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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

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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.

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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

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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.

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TDR POLICY NEEDS TO BE REFORMED

The most sought after reformation in the present rules pertaining to the loading of TDR in redevelopment of properties in suburban Mumbai is an ultimate desire of the Developers. TDR is an important component for Developers redeveloping properties in suburban Mumbai because it doubles the built-up area over and above the usual Floor Space Index (FSI) permitted on the plot. But the Developers wanting to buy it from the market are now finding it increasingly unaffordable. FSI refers to the buildable area on a plot of land.

An FSI of 1 means the area of construction should be equal to the area of the plot. For example, a plot of 20,000 sq. ft. can only have a built-up area of 20,000 sq. ft and no more. FSI for Mumbai Suburbs is 1, but another 1 FSI can be loaded by buying TDR i.e. 33% of the plot area from BMC at concessional rate and the balance of 67% from the open market.

To further loosen the grip of private dealers/suppliers of TDR, it is recommended that the Government should increase the BMC limit of buying the TDR from 33% to 67%. The BMC's TDR rate which is fixed on the Ready Reckoner Rate of the target area which is currently available for between Rs. 1,500/- to Rs. 2,500/- a sq. ft and it is nearly 80% to over 100% cheaper than the market rate at which the Developers are buying the remaining TDR of 67% which is likely to touch Rs. 5,000/- in near future.

Let us first understand the concept of Transfer of Development Rights (TDR). Transfer of Development Rights i.e. TDR means making available/generating certain amount of additional built up area in lieu of the area relinquished or surrendered by the owner of the land so that he can use extra built up area either himself or transfer it for an agreed sum of money to another person in need of the extra built up area to be constructed for example in redevelopment projects to prompt the Developer’s saleable area.

Similarly, the TDR is also generated when land reserved for the public use like playground etc. is acquired by the BMC. Instead of paying cash compensation to the land owner, the BMC issues a TDR certificate which mentions the Floor Space Index (FSI) potential of the land acquired. This certificate is transferable and can be sold in the open market by the land owner.

The present rule is that the TDR should be utilised to the north direction of the property against which it was issued. The TDR concept since its inception was exclusively applicable only to the suburbs of Mumbai. Even TDR generated in the city could be used only in the suburbs. As a result, citizens were deprived of civic amenities due to lack of availability of reserved plots as the present TDR policy created imbalanced development in the suburbs.

As a result of this restriction over the past few years, thousands of square metres of TDR generated in downmarket areas have been used in posh localities in the western suburbs. This has resulted in heavy redevelopment activity in the western suburbs bringing in its trail a series of problems like traffic congestion, increase in level of pollution etc.

With a view to rectifying this imbalance and need of the hour, it is most recommended to reform the present TDR policy to rationalise the use of land. Removal of ban on use of TDR in the Island City and change in DC Rules has to be seriously considered by the Government. The revised TDR policy would help transform Mumbai into a better global centre.

It is significant to note that the ban on the use of TDR in the Island City was imposed because of the fear that excessive use of TDR in the Island City might result in high density of population and leave excessive load on the existing civic infrastructure of south and central Mumbai.

It is recommended that against the unit of 1.0 of plot potential, atleast 1.3 times the TDR should be awarded to the owners of reserved plots so as to make it an attractive return and hand over reserved plots to the BMC voluntarily. Once the TDR policy is revised, the large quantum of reserved plots shall be unlocked in the city. These plots can be used for various civic amenities such as gardens and play grounds. Owners will be able to get higher value for their plots against the sale of TDR since the compensation will be based on the actual market value.

In its existing policy until now, TDR could be utilized for redeveloping a plot situated to the north of the property from where it is generated. The Urban Development (UD) Department has now planned to remove this provision. Instead, it has put forth a plan to allow loading of TDR anywhere in the suburbs. Moreover, to ensure that Developers do not make unreasonable gains, it has planned for indexing of the TDR.

Under the new policy, the Ready Reckoner Rates areas where the TDR is generated and loaded will be taken into consideration. For example, if a TDR is generated from plots situated in rich areas like Bandra (West) of Suburb where the prevailing market rate is very high per sq. meters and assuming that this TDR is planned to be utilized on a plot meant for redevelopment in Malad (West) where the market rate is lower per sq. meters, the TDR so generated from the Bandra (West) will be twofold. Similarly, if the same TDR was generated from the plot in Malad (West) and was to be utilized on a plot meant for redevelopment in Bandra (West), the TDR will be halved.   

Under the present policy, the TDR value remains unchanged in such cases. It is also not possible to use the TDR generated in Malad (West) on a plot in Bandra (West), as Bandra (West) is situated southwards. The proposal also involves indexing the TDR generated from heritage sites. This is based on recommendations made by MHCC (Mumbai Heritage Conservation Committee) for extending the incentives to private owners in order to conserve heritage structures. The proposal awaits approval of the Government and it is expected to get an approval soon.

The another proposal is worth considering that in case of large-sized reserved plot of 2000 sq. meters and above, 50% area of the plot should be handed over to the BMC by the Owner/Developer of the plot free of cost and on remaining 50% the Owner/Developer should be allowed to develop it. He should be permitted to utilise the full potential of the plot. On the BMC acquired plot, the owner should get TDR. If the size of the plot is less than 2000 sq. meters, then 60% plot can be retained by the owner and 40% should be hand over to BMC at free of cost.

The DC Rules should be adequately amended to bring uniformity in the use of FSI. The nonsensical and irrational use of FSI has created the haphazard development in Mumbai city. For non-cessed building redevelopment, the FSI is restricted up to 1.33 only whereas the use of FSI is to the extent of 3.00 for redevelopment of cessed buildings. Besides, under DC Rule 33(9) which deals with cluster redevelopment, the Developer can avail of an FSI of only 4.00. In fact, the cluster redevelopment under DC Rule 33(9) should be more attractive in comparison with the DC Rule 33(7) for the redevelopment of cessed buildings.

The Developers are distressed due to sudden leap in TDR Rates from Rs 2,500/, a sq. ft to over Rs 4,000/- in the past two months. This has jeopardised all the proposed redevelopment projects in the suburbs. The unparalleled augment in price of TDR is believed to be attributed to few players of the realty industry who control around Rs 2,000 Crores business a yearly only in TDR deals, has forced many Developers to renegotiate the terms of redevelopment deals with housing societies or put them on the grasp.

Industry sources says that total TDR stock currently available is barely 10 lakhs sq. ft against the annual demand of about 70 lakhs sq. ft. Most of the stock is held by few Developers ruling the redevelopment market. These affluent Developers are some of the biggest slum Redevelopers in the city who generate TDR by building tenements for slum dwellers or project-affected persons free of cost. As compensation, they receive additional construction rights in the form of TDR. They can either use this TDR themselves to build anywhere north of the slum plot or sell it to another Developer at a cost.

It is feared that the rate of TDR may jump to Rs 5,000 a sq. ft in the next couple of month as no TDR is being generated from slum projects. Since the last three months, every week has seen an acknowledged increase in TDR prices. This has made redevelopment of housing societies unaffordable. If the TDR rates continue to shoot up and if the Government fails to intervene, many redevelopment projects will come to a grinding halt leaving the housing societies in dry and the prices of saleable areas shall be skyrocketing.

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