Redevelopment under DCPR 2034 Regulation

Section 33(7),33(7)A & 33(7)B

Prepared by:- Mr. Omkar Chodankar

 Rise of Society Redevelopment Concept
 The rapid development, employment and good infrastructure
are inviting people to migrate into this great city.
 Compare to increasing population, the availability of land
parcel to accommodate crowd is falling short.
 Since Mumbai turns into Overcrowded city, Getting land
parcel is becoming a new hurdles in development.
 One of the effective solution to tackle these civic issues is
redevelopment of existing Old Buildings or Housing societies
which creates more living space and better living conditions
for existing tenant.

2 Redevelopment under DCPR 2034 Regulation Section 33(7),33(7)A & 33(7)B

 List of Documents Required

 Society Registration Certificate, Original Building plan,

Development permission of existing structure
 Conveyance deed / Lease deed / Sale deed, Copy of Resolution
of SBGM, Documents /Papers / Deed / Agreement, Copy of Paid
Assessment Bill / Water Bill / Electric Bill.
 Documents related to the plot, Property card, D P Remarks,
Extract of 6/12, 7/12, Search Report and Title certificate, Index II,
N A Order and City Survey Plan.

3 Redevelopment under DCPR 2034 Regulation Section 33(7),33(7)A & 33(7)B

 STEP BY STEP REDEVELOPMENT
Steps Explanation
1.Redevelopment  Redevelopment of the Building shall be considered when adverse
structural audit report received from approved Structural Auditor
appointed.
 When Age of Building exceeds 30 years or more.

2.Conveyance  The Society should consider Redevelopment only if the Society

has Conveyance Deed & OC in their favour.
 If not then go for Repair.
3.Circulation of  Report should circulate within 1 month of time frame and ask for
the suggestions or objections (if any) of Society members.
Structural Audit Report  Total 51% consent & suggestions in written format shall be given
within 14 days of circulation for proceeding towards
redevelopment.

4.SGBM for  SGBM shall be held by Society member’s & discuss on the
suggestions given by society member’s
Redevelopment

4 Redevelopment under DCPR 2034 Regulation Section 33(7),33(7)A & 33(7)B

 Steps Explanation
5.Permission for  The Society shall forward a copy of the Structural Audit Report along
with an extract of the Re-development Resolution passed in the
Redevelopment SGBM to the Dy. Registrar of Co-operative Societies of their
respective Ward seeking permission for Re-development of their
Building.

6.Feasibility Report  The Dy. Registrar of Co-operative Societies appoints an Architect or a

Project Management Consultant to survey the Project & Plot
Potential, MHADA rules applicable, financial viability, comparison of
Repairs v/s Re-development & submit a Feasibility Report.
 This report should be circulate within 1month of time frame for
suggestions and objection if any.

7.SGBM for  Society shall form a “Redevelopment Committee” of at least 5

prominent / senior / original members of the Society.
Constitution of Re-  In this SGBM, members shall discuss on the suggestions and
development objections (if any) on feasibility report.
Committee
8.Appointment of  “Redevelopment Committee” will confirm the Architect/Civil Engineer/
Financial Consultant / Project Management Consultant from the list of
Consultants given by the office of Dy. Registrar of Co-operative Societies as well
as their fee chargeable.

5 Redevelopment under DCPR 2034 Regulation Section 33(7),33(7)A & 33(7)B

Steps Explanation
9.Pooling of Documents  The Society shall ask the appointed Consultant’s to
for Re-development proceed and go ahead to get all the clearances required
for re-development as well as provide necessary
documents for the same.
10.Tender Floating  Committee will float the tender for inviting different
agencies like Architect, Builders etc.

11.Opening tenders and  Within one week of last date of receipt of tenders, society
finalized the Developer of shall call for SGBM & Open the Tenders in front of all
Builder Society members
 Make comparative statements & Shortlist the developers
on the basis merit, L1Bidders, Experience etc. Select
most reliable developer
12.Letter of Intent  Society shall circulate agreed terms and conditions to all
society members & asking for their consent addressed to
the Builder, Dy. Registrar of Co-operative Societies.
 When 90% consent in the favour of redevelopment come
then “Redevelopment Committee” issue letter of intent to
selected builder of developer & request him to furnish
plans for new building to be constructed

6 Redevelopment under DCPR 2034 Regulation Section 33(7),33(7)A & 33(7)B

Steps Explanation
13.Re-development  “Redevelopment Committee” shall discuss and give
Agreement & Handing suggestions (if any) on draft development plan of new
over the property for re- building to be constructed.
 After then Developer shall proceed to get plans
development
approved & Obtained IOD.
 After that Developer should obtain Commencement
Certificate up to plinth.

14.Conveyance /  After Buildings gets completed, the Society shall follow

Occupation Certificates up and ensure that the Developer gives Conveyance,
Occupation Certificate and regular Water Connection
within 4 months from the date of handing over of the new
flats to the members of the Society.

7 Redevelopment under DCPR 2034 Regulation Section 33(7),33(7)A & 33(7)B

 Provisions in the favour of Redevelopment as per DCPR 2034

 70% Consent of eligible tenants was mandatory for the

redevelopment of cessed building as per DCR 1991 which is now
reduced to 51% of total eligible tenants.
 Minimum CA for residential unit – 300.00Sq.ft & Maximum CA
– 1292.00Sq.ft (Previous Max Area – 753)
 Commercial premises new area must equal to old carpet area of
old premises in existing building.
 The successful bidder has to give a bank guarantee equivalent to
20% of the total project cost to show his financial strength and
proof that he will not throw away the project midway.

