For Redevelopment Projects Of Ceased Buildings Have Been Issued
The Maharashtra Housing and Area Development Authority (MHADA) established new requirements for developers with the intention of accelerating the cessed building renovation projects in Mumbai and loosening the restrictions of the Government Resolution (GR) passed in 2019.
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The Maharashtra Housing & Area Development Authority (MHADA) announced that it would fine the developer’s bank guarantee if the redevelopment project is not finished within five years, in accordance with the amended standards for Mumbai’s cessed building redevelopment projects. These instructions are intend to speed up such projects.
What is said in the new guideline?
According to the new regulations, developers must give the Mumbai Building Repairs and Rehabilitation Board (MBRRB) a bank guarantee or a fixed deposit in a nationalized bank equal to 10% of the project cost, calculated based on the current market value, for a five-year term. The Maharashtra Housing and Area Development Authority has an official arm called MBRRB (MHADA).
What happens if a builder doesn’t complete the redevelopment project in that time?
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 finish, if they are unable to finish the project before the bank guarantee expires and fail to renew it.
The Government Resolution (GR) 2019 was withdrawn for what reason?
There are various No-Objection Certificates (NOCs) that are block as a result of the Government Resolution (GR). For building renovation that was pass 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. For the redevelopment projects, the builder must also have built at least 500 homes. Such requirements, in the opinion of the developers, were a hindrance to rebuilding plans. As a result, it became essential to modify the GR & implement more inclusive rules.
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.
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