#CessedBuildings

[propertypistol]

50000 families in Mumbai facing issues of redevelopment stalls in cessed buildings

A recent data shared by MHADA stated that around 2,152 projects involving cessed properties are still awaiting the redevelopment.

Maharashtra Housing and Area Development Authority (MHADA) have mentioned that there are thousands of families stuck in cessed buildings as redevelopment projects. Around 2,152 redevelopment projects, including cessed properties in Mumbai were issued no-objection certificates (NOCs) over the years, among which only 778 of them were completed.

Cluster Development:

There are approx. 20 lakh occupants in the cessed buildings in Mumbai. The state cabinet in August 2019 had approved a proposal to amend the MHADA Act. It was mentioned then that the people residing in the cessed building are of more than 30 years and were earlier redeveloped by MHADA or authorities under the MHADA, will get 300 square feet flat in Mumbai if these buildings again undergo redevelopment. Moreover, they decided to promote cluster development of cessed buildings and adjacent non-cessed buildings. Necessary amendments will be made in the Development Control and Promotion Regulations 2034 by the Urban Development Department.

Inflated list of tenants:

In 2017, a report prepared by a Janhit Manch NGO stated that several builders were redeveloping old and dilapidated cessed buildings allegedly misused FSI. They showed many bogus tenants in order to build higher buildings consuming unlimited floor spaces.  

The report was then submitted to the state government, which confirmed that builders inflate the list of tenants. So that these builders could rehabilitate free of cost in new buildings and also because the builders get more FSI with the increasing number of tenants.  

Also, the MHADA NGO mentioned that these newly created bogus tenants are allotted premises only on paper to comply with the MHADA NOC. However, these tenants never get physical possession of any premises and these premises are actually sold to outsiders at market rate.  

At certain places like Malabar Hill and Nepean Sea Road, a number of buildings have been constructed and are now occupied with the super-rich. Among those many apartments for sale in the market are achieved by creating non-existence and fictitious occupants.

Failure of housing schemes:

The housing scheme in Mumbai proved to be a failure because it is estimated that it will take around 300 years to rehabilitate for all tenants. The reason behind this is that MHADA canceled the NOCs in 46 cases, consisting of 111 buildings and 2,064 tenants.

One of the biggest builders redeveloping cessed properties in south Mumbai who claims to control over 50 cessed properties, mentioned that the reasons these projects have stalled are heavy premiums, taxes, GST, stringent RERA rules and funds drying up from financial institutions.

Conclusion:

There are many buildings which have gone for redevelopment, but are stuck. Some builders have ceased providing rents to the tenants. The decision will accelerate the procedure as MHADA will have to complete the project in three years.