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5800 redevelopment projects are stalled in Mumbai.❗❗❗ What steps govt is taking for such projects❓

🌀1.25 lakhs families are out of their home waiting for their new homes since several years. Developers have stopped the construction of these projects, they have also stopped paying monthly rent as agreed. Developers are saying they don’t have money to invest and project is not viable for them.🌀



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💢The developers have committed to the societies as per old policies and construction was carried out per that commitment. In due course, there were several changes in policies in last decade by the Govt & MCGM and hence projects costs have increased drastically. Currently the projects are not feasible for the developers. Adding to this woe, sales have also slowed down and no finance is available for the developer in market. But the truth is that, the Developers have invested in such stalled projects.💢


🌐These Mumbaikars once staying in their ownership flat are homeless today and their Developers are not interested to complete the project. They have run away keeping the projects incomplete..!!🌐


🚫These Society people had no option but to approach to the court only. Looking at the non-performance, Court have terminated developer but the developers are asking for the reimbursement of the costs incurred by them.🚫


♨If total costs are added such as costs incurred by old developer and the pending cost to complete the project, then such total cost is not possible to recover from the sales. Hence the society cannot go ahead.♨


💥For Eg.💥


Project Cost

20 crores - spent by old developer

30 crores - to be spent to complete the project.

————————————————-

50 crores - total cost of the project

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Project Sales

10 crores - sales done by old developer

30 crores - expected revenue from balance sale

————————————————————

40 crores - total sales of the project

—————————————————

♨10 crores - total loss in the project.♨


What will be the fate of Mumbaikars in such projects..❓❓

Will these projects of Mumbaikars never be completed..❓❓

Will these homeless Mumbaikars never get their home back..❓❓

How to complete these projects..❓❓

What is Govt doing for these Mumbaikars..❓❓

Is there any solution..❓❓


Identify the projects in 2 types:

  • Building demolished and work started or not.

  • DA is registered with developer prior to December 2016, Building is dangerous and declared as C1 category.


We suggest solution to such projects but

  • Govt has to forget about its revenue,

  • Developer has to forget his some of the investments and

  • Society has to take timely decision.


✔✔Suggestions are as follows:✔✔

  • Society themselves to complete the project by self redevelopment with finance from Mumbai District Central Co-op Bank known as Mumbai Bank.

  • A special committee to be formed by Mumbai Bank for such projects to analyse the project costs and feasibility of the project.

  • As suggested by this committee, these societies’ projects to be given additional FSI. If additional FSI not possible, give heavy discounts upto 80-90% in premiums (such as FSI by MCGM/Mhada, Development Charges, Development Cess, Staircase premiums, etc)

  • No Open space deficiency premium to be charged.

  • No TDR to be purchased. MCGM to allow FSI in lieu of TDR.

  • To promote sales in such projects, charge only 1% GST on sales of flats. Also subsidise Stamp Duty on sale agreements.

  • 100% Subsidy on LUC tax.

  • One window clearance to be done with all special concessions by MCGM in 7 days.

  • If project still not feasible, then such society members to leave their monthly rent.

  • Professionals to provide their services on special discounted rate as decided by the Mumbai Bank.

  • Fix the heading of the costs spent by the developer and reimburse those costs only. No reimbursement of stamp duty, interest costs, out of pocket expenses, etc.

  • If the developer doesnot agree the decision, he has to complete the project by showing funds. No provision for developer to approach the higher court for creating litigation.

  • The amount of reimbursement has to be decided in stipulated period. The the old developer amount to be reimbursed only from sales proceedings and after loan is repaid by the society to the bank.

  • Society to have an option to carry on with old Architects & professionals of the developer or to appoint new professionals. The resolution for the same to be passed in SGM.

  • Same old contractor of Developer or new contractor to be appointed by the society in SGM.

  • Society will not be responsible to clear the outstanding of professionals and Contractors due with old developer in the project.

  • Benefit by MCGM to be granted only to those societies who complete their formalities in SGM for appointment of Professionals & Contractors and submit their proposal to Bank in 3 months.

  • Govt to grant subsidy of interest rate to such projects. Govt also to encourage buyers to buy in such projects with subsidised home loan at 7%.

These homeless🏠 Mumbaikars are having registered ownership document and still are paying rent from their own pocket for their basic need of shelter. In this union budget, Finance Minister in aiming to house for all by 2022, has given many incentives for affordable housing but what about these Mumbaikars who have their own home...? They have ownership home but still can not afford to stay in the city.


📣The Govt should take immediate action and resolve the above issue at the earliest. If this issue is not resolved, then instead of providing home for all by 2022 will be successfully replaced by providing home to all Ghosts💀 by 2022, as these Mumbaikars will die homeless and they will take possession in these uncompleted projects..

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