UNHEALTHY AND UNLAWFUL PRACTICE BY CERTAIN DEVELOPERS IN REDEVELOPMENT OF HOUSING SOCIETIES IN MUMBAI
(Aftermaths of Development Agreements executed with Societies)
Now a day, the Redevelopment proposals are grossly mooted by the Developers in old and dilapidated Cooperative Housing Societies in Mumbai Central and Suburbs.
As per the Plot area and the loadable TDR/FSI in permissible ratio i.e. 1:1, 1:1.3, 1:2 or 1:2.5 or as applicable, the Developers begin discussions with the Office Bearers/Architect/members of the Societies for the Redevelopment of Society’s property.
The Developers offer the members a bigger and posh dream houses with additional carpet area/rooms over the existing ones, displacement compensation for alternate accommodation, corpus fund and eye-catching amenities etc. The Developers construct either additional flats or commercial joint on the remaining area available at their disposal on the same plot and sale it in open market to earn the surplus. The Development Agreements and the Power of Attorneys are finally executed between the Societies and the Developers to complete the projects.
Initially, to obtain the IOD/CC from MCGM, the Developers submit the plans to MCGM as per the agreed terms in the Development Agreements executed with the Housing Society.
It has been often noticed that thereafter, during the process of redevelopment, the terms of Development Agreements as agreed upon, the unhealthy attempts with ulterior motives are made by the Developers to twist and grossly violate the rules of MRTP and DCR by unlawful planning and constructing additional/unauthorized areas that are beyond their entitlement (i.e. beyond the plot FSI and the TDR/FSI loaded) for their hidden financial gains. The buyers of such unlawful flats/properties land themselves in deals that lead to litigation at a later date.
At this stage, the Developers submit the amended plans for additional structures to MCGM which are not in conformity with the Development Agreements executed and additional/unauthorized constructions are carried out without informing beforehand or seeking formal approval from the Society's architect/Society as per the rules and bye-laws or execution and registration of further necessary Agreements to this effect.
The ill-observance of MRTP/MCGM/DCR rules and guidelines are overlooked by the sympathetic officials of the MCGM and the plans so submitted, are sanctioned without verifying the eligibility or its conformity with the Development Agreements. The Projects are completed and the Occupancy Certificates are issued without the proper inspection neither carried out by the MCGM officials nor taking pains to verify whether the actual measurement of the constructed areas tally with the final plans submitted.
It is further noticed that upon the completion of the projects, these additional/unauthorized constructions are silently regularized at the last moment by executing the Supplemental Agreements with the Office Bearers of the Societies with green handshakes/offering them handsome rewards.
Further, it is learnt that in many Societies, the Managing Committees, who execute the documents with the Developers, do not possess any legal holding as they have never filed/nor aware of filing the Indemnity Bond in Form M-20 on a Stamp required under Section 73(1AB) and Rule 58A of the Maharashtra Cooperative Societies Act 1960. The members who fail to execute such Bonds within the specific period are deemed to have vacated his office as a member of the committee and no legal effects can be given to the documents executed by them with the Developers.
The gullible members of the Societies, unaware of the laws and rules, are taken for a ride by the Developers and the satisfied Office Bearers together with their interested associates once the projects are completed and since the members aim to get themselves re-housed in the redeveloped premises and on the other hand, the hidden financial benefits of such unauthorized/additional areas go to the Developers.
It has also been alleged that the one Builder, during the process of recent redevelopment of the entire property of New Chandra CHS Ltd, one of the large sized housing societies having FSI of about 5500 Sq. mtrs, situate at Veera Desai Road, Andheri (West), had corrupted and twisted the terms of Development Agreement as earlier agreed upon, without obtaining prior approvals from all concerned and unhealthy attempts with ulterior motives were made for construction of additional/unauthorized areas of thousands of sq.ft with gross violation of the Rules and Regulations of MRTP/MCGM and DCR.
The blatant abuse of Rules and Guidelines of MRTP/MCGM/DCR were conveniently overlooked by the “Sympathetic Officials” of the MCGM and the plans with anomalies so submitted, were sanctioned without verifying the eligibility or its conformity with the Development Agreement executed with the Society.
The Project of six buildings and one enormous commercial mall was completed and the Occupancy Certificates were issued without proper inspection carried out by the MCGM officials. Not a single official bothered to verify whether the actual measurement of the constructed areas tallied with the final plans submitted.
It was surprisingly noticed that upon the completion of the said project, the additional/unauthorized constructions so carried out, were silently regularized at the last moment i.e. on the day of handing over the possession of the redeveloped buildings by executing and registering the Supplemental Agreement with the Office Bearers of the Society with believed to be green handshakes/awarding them handsome rewards.
