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It is not advisable to occupy a flat without obtaining OC

Saturday, May 26, 2018

Q.In a pagdi system (tenanted building), if the land owner is not ready to carry out the redevelopment,  can the tenants proceed to carry out redevelopment?
A. In the case of pagdi building, the redevelopment initiative can be taken only by the land owners. Of course, the land owner shall require the consent of more than 70% tenants. If the building is dilapidated, the building will be forcefully vacated by the Municipal Corporation of Greater Mumbai. As per the present law, if the land owner undertakes the redevelopment of dilapidated building, the tenants are entitled to get the same old area with 5% less or more. However, as a good practice, and in order to make the redevelopment a success formula, the land owners offer to give ownership title to the tenants in the new building and offer to give old area plus fungible FSI of 20% to 30%. Some land owners do ask for construction cost of fungible FSI from the tenants which range from Rs. 2500/- per sq. feet to Rs. 3000/-.  If the land owner does not want, he may not give fungible FSI to the tenants and such fungible FSI also cannot be used by the land owners for their project as well for sale. Therefore, to get a win and win situation, even if the developer/ land owner demands the cost of construction, the same should be paid to get the extra area.

For suburban Mumbai, the new Development control Rules 33(7A) have been introduced, which is similar to south Mumbai tenanted building regulations. It is a provision to benefit both the tenants and the land owners. Still, if the land owner does not take initiatives, you may proceed to complain to the MCGM and Mhada, who will take over the land for the purpose of redevelopment. You may also file a case, before the Hon’ble High Court / Civil Court / small causes court directing the land owner to initiate the redevelopment process.

Q.In a Mhada redeveloped building, if people occupy flat without OC, will the building face problems of water connection, electricity connection etc?
A.
There are many redevelopment buildings in Mhada colony as well as private plots, the occupation certificates are not obtained for several reasons. Since the building is ready for occupation as per the Architect certificate and the builder has to pay the rent till the members occupy the flat, the developers advise the societies to occupy the flat and state that the application for OC is submitted. Thereafter, it is noticed that due to certain reasons OC is not issued. This is done to save the rent of the developer and also the members are keen in occupying in the new building. If the members insists for OC to occupy the building, the developer stops the payment of rent which becomes a burden on the existing flat owners and they are forced to take the possession by arm twisting , even if they are not keen to take possession without OC. As per BMC rules, on the application made by the societies, on humanitarian ground, water supply is provided even when there is no OC. There are nearly 10000 buildings in Mumbai without OC. In case of redevelopment every second building is without OC. However, after the implementation of Real Estate (Regulation and Development ) Act, 2016, effective from 1st May 2017, it is not advisable to occupy the flats / building without obtaining the occupation certificate.


Q.I have a shop which is not registered and l haven't paid its stamp duty. The basic agreement with the builder is done but rest of the formalities were not done due to some reasons (builder was missing since then). Now, that the society is going under redevelopment, the committee members are not considering us for anything regarding redevelopment, though we have paid the maintenance of that shop for 20 years. Now where do I stand? Please let me know.
A
.Since you are having the possession of the shop and also having an agreement with the developer, you will have to be provided new shop in the redeveloped building. The society or the new developer cannot do the redevelopment without giving your shop. Since you have agreement, you will be able to pay the stamp duty on the said agreement along with penalty of 2% per month on the stamp duty amount due which may be maximum up to 400% penalty. Once the stamp duty and penalty is paid, society can admit you as the members of the society. In case, the society still does not admit you as the member, you can file a case against the society before the Deputy registrar and get the order against the society to admit you as the member of the society.

(Ramesh S. Prabhu is Chairman,  Maharashtra Societies Welfare Association)
 

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