Tomorrow, it will be exactly two years since Maharashtra Chamber of Housing Industry (MCHI) and the state government inked a Memorandum of Understanding (MoU). The intent was to develop five lakh affordable homes in Mumbai and the Mumbai Metropolitan Region (MMR). However, in a recent statement, MCHI has claimed that nothing has been accomplished in the last 24 months. According to the builders’ body, the proposal to create five lakh houses as part of the Homes for All initiative between the real estate industry and the Maharashtra government is gathering dust in Mantralaya.
Distant dream “The overall objective of the initiative was to address the yawning housing demand-supply gap and to provide affordable homes to the economically weaker sections, lower income group and middle income group,” Paras Gundecha, president of MCHI-CREDAI said. In this whole initiative the builders were going to develop the affordable homes on their projects and lands. MCHI also claims that the availability of these five lakh houses would have eased the demand-supply mismatch and kept the market rates under some kind of check. “But unfortunately, today, Mumbai has emerged as the costliest real estate market in the country,” said Gundecha. Gundecha claims the government usually doesn’t give clearances and the few ventures that get the nod are stopped midway. If the same situation persists, then nothing will happen even in the next five years, they say.
High-rises, high prices: Builders say if the project had come to fruition, the demand-supply mismatch in Mumbai, which has emerged as the costliest real estate market in the country, would have been checked to a great extent.
Decision deficit? According to MCHI, in spite of repeated reminders to the authorities at various levels, nothing has been accomplished, though, as per the MoU, the state government was to extend all necessary cooperation. The MoU envisaged government steps like including revamping legislation, offering incentives to developers, and authorising the nodal agency to provide for a single-window clearance to projects comprising affordable homes. The pact was signed between the then chief minister Ashok Chavan and the then MCHI president Pravin Doshi. Even other ministers and several bureaucrats were present in the meeting. However, with the new CM and the change in bureaucracy, builders say things have changed dramatically.
The government claims that it’s unfair on the part of the builders to play this blame game. “We had meetings with the builders, there were engagements with the chief minister – both the past and the present one. However, some of their demands were practical, and others weren’t. Hence, not everything could be accepted. We did try to accommodate the builders and if the projects didn’t start then it’s not just our fault,” said Sachin Ahir, state housing minister.
April 28, 2010 Maharashtra Chamber of Housing Industry and the state government inked a Memorandum of Understanding (MoU) with the aim of developing five lakh affordable homes in Mumbai and the Mumbai Metropolitan Region (MMR).
It seems like the opening of Kharghar golf course is jinxed. The ambitious project of Cidco which was to be inaugurated yesterday by chief minister Prithviraj Chavan has been cancelled again due to the election code of conduct. The project has been waiting for opening for quite some time now. Earlier, Cidco officials were planning to open the golf course on March 17, that is on Cidco’s foundation day but it didn’t happen as the chief minister could not confirm his availability due to the budget session. According to sources, the Cidco administration wanted both the chief minister and the deputy chief minister to be present for the function. In the first week of April, the planning agency had to cancel the inauguration programme due to unavailability of the chief minister. According to officials, “The planning agency wanted that its ambitious project be inaugurated by the chief minister. Since the budget session was going on, the CM was busy and the authorities were waiting for the right time.” Now, that the code of conduct is on, the officials will have to take permission from the election commission. The code of conduct is in force due to the election of member from Raigad ZP to the legislative council. The project, which began in 2008, was supposed to be completed by December 2011.
Kharghar Golf Course Rate Chart
However, it faced several hurdles delaying its scheduled target of completion. The 11-hole golf course will have a permanent club facility along with a practice driving range that would function as a training academy for golf enthusiasts. It will also house a five-star hotel. However, all these facilities will be available only in the second phase. After the opening, Cidco will start ‘pay and play’ scheme at the golf course. Till the appointment of a permanent club facility and adhoc club will manage the affairs at the golf club. The work of the golf course has been carried out under the supervision of famous golf player Phil Rayon. The golf course project, spanning an area of 103 hectare, had landed in trouble after the forest department lodged offences of encroachment of forestland against the planning agency in September 2010. Due to certain issues with the forest department, the golf course could not be completed as per the schedule. Initially, it was planned as an 18-hole course but had to be reduced to an 11-hole course, which was a major setback. The planning agency had to redesign the entire architectural plan of the golf course because of which the project delayed. The construction of the golf course had commenced on January 31, 2008. Meanwhile, residents were of the view that there is no need to wait for the chief minister or the deputy chief minister to inaugurate the project. The same can be done by a freedom fighter or any defense personnel who has fought wars for the country.
