Sandeep Ashar : Mumbai : DNA : Monday, Sep 13, 2010 :
A staggering 6.59 lakh sq ft of built-up area in the island city, worth over Rs1,000 crore according to conservative estimates, has been retained by private builders, in violation of the rules governing redevelopment of dilapidated (cessed) properties. Meant for public housing, the surplus area from redevelopment should have been in the possession of the Maharashtra Housing and Area Development Authority (Mhada).
This revelation through an RTI query comes at a time when the state housing department prepares guidelines for granting perks to building firms for undertaking redevelopment of old and dilapidated structures in the suburbs. Mazgaon resident Kamlakar Shenoy had filed the RTI query.
Mhada is entitled to the surplus area from redevelopment which has to be surrendered in the form of built-up tenements. The authority, in turn, allots these to families residing in old buildings, where reconstruction cannot be undertaken in situ.
In response to Shenoy’s query, which sought details on projects where the surplus area had been surrendered, the Mumbai repairs and reconstruction board (MRRB) of Mhada replied that this had been done in less than 30% — 70 out of 241 — of redevelopment projects sanctioned in the last two decades.
The RTI reply also revealed details regarding 134 other projects where this kind of area was yet to be surrendered.
These included projects where approvals for redevelopment had been granted in the early 90s.The built-up area, illegally retained in this case alone, was 5.94 lakh sq ft. The reply, furnished last week, chose not to provide the details on the status of area to be surrendered in 28 other projects taken up more recently.
Reliable Mhada sources, however, revealed that the area transfer had not been carried out in almost all of these too. These added up to another 65,200 sq ft. Thus, a staggering 6.59 lakh sq ft of built-up area in the island city, where per sq ft rates hover around the Rs20,000 mark, are being illegally retained by developers. Real estate experts pegged the net worth of this built-up land at Rs1,000 crore conservatively. Besides, more than 2000 needy families would have been provided shelter, had these been acquired.
A senior official said that the housing board will now find it difficult to recover the surplus area in many of these projects, as builders had sold off these portions outright.
Housing expert Chandrasekhar Prabhu said that most developers tend to cheat Mhada and retain the surplus area. He added that in many cases sections of the officialdom work in connivance with the developers to defeat provisions made in law to prevent such misuse. Prabhu added that provisions disallow issuance of occupation certificates till the surplus area is surrendered.
“Though Mhada is empowered to forcibly take possession of the surplus area and initiate criminal proceedings against the guilty developers, authorities seldom put it to use,” he said. Prabhu also cast aspersions on Mhada’s reply on the number of redevelopment projects, where surplus area had to be surrendered, which he felt ought to be in the 1000s.
Shenoy said the reply clearly proved that public interests were being put on the line for developer’s gains. PP Maheshi, resident executive engineer, MRRB, said that the board does not issue permissions to occupy buildings, where the surplus area is yet to be handed over. Sources, however, refuted this, stating in certain cases, even these had been granted.
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