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By Dr. Sanjay Chaturvedi, LLB, PhD.

 Mumbai has been established by its Textile Mills. A 200 year old city, is an agglomeration of Seven islands. Development Control Regulations introduced in 1991, popularly known as DCR has specific provisions for every aspects of the old city which also includes Cessed Buildings. The Cess Buildings are nothing but Repair Cessed controled by Repair Board under MHADA. 

Initially there were 19,642 cessed buildings in the Island City with classification in ‘A’, ‘B’ and ‘C’ category as under –

(a) Category ‘A’ …… 16,502
(b) Category ‘B’ …… 1,491
(c) Category ‘C’ …… 1,651
Total …… 19,642

 

Thereafter some of the buildings were de-cessed and as per the record of June 1995, there were 18,390 cessed buildings in the Island City.

 

Now as per the amended D.C. Regulation No. 33(7), following F.S.I. are available –

  • for re-construction and re-development of the cessed buildings of ‘A” category which attract provision of MHADA Act, floor space index shall be 5 on the gross plot area of F.S.I., required for rehabilitation o existing tenants + 50% incentive F.S.I.
  • In case of re-development scheme of ‘B’ category cessed buildings undertaken by the Landlord and or Co-operative Housing Societies of Landlord and/or occupiers, the total S.I. shall be the

F.S.I. required for the rehabilitation of the existing occupiers + 50% incentive F.S.I.

  • In case of composite re-development of ‘A’, ‘B’ and ‘C’ category buildings declared as dangerous buildings by the Board before the monsoon of 1997, F.S.I. available will be as for ‘A’ category cessed buildings vide (a) above.
  • In case of composite development undertaken by different landlords and or Co-operative Housing Society of Landlords ad/ or occupiers jointly of two or more plots upto five plots with ‘A’, ‘B’ and ‘C’ category cessed buildings, F.S.I. permissible will be 2.5 or F.S.I. required for rehabilitation of the occupiers + 60 incentive F.S.I., whichever is more. Provided however if the number of plots jointly undertaken for re-development is six or more, S.I. 2.5 or F.S.I. required for rehabilitation of occupiers

+ 70% incentive F.S.I., whichever is more will be available.

  • Construction or re-construction of old builders under reservation/ zones contemplated in the Development Plan is permitted in accordance with the provisions of Notification No. TPB/439*2/ 4080-ARDP/UD-11 dated 3.6.1992 issued under section 31 of the M.R. & T.P. Act, which was issued by the Government to facilitate re-development of slum.
  • 20% of the incentive F.S.I. can be used for non-residential purpose otherwise permissible in the Development Control
  • The other terms and conditions being as specified in Appendix III which are more or less parallel to the conditions and guidelines stipulated for re-development of notified slums under D.C. Regulations 33 10).
  • The Ministry of Forest & Environment, Government of India had issued a notification on 2.1991 for regulating development in Coastal area which is generally known as Coastal zone Regulation. The development in he Coastal area has to be governed as per the provisions o the Development Control regulations as the same were sanctioned on 20.2.1991 or amendment which have been carried out thereafter.
  • In view of the above, while undertaking re-development of the cessed buildings in the Coastal

 

areas, the amended provision of the D.C. Regulation No.33 (7) sanction on 25.1.1991 are not available and re-development of such buildings are governed as per the notification issued by the State Government on 10.1.1989. Thus while undertaking re-development in Coastal Zone Area,

F.S.I. while undertaking re-development has to be restricted to 2.00 or existing F.S.I. required for rehabilitation of the existing tenants whichever is more.

 

Amendments and clarification issue buy the government after 25.1.1999 :

Government by heir notification dated 9.1.2002 issued a corrigendum under No. TPB/432001/2202/CR- 3/2002/UD-11 so as to remove certain annomoly crept in the modification sanctioned by the Government on 25.1.1999. As per the said corrigendum in case of composite redevelopment undertaken by the different landlords and / or Co-operative Housing Society of Landlords jointly or 2 or more plots but not more than 5 plots F.S.I. permissible will be 2.5 or F.S.I. required for rehabilitation of existing occupiers + 60% incentive

  • whichever is

Government issued another notification under No.TPB/4305/500CR61/2008/UD-11 dated 27.2.2004 making amendment to the D.C. Regulation No.33(7) whereby buildings of Department of Police, Police Housing Corporation, Jail & Homguards of Government of Maharashtra constructed prior to 1940 have also been included in the provision of the D.C. Regulation No.33 (7). However the development will be considered only after due approval of the Committee appointed by the Government as mentioned in the said amendment to the D.C. Regulation.