The revenue department has begun the process of creating a data bank on all government land in the state. This measure follows a stricture in the recent CAGs report that data on land given on lease is not available with the department. Swadhin Kshatriya,principal secretary,revenue and forests department,said they had taken the CAGs comment seriously and wanted to ensure that the government had a data bank of its land. The data bank will be created at various levels such as the village,tehsil,collector and sub-division,he said. The long-term aim,he said,was to monitor how the land was being used and whether the terms and conditions set by the government were being followed. During the recent legislative session,speaker Dilip Walse-Patil had directed the state government to order a CBI inquiry after it was brought to the notice of the House how the city collectorate had woken up 17 years after the lease agreement for a 75,000 sq feet plot in Mazgaon had expired. On Monday,the department issued a circular to all departments dealing with land to update their records on land given on lease,the status of lease,the rent being charged and whether the lease conditions had been violated. The CAG report brought out irregularities in land allotment to various educational institutes promoted by politicians.It was critical of the government for failing to collect rent from these leased plots.
Skyline of Mumbai from across Back Bay. (Photo credit: Wikipedia)
There are so many residential flats lying unsold in Mumbai that it will take more than three years to clear the stock. This means the skyrocketing price of your dream house might ease up. The value of the current unsold housing stock in Mumbai is around Rs8,535crore.
According to the quarterly report released by real estate research firm Liases Foras, there is 12.9 crore sqft inventory (housing projects launched, but not necessarily built) with 1.13 lakh housing units lying unsold in the Mumbai Metropolitan Region (MMR), which includes the city and its satellite towns. Around 6 crore sqft inventory with 35,000 housing units is lying unsold within the city limits, the report added.
The size of each flat in the MMR is 1,100 sqft, while that in the city limits is 1,600 sqft.
“It will take at least 40 months to sell this unsold stock in Mumbai, and that too if there are no new projects. But launches are happening frequently. This means the inventory will pile up further,” said Pankaj Kapoor, managing director of Liases Foras. “In a healthy market, the inventory should be cleared within eight months. But the number of unsold flats in the city is rising every year. The housing stock is not drying up as it was projected in one-and-a-half year back,” he added.
In 2010-11, 2.66 crore sqft residential stock was lying unsold within the city limits, and 8.17 crore sqft in the MMR. Still, developers launched more than 100 housing projects in the city last year.
But the realty scene is not so grim in other cities.
Last year, while only 96 lakh sqft residential space was sold in city —at 3% — Pune registered 28% sales and Chennai 37% sales. “Pune is selling more residential flats compared with Mumbai. It’s real estate is an end-user driven market, which is a healthy and good sign,” said Kapoor, adding that the realty market in Mumbai is unproductive.
“It is not beneficial to anyone except investors. Developers will face severe fund crunch; banks will be reluctant to offer loans and people will not afford to buy their dream house,” he added. Anand Gupta, treasurer of the Builder Association of India, said there is huge gap between the demand and supply.
“There are many people who cannot afford to buy their dream home. And, then there are investors who buy more than one flat because they get good appreciation. Because of faulty law, they do not give the flats on rent and hence, the unsold inventory percentage is so high,” he said.
