Mumbai Building Repairs & Reconstruction Board (MBRRB)

Reconstruction of old cessed buildings:

The current permissible ceiling limit for carrying out structural repairs is Rs.2000/- per sq.m. built-up area of the cessed building as per the Maharashtra Govt.’s Ordinance dated 16.09.2008 issued by Housing Department of Government of Maharashtra. If the cost of structural repairs exceeds to Rs.2000/- per sq.mt. and tenants / landlords agree to bear the excess cost of repair, then the building can be undertaken for its repair. If the excess cost is not borne by the tenants/landlord of the building, then the building is declared as being beyond the "Economical Repairs" under Section 88(3)(a) of MHAD Act 1976 and proposed for reconstruction. Under the above circumstances, the building is declared under Section  88(3)(a) by Board and examined with the possibility of combined "Draft Scheme" under section 88(3)(b) considering the other buildings situated in the same premises.

If the proposal is found technically viable, then the building is acquired and undertaken for reconstruction under Development Control Regulation 33(9) of Mumbai. Under these circumstances the tenants of the building are temporarily shifted to Board's transit camp tenements and rehoused when the new building is ready for occupation as per usual procedure of MHADA.

As per the present policy of MHADA, the tenants are allotted atleast the tenements having 225 sq.ft. carpet area or area occupied by tenants in the old building. Maximum area allowed is 753 sq.ft. carpet area. As regards the non-residential tenements in the building, they are allotted area that was occupied by them in the original building. At present 4.00 FSI is being used for reconstruction of new building.

In case if a building cannot be reconstructed due to DC Rule/ Reservations or any other reason, the tenants of the respective building who are staying in transit camp or elsewhere are taken on the "Master List" being maintained by M.B.R.&R.Board. They are considered for allotment of tenement in new constructed building when additional / surplus tenements are available in any other schemes being executed by M.B.R.& R.Board or under DCR 33(7) through private Developer.

Redevelopment of cessed building through private developer

As the pace of reconstruction of cessed buildings by MBRRB was found to be not sufficient so as to cover the entire cessed buildings in the Island City of Mumbai, it was felt by the Govt. that the pace of redevelopment could be increased with the involvement of tenants/landlords/private developers.

With this in view, the State Govt. introduced the policy of giving FSI 2.00 for redevelopment of cessed buildings in the year 1984. In the year 1991, the Govt framed the Development Control Regulations for Mumbai. Under these Regulations, the Rule no. 33(7) was formed for redevelopment of cessed buildings in the Island City of Mumbai and the provisions of the policy of 1984 were incorporated in it.

However, there was no encouraging response to this scheme from the tenants/landlords. Hence, the Govt. formed a Committee under the Chairmanship of Shri Sukhtankar to overview the implementation of the scheme. On the submission of the Report of the Sukhtankar Committee, the Govt. in the year 1999 amended the Development Control Regulation 33(7). The brief highlights of the amended Development Control Regulation 33(7) are as follows:

1. In case of redevelopment of 'A' category cessed buildings (constructed before 1940) undertaken by the landlord or Cooperative Housing societies of landlord or occupiers, the total FSI shall be 2.5 of the gross plot area, or the FSI required for rehabilitation of existing occupiers plus 50% incentive FSI, whichever is higher. Under the new policy the developer is assured of at least 50% FSI for free sale. Also the policy enables rehabilitation of all occupants on the same plot, reducing social dislocation.
2. Self contained flats of minimum 225 sq.ft. and maximum 753 sq.ft. carpet area are given to the old residential tenants/occupants. Shopkeepers are given an area equivalent to their old area.
3. In case of 'B' category cessed buildings permissible FSI shall be the FSI required for rehabilitation of existing occupiers plus 50% incentive FSI.
4. As per the permissible FSI, stated above, will depend upon the number of occupiers and the actual area occupied by them, no new tenancy created after 13.06.1996 shall be taken into account, while computing the permissible FSI. Similarly, tenants in unauthorized constructions made in the cessed buildings shall not be taken into account while computing permissible FSI, i.e. the total no. of tenants/occupants should not increase after 13.06.1996. The responsibility for rehousing such tenants whose tenancy may have been created after 13.06.96 or who stay in unauthorized construction will lie solely with the NOC holder.
5. Though some buildings may belong to 'C' category (may not belong to 'A' or B' categories), they may be so dilapidated and dangerous that their reconstruction is most urgently necessary to this end, the Government has granted additional incentive FSI as per Point No.1 above for redevelopment of buildings of any category declared as dangerous, prior to monsoon of 1997.
6. A large number of old properties can be better developed by clubbing them together instead of developing each property separately. This leads to lesser congestion and better infrastructure such as internal roads, open spaces, etc. To encourage the composite redevelopment of several cessed properties together, the Government has granted additional incentive FSI for composite redevelopment.

