Deadlock in redevelopment of 388 old MHADA buildings ends

STRAP: Govt to introduce new DCR, MHADA to redevelop buildings that fail to attract developers

Mumbai: The deadlock in the redevelopment of 388 dilapidated MHADA buildings in Mumbai ended on Friday after the government decided to allow builders incentive FSI by adopting a new formula and working it into the Development Control Rules (DCR) as DCR 33 (24). While this has paved the way for flat owners to get bigger houses of 405 square feet, a very significant outcome is that MHADA will have to redevelop those buildings which fail to attract builders.

The redevelopment issue of the 388 buildings had been pending for years owing to the lack of a specific DCR for buildings which had already been redeveloped by MHADA once. Recently, the issue was raised in the state legislature, and Chief Minister Eknath Shinde announced that the buildings would be redeveloped under a new regulation, which would have all the benefits of DCR 33 (7). Under the latter, all flat owners get new homes free of cost while the builder gets incentive FSI to recover his costs and make a sizeable profit.

After Shinde’s announcement, the MHADA Kruti Samiti—which has been demanding redevelopment of the 388 buildings—and MHADA approached the urban development department (UDD). However, the UDD said that the buildings could not get the benefits of 33 (7), as they had already been redeveloped earlier and had utilised the full FSI available at that time.

The deadlock was resolved on Friday in a meeting of officials from the UDD, housing department, MHADA, chief minister’s office and office-bearers of the Samiti. A new formula was arrived at, under which the developer will get just 10 percent less incentive FSI than that available in 33 (7). Incentive FSI is given according to the size of the plot and the number of flat owners in the building, and in this case will be 60 to 90 percent over and above that consumed for the rehabilitation of existing flat owners.

Bhushan Gagrani, additional chief secretary in the chief minister’s office, confirmed the development and said that the government would now include this regulation in the DCR. “The issue was pending due to the lack of a specific DCR,” he said. “The new formula and regulation 33 (24) will be included in the Mumbai DCR and all the flat owners in the 388 buildings will get bigger homes.”

Milind Tulaskar, advisor to the MHADA Kruti Samiti, who was present at the Friday meeting, said he was satisfied with the solution. “Most importantly, MHADA will be responsible for the redevelopment of buildings in which the society fails to attract any builder,” he said. “This decision of the Shinde-Fadnavis government will help Marathi families living in these buildings to continue staying in Mumbai.” Tulaskar added that even in the redevelopment by a private builder, there would be a tripartite agreement between the society, the builder and MHADA.