MPs and MLAs from across Mumbai met Chief Minister Prithviraj Chavan on Thursday and requested him to strike down the 2010 MHADA notification that calls for builders to surrender flats in redevelopment properties to the government instead of paying a premium.
Chavan had called a meeting of all elected representatives from Mumbai to discuss the delays in redevelopment projects of dilapidated MHADA buildings. Most of the elected MPs and MLAs claimed that the new notification had put a complete stop to redevelopment of such buildings as builders were finding the projects unviable.
The governments endeavour to create a housing stock is admirable but that does not mean it should bring in laws that ensure that redevelopment is completely stopped, said Shiv Sena MLA Subhash Desai.
There are over 56 MHADA plots across Mumbai on which numerous housing societies have been constructed. Many of these are old and members had been seeking redevelopment. Under the earlier rule,a builder undertaking redevelopment of a building had to pay a 40 per cent premium on the additional FSI sought to the state government.
The government,which has been keen to expand the housing stock under its control,decided to change the rules and issued a fresh notification in 2010. Under the new plan,a flat FSI of 2.5 was given,of which one was to be used for housing the existing members. Of the remaining 1.5 FSI,the the builder would have to give half the flats to the state.
Many of the builders are finding the new proposal unviable and many projects are stuck. Almost all the MPs and MLAs have asked the state government to reconsider its decision. One solution that the government can mull is to take flats that are equivalent in value to the premium that the builder would pay under the existing rule. This will help both the state in creating a housing stock and the builders in making the project viable, said Congress MP Gurudas Kamath.
Chavan said the government is working towards restarting the stalled projects and a final decision would be taken within a week.
The Conundrum EARLIER RULES
The state government,through MHADA,would seek a 40 per cent premium from builders on the additional FSI they sought. The state would get money but no flats
The state formulated a new policy in 2010,hoping to create a substantial housing stock
Under this,a flat FSI of 2.5 was given for redevelopment. An FSI of 1 was to be used for housing the original tenants. The remaining houses built through 1.5 FSI would have to be equally distributed between the builder and state
Many projects are stuck as builders feel the new policy is unviable
Solution GIVEN BY MPs and MLAs
They have asked the state government to go back to the old rules
Builders should give flats that have the value of the premium that they paid to the state government under the previous rules
Layout of all MHADA plots to be completed
Redevelopment to be done by MHADA,not private builders
Penalise private builders who have received Letters of Intent for redevelopment but have not started work on projects since 2005