Ahead of BMC polls, Eknath Shinde announces OC amnesty scheme, pagdi redevelopment push

Making a statement in the Assembly, Shinde said, “The ‘Mahayuti’ government has been working on transforming Mumbai over the past three-and-a-half years, taking solid steps to bring back original residents and ensure the safety of those currently living here. Nearly 20,000 buildings in the city were unable to obtain an OC due to minor deviations from the originally approved building plan. As a result, residents in these buildings have been burdened with paying double the property tax, water tax, and sewage charges. The scheme will directly benefit over 2.5 lakh families and more than 10 lakh residents. It addresses long-standing demands from various housing societies for regularization.”

The scheme’s benefits are not limited to residential properties. Hospitals and schools currently trapped on the list of unauthorized constructions will also be able to avail of the scheme.

Under the scheme, for the area to be regularized (e.g., additional FSI/Fungible Area), a direct 50 per cent concession will be given on the prevailing ready reckoner rate for calculating the premium. Proposals submitted within the first six months will face no penalty. Proposals submitted between six months and one year will be charged a penalty of 50 per cent of the prevailing rate.

Shinde also mentioned that the municipal corporation has been instructed to establish a separate procedure for individual flat owners who require an OC, even if the entire building does not apply collectively.  As a result, residents will no longer have to pay the doubled property tax penalty due to the lack of an OC. Obtaining bank loans for the purchase and sale of homes will become easier. Citizens will be able to utilize their full area in redevelopment, moving beyond the limitations of the original sanctioned map.

Shinde further mentioned about the government’s intention to implement a similar policy in other municipal corporations across the state and instructed the urban department to submit a detailed report on the matter.

He also announced a separate regulatory framework to free Mumbai from the pagdi system and ensure redevelopment of such buildings. In his address to the legislative assembly, Shinde said the rights of both tenants and landlords will be protected.

Shinde said approximately 19,000 cess buildings are known as pagdi buildings. “These are pre-1960 buildings. Some of these buildings have already been redeveloped, some have deteriorated and collapsed, while nearly more than 13,000 buildings are still awaiting redevelopment. The tenants in these buildings are protected under the Maharashtra Rent Control Act. These buildings, the tenants, and their agreements are all legally valid,” he said.

There have been complaints from landlords that due to the tenants’ rehabilitation rights, they do not get fair compensation for their ownership. “Numerous disputes between tenants and landlords are pending in courts. As a result, redevelopment of pagdi buildings receives very little response. Proper and fair redevelopment of pagdi buildings is necessary. For that, it is also essential to protect the rights of both tenants and landlords. For economically weaker sections and low-income groups, granting FSI alone is not enough — provisions must also be made for cost-free reconstruction of their homes. For this purpose, a separate regulatory framework will be created,” he added.

The new rules will include provisions such as granting FSI equivalent to the area occupied by the tenants, granting the original FSI to landlords based on land ownership, and providing incentive FSI required for cost-free reconstruction of homes of pagdi holders from economically weaker and low-income groups. If for any reason — such as height restrictions or other limitations — it is not possible to use all three types of FSI entirely, the remaining FSI will be made available in the form of transfer development rights.

This regulatory framework will clear the way for the redevelopment of pagdi buildings. “It will prevent the collapse of dilapidated buildings and thus avoid loss of life and property. Existing redevelopment options such as 33(7) and 33(9) will continue to remain in place. For buildings that have not yet benefited from these schemes, this will serve as a new option,” he said.

Additionally, about 28,000 disputes between tenants and landlords in these buildings are currently pending. Many families have been stuck in litigation for decades. To accelerate redevelopment, with the prior approval of the High Court, adequate additional fast-track courts will be established to dispose of these cases within the next three years.