There are numerous news clips in various news papers with regard to Mumbai High Court’s reprimanding and lambasting severely the MCGM for violation of Development Control Act & Rules and are instructed to immediately issue the demolition orders to pull down such unauthorized/additional constructions and take stringent action against the erring officials for their lapses. Reference is necessary for the latest news appeared in Times City of Times of India Dated 12th Sept.2008-Illegal Constructions: HC blasts MCGM and MHADA for illegal and unauthorized constructions on Andheri-Versova- Jogeshwari belt have come under scanner of the Mumbai High Court.
Under the Development Control Rules, it has been stated that in case of unauthorized development, the Commissioner shall - (a) take suitable action which may include demolition of unauthorized works as provided in section 53 of the MRTP Act, 1966 and the relevant provisions of the Mumbai Municipal Corporation Act, 1888 and shall take suitable action against the licensed technical person or the architect concerned.
Upholding the law for the welfare of the community is more valuable for society than extra heap of cement and concrete. Plenty of judgments are overlooked by greedy Developers to earn extra money.
The members of the Cooperative Housing Societies in Mumbai are required to be vigilant while handing over their Societies for redevelopment to such Developers who, by rewarding the Office Bearers and their associates, carry out the unauthorized/additional constructions for their hidden financial gains which they are not entitled to. When unauthorized constructions beyond the laws are the statutory norms of such Developers rather than the exception to the rules, the strict laws of the land have always to be upheld by taking stern actions under the laws.
Further, it is learnt that in many Societies, the Managing Committees, who execute the documents with the Developers, do not possess any legal holding as they have never filed/nor aware of filing the Indemnity Bond in Form M-20 on a Stamp required under Section 73(1AB) and Rule 58A of the Maharashtra Cooperative Societies Act 1960. The members who fail to execute such Bonds within the specific period are deemed to have vacated his office as a member of the committee and no legal effects can be given to the documents executed by them with the Developers.
The gullible members of the Societies, unaware of the laws and rules, are taken for a ride by the Developers and the satisfied Office Bearers together with their interested associates once the projects are completed and since the members aim to get themselves re-housed in the redeveloped premises and on the other hand, the hidden financial benefits of such unauthorized/additional areas go to the Developers.
It has also been alleged that the one Builder, during the process of recent redevelopment of the entire property of New Chandra CHS Ltd, one of the large sized housing societies having FSI of about 5500 Sq. mtrs, situate at Veera Desai Road, Andheri (West), had corrupted and twisted the terms of Development Agreement as earlier agreed upon, without obtaining prior approvals from all concerned and unhealthy attempts with ulterior motives were made for construction of additional/unauthorized areas of thousands of sq.ft with gross violation of the Rules and Regulations of MRTP/MCGM and DCR.
The blatant abuse of Rules and Guidelines of MRTP/MCGM/DCR were conveniently overlooked by the “Sympathetic Officials” of the MCGM and the plans with anomalies so submitted, were sanctioned without verifying the eligibility or its conformity with the Development Agreement executed with the Society.
The Project of six buildings and one enormous commercial mall was completed and the Occupancy Certificates were issued without proper inspection carried out by the MCGM officials. Not a single official bothered to verify whether the actual measurement of the constructed areas tallied with the final plans submitted.
It was surprisingly noticed that upon the completion of the said project, the additional/unauthorized constructions so carried out, were silently regularized at the last moment i.e. on the day of handing over the possession of the redeveloped buildings by executing and registering the Supplemental Agreement with the Office Bearers of the Society with believed to be green handshakes/awarding them handsome rewards.
There are numerous news clips in various news papers with regard to Mumbai High Court’s reprimanding and lambasting severely the MCGM for violation of Development Control Act & Rules and are instructed to immediately issue the demolition orders to pull down such unauthorized/additional constructions and take stringent action against the erring officials for their lapses. Reference is necessary for the latest news appeared in Times City of Times of India Dated 12th Sept.2008-Illegal Constructions: HC blasts MCGM and MHADA for illegal and unauthorized constructions on Andheri-Versova- Jogeshwari belt have come under scanner of the Mumbai High Court.
Under the Development Control Rules, it has been stated that in case of unauthorized development, the Commissioner shall - (a) take suitable action which may include demolition of unauthorized works as provided in section 53 of the MRTP Act, 1966 and the relevant provisions of the Mumbai Municipal Corporation Act, 1888 and shall take suitable action against the licensed technical person or the architect concerned.
Upholding the law for the welfare of the community is more valuable for society than extra heap of cement and concrete. Plenty of judgments are overlooked by greedy Developers to earn extra money.
The members of the Cooperative Housing Societies in Mumbai are required to be vigilant while handing over their Societies for redevelopment to such Developers who, by rewarding the Office Bearers and their associates, carry out the unauthorized/additional constructions for their hidden financial gains which they are not entitled to. When unauthorized constructions beyond the laws are the statutory norms of such Developers rather than the exception to the rules, the strict laws of the land have always to be upheld by taking stern actions under the laws.
***************************