The additional incentives in FSI for joint redevelopment of A, B or C category cessed buildings on two or more plots are as follows:

In some cases, it may not be possible to utilize the entire permissible FSI on the same plot, because of height restrictions, fire-safety regulations, etc. In such cases, the NOC holder is entitled to avail the benefit of “Transferable Development Rights” (TDR), to be used in the suburbs or extended suburbs in accordance with the relevant regulations of DCR 1991, for Greater Mumbai. This provision ensures that the scheme remains feasible even where the incentive FSI cannot be fully utilized on the same plot. In case of Heritage buildings in Grade III and precincts, no permission of the Municipal Commissioner or Heritage Conservation Committee is now necessary, if the height of the buildings does not exceed 24 meters (excluding stilt). All these modifications and incentives mentioned in Government gazette notification dated 25.01.1999 will not be applicable to the areas which are affected by the Coastal Regulation Zone (CRZ) notification issued by Ministry of Environment and Forest, Government of India vide notification dated 19th February 1991, and orders issued from time to time. The surplus Built-up area is to be surrendered to M.B.R & R. Board as per Schedule -III of MHADA Act 1976.

Note: As per Govt. G.R. dt. 2-3-2009, minimum carpet area admissible is 300 sq. ft. in lieu of 225 sq. ft

Under this option, the repairs are undertaken through the contractor appointed by the Board, under the supervision of the Architect and the Board’s Engineers. The procedure for carrying out repairs through this method are as follows:

1. Identification of repairs in a building by Survey, complaints from tenants social workers, message in Control Room, etc.
2. Inspection of the building, if necessary.
3. Appointment of Architect.
4. Issue of notice to landlord under clause 89 (I) of MHAD Act.
5. Intimation to occupants to from Co-op Hsg Society to take over the building for better preservation under section 103 (b) of MHAD Act.
6. Intimation to occupants and landlord to come forward for taking up repair works under NOC.
7. Propping the building and demolishing the dangerous portion if necessary.
8. Issue of vacation notice and shifting the residents to alternate accommodation if required.
9. If no response from occupants and land lords for repair and redevelopment, 1st joint inspection with Architect.
10. Submission of estimate by Architect.
11. If the cost is within permissible ceiling limit (P.C.L.) or if excess cost is paid by the occupants or landlord, estimate is to be processed to Board’s meeting for Administrative Approval.
12. Technical sanction, approval to DTP and invitation of tender.
13. Submission of check list to M.C.G.M.
14. Intimation to landlord for purchase of salvage materials.
15. Fixation of agency.
16. 2nd joint inspection by Board’s Engineer with Architect, Contractor and tenants and commencement of work.
17. Upon completion of 75% work, intimation to MCGM for enhancement of repair cess.

Under this option, the repairs are undertaken by the occupants/landlord of the building after obtaining the NOC of the Board. There are further two ways in which the cessed building can be repaired under this option. They are i) NOC with reimbursement and ii) NOC without reimbursement. The procedure for carrying out repairs through NOC with reimbursement is as follows:

A. NOC with reimbursement.

• Identification of repairs by occupants themselves or intimation from Board.
• Obtaining consent from occupants to decide to take up repair work.
• Appointment of NOC holders by occupants.
• Acceptance of appointment by NOC holders.
• Appointment of Architect on Boards panel.
• Acceptance of the NOC work by the Architect.
• Submission of proposal by NOC holder through Architect to Executive Engineer with the following Compliance on (2) to (4) above.
• Upto date payment of building repairs cess to MCGM.
• Undertaking for accepting Board’s terms and conditions for NOC on Rs.100 stamp paper by NOC holders. Similar undertaking from occupants certified by Architect and NOC holder (on plain paper).
• Undertaking for not carrying out unauthorized construction work on Rs.100 stamp paper.
• Undertaking for vacating the Board’s Transit Camp accommodation and shifting the residents to repaired premises on Rs. 100 stamp paper.
• Indemnity Bond indemnifying Board from all litigation, dispute between tenants, landlord, etc. on Rs.200 stamp paper.
• Tenants list certified by the Architect and NOC holder.
• Photographs of the affected portion of building and plan of the building duly indicating the proposed repairs.
• Inspection of the building by Board’s officer. Grant of NOC.
• Application to MCGM for Intimation of Disapproval (IOD) and Commencement Certificate (CC).
• Receipt of Intimation of Disapproval (IOD) and Commencement Certificate (CC ) from MCGM.
• Executing contract agreement by NOC holder with Executive Engineer.
• Appointment of construction agency by tenants and NOC holders.
• 2nd joint inspection by Board officers with NOC holders, Architect and the agency appointment by the NOC holders and commencement of work.
• Periodical reimbursement of expenditure incurred by NOC holders.
• Intimation to enhance the repair cess to MCGM, when 75% of the work has been done and cost to that effect has been reimbursed.

(B) NOC without reimbursement

The activities under this option are same as those for option A from 1-12.

• Repair work will be carried out by NOC Holders and tenants at their cost and hence no reimbursement.
• After completion of work, there is no enhancement of repair cess.