The residents of Ghansoli are a harassed lot and feel neglected as none of the agencies— Navi Mumbai Municipal Corporation or Cidco— has paid any heed to their complaints and requests regarding the unclean environment. The population of the node is multiplying fast but it lacks basic amenities and infrastructure to add to the mess the unclean nullahs are proving to be a headache for the locals, people complain. “I shifted to Ghansoli from Vashi nearly a year back and stay in sector-7. Though the place where I stay is plush, the moment I step out to reach to the station, there is this 500 metres broad nullah, which starts from the Gharonda complex and transforms into a filthy serpentine flow through the Simplex complex further to vegetable markets,” said Abhijit Angne. He added, “The nullah poses threat to basic hygiene and health, given the fact that it makes ground for mosquito breeding and eventually spreads airborne diseases. We have spent multiple crores on buying a house here, but the government is not doing its bit. The stench emanating from the nullah makes life difficult. It’s a mix of chemicals, human wastes and more that flows as a black stream of molten hell.” Angne has a suggestion for civic authorities, he said, “The expanse of this nullah is massive, if covered with cement enclosure, its surface can serve as an awesome utility park with jogging tracks, and the entire surroundings will catapult into a very rich, healthy and wonderful place in Navi Mumbai to live in.” Backing the views expressed by Angne, is a resident of sector-3 in Ghansoli. “The pungent smell emanating from these drains, is giving us sleepless nights. You will find chemical tankers parked on the road near the station. The drivers keep the lids of these tankers open and the gas mixes with air leading to foul smell in the area. This has been happening for quite some time now,” a resident, who requested not to be named, said. Another resident GK Kunwar, from sector 3, said, “Ghansoli has always been neglected. There is no single amenity like a good park or basic infrastructure. We have a plot for central park in the node but the work is yet to begin.” He added, “When we enquire about the delay in having central park, the NMMC officials say the plot is yet to be transferred by Cidco to them.” The NMMC officials, said, “They will start with cleaning of nullahs from first week of May. We will desilt the nullahs and clean them up.” Earlier, Navi Mumbai, mayor, Sagar Naik had directed the officials to clean nullahs six times in a year.
Builders across the city of Mumbai have planned a one day token strike on May 3,against the arbitrary and adhoc policy changes by the govt and the corruption in the govt machinery. The builders are protesting the inordinate delays and corruption in the approvals granting process. Currently each building proposal requires more than 20 approvals from different govt dept. The time for which can take upto months. Approx 5 lakh sq feet of construction is held up due to approvals not being received. It may be noted that the govt aim of providing affordable houses is in shambles currently as flats in Navi Mumbai region cost more than 50 lakhs for a 1 bhk flat. No builder will enter into any transaction on the 3rd of May 2012.
Commissioner’s Office 27571095 Water Supply Dept. 27562502 MTNL PRO 27806070/71 APMC Market 27666501 CIDCO Boardline 67918100 CIDCO Nerul office 27701617 Dy RTO, Vashi 27650701 NMMT Turbhe office 27841828 BEST PRO 22816656 Panvel Municipal Council 27458040/41/42
Colleges Vashi Fr Agnel’s Polytechnic 41611000 Fr Agnel Jr College 27663739 KBP Modern College 27661210 Motilal College 27663061 Rajiv Gandhi College 27667377 Sainath College Sanpada 27660848 Western College 27753227 Nerul D Y Patil Dental 27709274 MGM College 27421732 SIES College Mgmt 27708333 Science & Commerce 27708371 Tilak Junior College 27710033 CBD Bharati Vid. Pharm 27572131 Bharati Vid. Junior College 27562583 IMSR 27572433 Kalamboli M G M Medical 27423404 M G M Engg 27423403
Emergency numbers Police 100 Fire brigade 101 Accident ambulance 102 Ambulance for heart attack 105
Hospital Lakshdeep Medical 27664696 Nayak Laboratory 27600500 Shushrusha Heart 27722506 D Y Patil Nerul 39215999 Sterling Hospital, Vashi 27826969 MGM Hospital, Vashi 61526666 Apollo Clinic, Vashi 27881322 MGM Hospital, CBD 27572293 MGM Hospital, Kalamboli 27423405 Vashi Civic Hospital 27899901 Koparkhairane Municipal 27543577 Nerul Civic Hospital 277003760 PKC Hospital 27652476/77/78 Lifeline hospital, Panvel 61567000/03 Fortis Hiranandani Hospital Emergency no 022 39199100 Boardline 022 39199222 Malls Palm Beach Galleria 65127771 City Centre 27882883 Raghuleela 66991212 Inorbit 26002177 Center One 39112222 Power Supply MSEDC Call centre 18002333435 Airoli MSEDC Office 27691584 Belapur 27571438 Koparkhairane 27545566 Nerul 27701930 Vashi 27825970
Police Airoli Police Station 27692455 CBD Police Station 27580255 CBD Control room 27574928 Kalamboli 27421600 Koparkhairane 27545570 Kharghar 27742500 Nerul Police Station 27702468 Vashi Police Station 27820346 Vashi Rly Station 27812696