Government has also issued a directive under section 37 (1) of the M.R. & T.P. Act under No.TPB 4303/ 533/CR-63/03/UD-11 dated 19.3.2003 adding Sub-clause (e) under D.C. Regulation No.33 (7) as under – “In case of re-development undertaken by the Co-operative Housing Society of occupiers of the building which was earlier ‘A’ category cessed buildings but thereafter due to its purchase / acquisition by Co- operative Housing Society of occupiers, exempted from payment of cess and which have been declared unsafe by BHAD Board / B.M.C. the total F.S.I. shall be 2.5 of the gross plot area or the F.S.I. required for rehabilitation of existing occupiers + 50% incentive F.S.I. whichever is more.

After sanctioning of the D.C. Regulation in 1999, additional buildings were declare unsafe by the Committee of MHADA and B.M.C. official. But however as per the sanctioned D.C. Regulation no.33 (7) the incentive F.S.I. was pegged down to the buildings declared unsafe till 1997 by MHADA. In order to include additional buildings also under the purview of the regulation Government issued another directive replacing the words “before previous monsoon” in the regulation under No. TPB/4304/660/CR-90/04/UD-11 dated 24.8.2004.

Government issued a clarification vide letter No. TPB/4302/239/Cr 202/2002 / UD-11 dated 6.1.2003 hat restrictions mentioned in sub-regulations 9 of Regulation No.33 (7) is only applicable to the cases of Residential Zone only. Thus 20% non-residential users permissible out of Saleable component of the amended D.C. Regulation No.33(7) are restricted to Residential zone only whereas in other zones the saleable component could be used for the users as per the Zoning Regulation.

Government has issued another clarification No. TPB/4303/960/CR 113/2003/UD-11 dated 5.6.2003 ha the benefit of the said modified D.C. Regulation No. 33(7) my be allowed for re-development schemes already in progress where the occupation permission of rehabilitation buildings are already granted and Completion / Occupation Certificate to sell buildings is pending with a condition hat the scheme is fulfilling all the conditions . requirements as stipulated in the modified D.C. Regulation No.33 (7).

Government issued another clarification under No. TPB/4302/2188/CR-87/03/UD-11 dated 7.6.2003 that any re-development project of cessed buildings in CRZ area, if total floor area of the new buildings does not exceed that of the old buildings (excluding the area of the staircase, lift and lift lobby in new buildings shall be exempted from computation of F.S.I.

Similarly Government issued another clarification under No.TPB/4303/1329/CR-176/03/UD-11 dated September 2003 that in re-development project of cessed buildings in CRZ area, 10% of the balcony shall be exempted from F.S.I. computation as per the provision in Regulation No.38 (22) of the said Regulation subject to the condition that the balconies shall not be enclosed.

Municipal Corporation of Brihan Mumbai has also issued a policy circular under No. HE/121/DPC/GIN of 16.4.2000 laying down guidelines for carrying out re-construction of the old cessed buildings, et., under the provision of amended D.C Regulation No.33 (7).

Lease rent while undertaking re-development under D.C. Regulation No.33 (7) :

The State Government in Urban Development Department has issued a directive to the Municipal Corporation under No. BMC/2398/3176/CR-589/UC-21 dated 18.1.2000 that Municipal Corporation shall levy lease rent based on 15% market value of the land as on 1.1.1976 if buildings are re-developed or re- constructed under the provisions of D.C. Regulation No.33 (7) on the improvement Trust Plot which have been lease out by the Corporation in the past.

 

Assessment of Properties Developed under Regulation No.33 (7) :

The State Government in urban  Development  Department  has issued  Notification  under No. BMC-1796/6108/CR-50/97/UD-11 dated 7.11.1997 lay down guidelines for levy of Assessments Tax at reduced rate.