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 Sections of DCPR 2034 which covers Redevelopments
1. Section 33 (7):
Redevelopment of Cessed buildings in the Island City by Co-operative
Housing Societies or of old buildings.

2. Section 33 (7)A:
Redevelopment of dilapidated/unsafe existing authorized tenant
occupied building in Suburbs and Extended Suburbs and existing
authorized non-cessed tenant occupied buildings in Mumbai City.

3. Section 33 (7)B:
Additional FSI for Redevelopment of existing residential housing
societies excluding buildings covered under regulation33(7) and
33(7)(A)

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 Basic Facts:
Cessed Buildings:
 Cess means “Tax”, so in simple term Cessed building is a Building which pays
“Tax”. This tax commonly referred as “Repair Tax”.
 The tax is paid by the tenants or Occupiers of the building simply because the
Maharashtra Housing and Area Development Act, 1976 (MHADA) makes
special provisions for repairs and reconstruction of "Cessed" buildings.
 The Maharashtra Housing and Area Development Authority (MHADA) is the
supervising authority for this scheme.
 For self-redevelopment of the housing society, MHADA will be sanctioning
authority for giving Single Window Clearance.

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 Which existing authority is taking care of these
buildings?
 Mumbai Building Repair and Reconstruction Board (MBRRB) which is
subsidiary of MHADA taking care of these building.
 The Govt. of Maharashtra with a aim to deal with the problems of repairs and
reconstructions of old dilapidated tenanted buildings in the Island City of
Mumbai whose rents were frozen at the year 1940 as per the provisions of the
Rent Control Act, formed the Bedekar Committee in the year 1968.

Formation of Formation of Board Bombay Act as well

GOM passed Act

Merging with MHADA

Bombay Building Board
Building Repairs and merged with
Repairs and Reconstructi the MHADA
Reconstructi on Board was under the act
on Act in the formed in the 1976 in
year 1969 year 1971 December
1977.

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 As per section 84 of MHAD Act 1976, Cess Building Categorized
into 3 groups:

Sr. No. Category of Year of Construction Number of cessed Number of cessed buildings
Bldg. buildings as of March 2008
1 A Prior to September 1940 16,502 13360
2 B Between 1.9.1940 to 1,489 1474
31.12.1950
3 C Between 1.1.1951 to 1,651 1270
30.9.1969

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 Section 33 (7): Redevelopment of Cessed buildings in the Island City by
Co-operative Housing Societies or of old buildings.
1. In the case of redevelopment of cessed building existing prior to 30/9/1969
undertaken by landlord or Co-operative societies of landlord and Co-operative
Housing Societies of landlord/occupiers, the total FSI shall be 3.00 of the gross
plot area or the FSI required for rehabilitation of existing occupiers plus 50%
incentive FSI whichever is more.
2. In case of composite redevelopment undertaken by landlord or Co-operative
societies of landlords and Co-operative Housing Societies of landlord/occupiers
jointly of 2 or more plots but not more than 5 plots with cessed buildings
existing prior to 30/9/1969, the FSI permissible will be 3.00 or FSI required for
rehabilitation to exiting occupiers plus 60%incentive FSI, whichever is more the
occupier shall be eligible for 8% additional rehab Carpet Area.
3. Provided further, that if the number of plots jointly undertaken for
redevelopment is six three or more with cessed buildings existing prior to
30/9/1969, the incentive FSI available will be 3.00 or FSI required of
rehabilitation for occupiers plus 70% incentive FSI whichever is more and the
occupier shall be eligible for 15% additional rehab Carpet Area.

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 Section 33 (7)A: Redevelopment of dilapidated/unsafe existing
authorized tenant occupied building in Suburbs and Extended Suburbs
and existing authorized non-cessed tenant occupied buildings.
1. In case of the plot consisting of only tenant occupied building, the F.S.I.
shall be equal to F.S.I. required for rehabilitation of existing lawful
tenant plus 50% incentive F.S.I. and the occupier shall be eligible for 5%
additional rehab carpet area.
2. In case of composite development i.e. the plot consisting of tenant
occupied building along with non-tenanted building, the FSI available
shall be equal to FSI required for rehabilitation of existing lawful tenant
plus 50% incentive FSI plus FSI that has already authorised been
utilized/consumed by the non-tenanted buildings/structures.
3. In case of composite development i.e. the plot consisting of tenant
occupied building along with non-tenanted building, the FSI available
shall be equal to FSI required for rehabilitation of existing lawful tenant
plus 50% incentive FSI plus FSI that has already authorised been
utilized/consumed by the non-tenanted buildings/structures.
4. No new tenancy created after 13/6/96 shall be considered.

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 Section 33 (7)B: Additional FSI for Redevelopment of existing residential housing
societies excluding buildings covered under regulation33(7) and 33(7)(A)
1. In case of redevelopment of existing residential housing
societies excluding cessed buildings proposed by Housing
societies/land lords or through their proponents where
existing members are proposed to be re-accommodated on
the same plot, incentive additional BUA to the extent of 15%
of existing BUA or 10 sq. m per tenement whichever is more
shall be permissible without premium.
2. If staircase, lift & lift lobby areas are claimed free of FSI by
charging premium as per prevailing Regulation then such
areas to that extent will be granted free of FSI without
charging premium.
3. If same is counted without charging premium as per prevailing
Regulation then these areas may be availed free of FSI by
charging premium as per these Regulations.

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16 Redevelopment under DCPR 2034 Regulation Section 33(7),33(7)A & 33(7)B