Supermarkets Apna Bazar 27892990 D Mart, K’hairane 27548080 D Mart, Nerul 27700154 Food Bazaar 27812616
Schools Fr Agnel’s School 27660705 Sanjeevani Intl 22918170 Sacred Heart 27821321 Anchorwala Vidyalaya 27808899 St Lawrence School 27662775 St Mary’s School 27662725 Apeejay School Kharghar 27745501 DAV Public School, Nerul 27714017 Greenfinger School 32800407 Delhi Public School 27580541 MNR School, Kamothe 65272333 St Xavier’s, Nerul 27707519 Bal Bharati 27741641 Harmony Intl School 27745000 Tilak Public School 27711481 New Horizon School 27461567/68 Jaipuriar School 64505430 DAV Public School, New Panvel 27451793 Fr. Agnel’s School Marathi Medium 41613000 English Medium 41612000 St Andrews School, Sukhapur 65359699 MES Vidya Mandir, Belapur 27520629, 32994316
Theatres & Auditoriums Big Cinemas 39894040 Cinemax 26841616 Meghraj 27827070 Fun Square 27617325 Vishnudas Bhave 2766787l9
With the real estate market facing severe stresses in the current scenario, small, regional builders are in much better shape than the established, national level builders like DLF, UNITECH, Indiabullls, Shobha, Godrej etc. Small players like Thakkers developers (Nashik), Vijay Shanti (Chennai), Ganesh housing (ahmedabad), Kolte patil (pune and bangalore) and Oberoi realty are in much better shape and have better balance sheets to show. While most of the big players were spreading their operations nationally,these small players were only playing in their area of expertise. Whereas DLF realty has a debt of 22700 crore, Oberoi Realty has zero debt in its books. Behind Metals, Real estate stocks have been the worst performers in the past year. Real estate all over the world is a very localized business, with only the brave venturing out of their territory. This fact has been proven once again. Amongst the smaller players, Ganesh housing and D.S.Kulkarni have the highest debt on their books at 1.6 and 1.4 times their net sales.
In a major breakthrough for the conveyance problem of housing societies, the govt has now stepped in and made it clear that any builder who refuses to give conveyance to the flat buyers or co-op housing societies within 4 months of handover of flats to the buyers, the local deputy registrars office will give a deemed conveyance certificate automatically after being approached by the flat buyers.
This will bring to end the long and sordid chapter in Indian housing. Builders use the conveyance ploy to avoid handover of land and building to housing societies and continue to fleece buyers in the name of NOC. After being approached by flat buyers, the deputy registrar will call the builder and flat purchasers/societies. If it is found that the conveyance has not been given even after 4 months of handover of flats, the registrar will issue a deemed conveyance certificate.
Let us hope that this scheme is not just on paper but actually implemented in true spirit.
Remember : A builder is supposed to form a society at his expense as soon as 60% flats are sold…and is supposed to finish the conveyance to the society at his expense within 4 months of formation of the society. THIS IS THE LAW !! If the society needs conveyance in a hurry, it can obtain the conveyance at its own expense after sending notice to builder that they are proceeding with deemed conveyance but will take him to court after that and make him liable to reimburse them later, including the court and advocate charges. Note : To file such a case and claim all the expenses, you must maintain proper receipts and accounts of the money you spend cause court will see all this before awarding compensation to society. Judge will award compensation considering all circumstances and what he considers \’ reasonable\’. If you hire a top shot lawyer who charges thousands of rupees per appearance, court is not going to compensate you for that. It will only award what it considers reasonable.
-Mayur (Sky Properties)
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The chief minister, Mr.Chauhan, on friday cleared the proposal to hike FSI (floor space index) of Koliwadas of Mumbai to 2 from 1.
This is on similar lines to the FSI in Gaothan areas. However, unlike Gaothan areas, Koliwadas have not been mapped and hence a mapping drive will also be undertaken. The Survey will be carried out over a period of 3 months. Following which a clear demarcation of Koliwadas will be available with the Govt. This will be applicable to Koliwadas within the city limits initially. With an FSI of 2, the gross area of the constructed building will be twice the area of the plot it stands on. However, some sections of the Koli community were skeptical of getting any benefit as most of the houses in Koliwadas have already violated the 1 fsi and are, in some cases, up to 3.It may be worth pointing out that most SRA projects get an FSI of 3. At the most the new regulations will help regularize the violations, felt most people.