  1. For land under constructions, assess the ULC by adopting 25% of the market value prevailing in the area, i.e. normal rate.
  2. The Property Taxes shall be levied as under :-

Period Reduced rate of Property Tax

  1. From 1st year to 10th year 20% of the rate of Property Tax levied in the particular year
  2. From 11th year to 15th year 50% of the rate of Property Tax levied in the particular year
  3. From 16th year to 20th year 80% of the rate of Property Tax in the particular

The Assessor & Collector of the M.M.C. has also issued a Policy Circular under No. AC/42/Gen on 3.2.1990 laying down guideline in this regard.

 

Public Interest litigation :

Arising out of the various clarifications amendment t D.C. Regulation No.33 (7), re-construction / re- development of the buildings started at a large scale specifically in ‘C’ and ‘D’ Wards and as a result since in most of the cases existing F.S.I. was more than 2.5 number of skyscrapers started coming up on the narrow roads creating traffic and other infrastructural problems. In view of the amended provision quite a good number of buildings which were not in dilapidated conditions were also taken up for re-construction by the unscrupulous Builders for huge profits. As a result Public Interest Litigation has been filed in the Court challenging the re-construction / redevelopment of the buildings undertaken under D.C. Regulation No.33 (7). The main contention of the public interest litigation is that the buildings which are not in dilapidate conditions in ‘C’ and ‘D’ Wards are also being re-developed under provision of D.C. Regulation No.33 (7) without regard to the availability of infrastructure to sustain such a development. This is against the spirit of the regulations. The other point was that tenancy are being sub-divided by BHAD Board so as to enable developers to avail more F.S.I. as per the Court Order, Government has no appointed a Committee to scrutinize the proposals submitted under D.C. Regulation No.33 (7) to verify dilapidated conditions of the buildings and such buildings which are beyond repairs and need to be re-constructed are only permitted for re-development under D.C. Regulation No.33 (7). The matter went into Supreme Court. The Hon’ble Court has allowed the provision of the section for the transitional time.

 

Mill Locations grouped by ownership National Textile Corporation (NTC)

 

  1. Kohinoor Mills 3 (North)
  2. India United Dye Works 6 (North)
  3. Elphinstone Mills (South)
  4. Jupiter Mills (South)
  5. Shree Madhusudan Mills (South)
  6. Jam Mills (?)
  7. Sitaram Mills (?)
  8. New Hind Textile Mills (?)
  9. Kohinoor Mills 1 (North)
  10. Kohinoor Mills 2 (North)
  11. Tata Mills (North)
  12. Mumbai Textile Mills (Sakseria Mills) (?)
  13. Bharat Mills (?)
  14. Digvijay Mills (?)
  15. Apollo Mills (South)
  16. India United Mills 4 (?)
  17. India United Mills 2 (?)
  18. India United Mills 3 (?)
  19. India United Mills 5 (?)
  20. Gold Mohur Mills (?)
  21. Poddar Processors (Edward Mills) (?)
  22. India United Mills 1 (North)
  23. Finlay Mills (?)
  24. Poddar Mills (?)
  25. New City of Bombay Manufacturing Mills (?) Maharashtra State Textile Corporation (MSTC)
  26. Western India Spinning & Weaving Mills Privately Owned Mills
  27. Swadeshi Mills
  28. Standard Mills
  29. Matulya Mills
  30. Phoenix Mills
  31. Modern Mills
  32. Hindoostan Spinning & Weaving Mills 1
  33. Hindoostan Spinning & Weaving Mills 2
  34. Ruby Mills
  35. Hindoostan Spinning & Weaving Mills 3 (Crown Mills)
  36. Bombay Dyeing (Spring Mills)
  37. Victoria Mills
  38. Gokuldas Morarjee Mills 1
  39. Swan Mills
  40. Mafatlal Mills 3

 

  1. Khatau Makanji Spinning & Weaving Mills
  2. Century Spinning & Weaving Mills
  3. Bombay Dyeing & Manufacturing Company
  4. Prakash Cotton Mills
  5. Shriniwas Mills
  6. Kamala Mills
  7. Shree Ram Mills
  8. Gokuldas Morarjee Mills 2
  9. Dawn Mills
  10. Standard Mills 2
  11. Piramal Spinning & Weaving Mills
  12. Raghuvanshi Mills
  13. New Great Eastern Spinning & Weaving Mills
  14. Simplex Mills
  15. Bradbury Mills
  16. Mafatlal Mills 1
  17. Mafatlal Mills 2
  18. Mukesh Textile Mills