Govt notification rises confusions among developers

Q: It seems that Govts policy with respect to affordable housing has created lot of doubts in minds of developers.

Sandeep Mhatre, Mumbai

11th March 2014

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Replies (4)

Hi,
There is a general feeling that the said notification is silent on the issues which can arise after the grant of occupation. The policies for guidelines should be formulated for maintenance of common amenities, utilities and payment of the property tax.

Arup rajan, Mumbai

11th March 2014

Comment

Hi Suresh,
I heard it that the occupancy certificate for the free-sale portion will not be granted till the OC for the LIG unit is issued which could delay the construction of the project. Developers will now also need more time to amend the project designs as per the notification, which could further delay the projects by 4-6 months.

Kishore Pathak, Mumbai

11th March 2014

Comment

Hmmm. Yeah Kishore. As per the notification, MHADA has the option to buy the LIG flats within six months after the construction. Therefore, the developer has to fund the expenses from his own pocket, unlike the free-sale flats, which are built from the pre-booking amount collected at the time of booking the flats. The government should revise the notification, ensuring that MHADA buys the flats well in advance or during various stages of construction itself.

Vinay Dixit, Mumbai

11th March 2014

Hi,
In fact the move is aimed at benefiting low income groups (LIG) and economically weaker sections (EWS), who will be allotted the 323-538 sq ft tenements through a lottery by the MHADA. The scheme will create more housing stock at a time when MHADA does not have much land.

Sunil Joshi, Mumbai

11th March 2014

Comment

Hi Sunil,
The notification says that when the developer intimates MHADA about granting of an occupation certificate (OC) by the planning or civic body to his newly-built apartments, MHADA has to decide within six months, if it will purchase the 20 per cent tenements or allot them to those selected through a lottery system. In case of a plot, if MHADA declines to purchase it within six months, the developer can sell it in the open market, for which additional FSI will not be permissible

Suresh Khanna, Mumbai

11th March 2014

Hi Sandeep,
Yeah the developers are in two minds regarding the decision taken by the Govt regarding affordable housing. There is a general feeling among the developers that the Maharashtra government’s notification for the builders, developing a housing project on a 4,000 sq m (acre) plot, to reserve 20 per cent of the area for affordable housing, is not in sync with the market’s reality.

Ravi Waghmare, Mumbai

11th March 2014

Comment

Hey Dude,
The builders are demanding clarity regarding this issue. The notification by the Maharashtra government says that the developers must keep 20 per cent area for affordable housing. The developer will receive 20 per cent extra floor space index (FSI) as an incentive for the 20 per cent reservation for public housing.

Ramesk Polekar, Mumbai

11th March 2014