Splitting of familyrun real estate businesses appears to be a growing phenomenon . The three low-profile brothers of the Rs 3,000-crore Sheth Developers Pvt Ltd (SDPL) have reportedly split and the separation is said to have been amicable.
Industry sources said the parting was a result of differences in business vision of the three brothers-Ashwin , Vallabh and Jitendra Sheth.
While Ashwin, managing director of SDPL, and Vallabh , director, denied the split, they confirmed the setting up of two firms. They said it will not affect the firm\’s existing projects. \”We are jointly completing all the projects at hand and only acquiring new projects separately,\” they said in separate communications. Jitendra, too, is a director in the firm.
This is how the business has been reportedly bifurcated . SDPL, the parent company where the brothers hold 33% stake each, will continue to exist till the ongoing projects are complete. The brothers have set up two realty firms, which will bid for new projects and land acquisitions separately.
Ashwin, eldest of the three, has set up Seth Corp, which he will operate jointly with son Chintan. He has an office in Vile Parle. Ashwin\’s brothers, Vallabh and Jitendra , have set up Sheth Ventures , and they currently operate from Kandivli.
In SDPL, the roles of the brothers, who hail from Saurashtra in Gujarat, were clearly etched. Ashwin focused on land acquisitions, Jitendra on finance and marketing, and Vallabh, youngest of the three, on construction aspects.
Industry insiders said the first cracks appeared in 2009 following the global recession and property market slump. The firm is believed to have lost \”a good amount of money \” in Dubai where the company had launched five residential and commercial projects worth $545 million (Rs 2,545 crore). \”When the huge returns did not materialize, the blame-game began. That\’s when the brothers thought it was time they separated,\’\’ said an industry source.
Private equity firms say SDPL claims to have assets in the form of huge prime land such as the erstwhile Borosil Glassworks property at Andheri , Voltas land at Thane and Cynergy building at Prabhadevi . Industry insiders said the company has sold a majority of its projects such as Beaumonde at Prabhadevia and Polaris at Goregaon West.
Ashwin entered the real estate sector as a broker. In the late 1980s, he constructed a small single building in Kandivli and soon spread out to other suburbs.
The brothers got involved in the business and their first big break came in 1997, when they set up Vasant Nagri, a 1.15 million-sq-ft township in Vasai. Most of their funds came from investments by Vaishnav trusts and high net worth individuals.
Anatomy of a split
Rs 3,000-crore Sheth Developers Pvt Ltd (SDPL) will continue to exist till ongoing projects are complete All three brothers hold an equal 33% stake in SDPL The three have set up two realty firms, which will bid for projects and land acquisition separately Ashwin Sheth, the eldest brother, has set up Seth Corp which he will operate jointly with son Chintan Vallabh and Jitendra have set up Sheth Ventures
Grim Realty: Some Other \’Disputes\’
Hiranandani tussle
At the heart of the dispute are allegations of violations in a business association agreement signed between Niranjan Hiranandani and daughter Priya Vandrevala in 2006. They floated a company, Hirco, in London and launched its subsidiary, Hirco Developments, to develop townships in India. In 2009, Priya alleged that new acquisitions were not translating into profits for her. The case is under arbitration.
Raheja denies differences
The patriarch of Mumbai\’s real estate industry, G L Raheja, is reportedly facing differences over the division of the family\’s substantial wealth. Son Sandeep is said to have voiced his discontent over the business division allegedly tilted in favour of his sisters – Sabita R Narang and Sonali Arora. Sandeep, an architect and also MD of K Raheja Constructions, though denied any differences with his father. \”It\’s a false propaganda,\’\’ said Sandeep.
Maharashtra Housing and Area Development Authority (Mhada) officials and private contractors are hand-in-glove in a Rs100-crore scam concerning repairing tenders of cessed buildings, a Right to Information Act (RTI) query has revealed. Contractors try to grab the tenders by quoting prices as less as 80% to 90% below the estimated cost of repair.
However, once they get the contract, they recover the deficit — difference between the estimated repair cost and the price they have quoted — by submitting an ‘extras’ bill. They also include their profit in the bills. DNA is in possession of 68 documents which highlight the modus operandi of contractors and Mhada officials.
For example, if a contractor quotes Rs1 lakh to repair a building against its estimated cost of Rs10 lakh, he later submits bills over and above Rs9 lakh to recover the amount with the help of Mhada officials. He may or may not complete the repair work, but ensures he gets a hefty sum with some profit for Mhada officials too.
Mhada repaired a cessed building in Bhuleshwar for which the architect and engineer estimated the repairing cost to be Rs4.98 lakh. A private contractor bagged the tender by quoting Rs94,732 — 81% below the estimated repair cost. In another case, a contractor was allotted the contract after he quoted a price 90% less than the estimated cost. The lowest bidder always bags the contract.
“The contractors later recover the deficit amount and earn profit by submitting the ‘extras’ bill to Mhada. The bills are cleared by Mhada officials as their palms are greased by contractors too,” alleged Salim Shaikh, social activist and vice-president of NGO Together For Empowerment & Active Monitoring which got the documents under RTI.
Mhada deputy chief engineer (repairing cell) Arvind Dhole refused to comment. However, state housing minister Sachin Ahir said if the contract is allotted at a price 80% to 90% less than the estimated cost, it is gross violation. “In such cases, Mhada must float the tenders again. I will take note of this and ensure appropriate action is taken,” he said.
The 68 documents show that almost all work is given to the bidder who quotes an amount far lesser than the estimated repair cost. “If the estimated cost is Rs10 lakh, the contractor says the work will be done in Rs1 lakh. How is it possible? It is because of extras,” said Shaikh. “Even the genuine contractor who misses out on the contract does not raise an objection because there is a cartel. If contractor ‘A’ gets work this time, next time contractor ‘B’ is accommodated. It is their modus operandi,” said activist Tabrez Patel.
Apart from the ‘extras’ bills, contractors also unofficially force tenants to shell out money. “No one bothers to give them a receipt. It is a racket which runs into Rs100 crore. If there is shortage of funds, money is diverted from the MLA and MP fund. So, the amount is distributed among contractors, elected representatives and Mhada officials. Many dilapidated buildings are repaired only on paper,” said RTI activist Anil Galgali. “We have no option, but to keep paying Mhada officials and elected representatives. There is corruption at every level of the administration,” a contractor said.
The Mumbai region – including Mumbai, Thane and parts of Raigad – can look forward to a substantial increase in the amount of mangroves if a proposal by the state forest department sees the light of day. The forest department is proposing a conservation project that promises to double the amount of mangroves across six districts in the state over a decade. Three of these districts-Mumbai , suburban Mumbai and Thane-fall in the Mumbai Metropolitan Region (MMR), while parts of Raigad are also part of the MMR.
Forest officials said mangrove regeneration would be conducted in Mumbai in the Gorai region, while Navi Mumbai would see similar projects in Vashi, Koparkhairne and Ghansoli. Other regeneration plans would be in Vasai, Diva and Mumbra in Thane district . Mangroves are important buffers between land and sea, checking coastal erosion and helping flood control.
The overall plan of the forest department seeks to double the state’s 186 sq km (18,600 hectares) of mangrove cover in a decade. This cover is spread along the state’s coast in Sindhudurg and Ratnagiri districts and the four districts in and around Mumbai. The state government’s mangrove cell expects to double the amount of mangroves by nurturing mudflats. “We are taking the help of the M S Swaminathan Research Foundation. A major aim would be to revive mangroves in areas where they earlier existed ,” said Praveen Pardeshi, secretary of the state forest department.
Mangroves along palm beach Road, Navi Mumbai
The planners said the project would focus on mudflats along the coast that don’t have mangroves, but can support them. This would include areas where mangroves were earlier destroyed. “With minimal intervention from our side we can facilitate the inflow of water , and many of these mudflats, which harbored mangroves in the past, can be restored to their original state. Coupled with such a revival, we would also plant fresh mangroves,” said N Vasudevan , chief conservator of forests and head of the mangrove cell.
Till recently, the forest department played practically no role in mangrove conservation, but a landmark order from the Bombay High Court in 2005 changed this. The mangrove revival plan is an offshoot of this order. The judgment mandated that mangroves on government land be declared as ‘protected forests’ and those on private lands as ‘forests’ . As part of this process, 5,469 hectares (54.69 sq km) of mangroves have been already notified as protected forests. Most of the mangroves in Mumbai and Thane districts have been notified, said an official in the environment department. This would lead to about 250 sq km of land, lining 720 km of coast, coming directly or indirectly under the forest department. An examination of mudflats is being carried out to see which areas qualify for regeneration . Once more areas are notified, more mudflats would be available .
“Mangroves on government land are being handed over to the forest department as compact parcels, with large stretches of mudflats in the area,” said Vasudevan. He added, “It does not mean that all mudflats originally had mangroves . We have to first identify those mudflats that did and start the revival there. We are being very careful not to replace one eco-system with another.” Environmentalist Debi Goenka said that instead of regenerating mangroves on mudflats, the state should revive them where illegal reclamation has been done. “The new Coastal Regulation Zone rules show mudflats as having separate CRZ-1 status. Mudflats and mangroves have different eco-systems . The state should first stop destruction of existing mangroves,” he said. Hugging the coast
The State of Forests Report (2011), published in January 2012 by the Forest Survey of India (FSI), assesses the state\’s mangrove cover as 186 sq km, including mangroves standing on private as well as public land.
A section of Mumbai\’s developers, hit hard by the tough new building rules, will heave a sigh of relief when municipal commissioner Subodh Kumar retires this month-end. They are hoping for a pliable and lenient successor, who will listen to their woes.
The amended Development Control Rules (DCR) approved by the state government last January drastically reduced profit margins of unscrupulous builders, who misused building concessions offered to them by successive municipal commissioners.
New rules plugged loopholes and left no scope for manipulation. The BMC has now been empowered to levy a hefty premium on builders, who want to utilize 35% extra area for residential projects and 20% for commercial projects. “They have been biding their time and are not submitting their building plans till the commissioner retires,” said sources in the industry.
A prominent builder who sold more than 100 flats in his Kalina project even before work commenced is one of those believed to be badly hit because of the new DCR. “Flat purchasers have been chasing him since the past one year and he has posted musclemen at his office to keep them out,” said sources. This developer is hopeful of getting the building plans sanctioned after Kumar leaves.
Civic officials said it would be very difficult to manipulate the new rules in favor of any builder even if the BMC got an “amenable” commissioner. “No civic chief can tinker with the rules as they are now cast in stone,” they said.
Most builders find Kumar brusque, adamant and someone who refuses to budge from his position. Two weeks ago, he told builders that “any change unsettles everyone initially”. Kumar, who crafted the new policy, gently chided architects for their “creative designs” which led to major manipulations in the past.
Initial confusion over the implementation of the new policy had builders bitterly complaining that project files were stuck and junior-level officials were unable to decide on them. But the BMC said as many as 32 building proposals have been cleared since the new rules came into force.
Officials said the building approvals process has been streamlined and files are being cleared at a much faster rate. They said that once the project file is dispatched from the zonal office to the municipal commissioner, it takes barely 10 days for the final approval.
Last month, Mayfair Housing paid a premium of Rs 2.78 crore to the BMC and became the first developer in Mumbai to get its plans approved under the modified regulation for its project, Mayfair Kumkum, at SV Road, Andheri (W).
But real estate industry sources said that the 32 projects approved were all old proposals which were sent back to the drawing board by the BMC after the new policy was announced by the state government last January.
“Virtually no new proposal has been submitted to the BMC. The ones approved were old building plans redesigned as per the new policy,” said a leading architect.
Sky properties is a company whose name and reputation is synonymous with extraordinary levels of real estate service and expertise. Sky properties is all about working with you to obtain the very best outcome for clientele. As a select group of dedicated property experts we understand the business end and the emotion of selling or buying a home. We work in a team environment to understand our clients\’ needs and expectations, resulting in success for you – our valued client.
Our success is driven by our people and their unrelenting focus on delivering outstanding results for our clients. This is achieved by operating responsibly, executing with excellence, valuing and working closely in partnership with our clients, applying innovative and effective marketing strategies, embracing the latest global technology solutions and, by long ago, recognizing the desirability of living in Navi Mumbai by the discerning client.
Our insight and understanding of the property market has established a platform from which the Sky properties brand is ideally positioned to carry its unique methods forward as we constantly evaluate and plan for the future.
WHAT WE DO
Sky properties is a specialized, high end seller of property. Our employees work closely with both buyers and sellers of exclusive properties. It may be on Palm Beach sea facing home, a stylish home, lifestyle property, a favorably located apartment,a 1 bhk apartment or a prized piece of land. Our people will listen and then consult with you on the most effective way to buy or sell your property. We take great responsibility and pride in the selling of your home and this is as important to us as it is to you. We want to help you to make the right decisions following an informed process and we value strong client connections based on trust, honesty and respect.
The success of Sky properties has seen us sell many of Navi Mumbai\’s highest priced homes and naturally we are proud of the many achievements and accolades that we have received over the years. In challenging market conditions we have signaled that our people understand all market conditions and we have proved ourselves to be adaptable and highly skillful at selling properties in all price ranges.
OUR UNIQUENESS AND VALUES
We are highly experienced and constantly strive to provide unparalleled, personalized service for all clients. Our Team environment is dedicated to achieving extraordinary results by valuing Integrity, professionalism, property expertise, and ensuring that we optimize our performance through comprehensive market and local knowledge leading to outstanding results. Our passion for a successful outcome is borne out of a genuine desire to help you to be where you want to be.
We are focused on developing the best strategy for success by bringing together our market knowledge, experience, unwavering service and support and being committed to being comprehensive and proactive in helping clients reach their goals. At Sky properties we employ the highest levels of standards to assist you.
OUR GLOBAL REACH
With the consistent promotion of properties under the Sky properties portfolio in a variety of targeted media and the brand strength, content and usability of our website, we are widely recognized as a property company that generates continual enquiry from not only local and national buyers but we also consistently capture buyers from around the world.
OUR HISTORY
Our company was founded in 1994 as a small real estate consultancy selling quality real estate in Nerul, Navi Mumbai. In 1995, the vision of Sky properties began to take shape with the company soon expanding its role as high end sellers of property resulting in considerable success not only in Nerul but also the entire Navi Mumbai. Sky properties opened its first office in 1995 which was followed recently by the permanent office in the Nerul railway station complex,allowing us to be easily accessible to our clients.We have deliberately resisted expanding via the franchisee route as real estate is a highly personalised profession where a dilution of quality and control is a recipe for disaster.
The following advice from our founders has been our guiding light since inception–
If you succeed in fooling someone,dont think that the other person is a fool……realise that the other person trusted you much more than you deserved.
We thrive on trust.
OUR FUTURE TOGETHER
As a successful company we constantly evaluate market trends and achieving the best result for you. We will ensure that you are kept fully informed each step of the way and we will work in partnership with you to attain the very best outcome.
Sky properties\’ success is founded on each and every one of the team valuing a commitment to excellence, expertise, determination and the highest levels of service resulting in the satisfaction of us knowing that we have helped you achieve your goal.
We look forward to working with you and we thank you for entrusting Sky properties.
The interest rates on home loans have started indicating a downward trend as the Reserve Bank of India (RBI) cut its cash reserve ratio (CRR) last month. The cut in the CRR means more liquidity available for banks, and thus they will be more aggressive with their lending schemes.
This trend has been visible in the strategies of banks. Many banks have announced interest rate cuts on their new home loan schemes.
Outlook on interest rates
Interest rates follow a cyclical pattern over a long term. They were at low levels during 2007-08 and then went up due to a higher inflation rate prevailing, and consequent tightening in the monetary policy by the RBI in 2010-11.
Now, the inflation rate is showing signs of cooling down and the RBI has started softening its monetary policy stance. Analysts believe the interest rates will come down in the near to medium terms.
Lower rates for borrowers
Most banks have not reduced their interest rates for existing home loan accounts, citing the reason that the cost of funds have not yet come down. However, analysts believe the RBI is softening its monetary policy stance and therefore an interest rate cut in the near future is possible. This will, in turn, result in lower interest rates for existing borrowers as well.
Banks have already started offering attractive interest rate schemes for new borrowers. Analysts believe with signs of softening in key interest rates, there will be a further drop in interest rates on new home loans in the near future.
Investors can also explore the possibility of a lower upfront processing and other fees while applying for a home loan.
Floating or fixed rate loan?
In general, there are two types of schemes. In the fixed interest rate scheme, the interest rate remains fixed for a certain duration. On the other hand, it keeps changing in line with the market conditions in a floating interest rate scheme.
Since the interest rates are indicating a downward trend, you should opt for the floating rate scheme. You can also go for a scheme that offers a partly fixed and partly floating rate, or a fixed interest rate that also provides an option to lock-in at lower rate in future by paying a conversion fee to the bank.
Here are some points you should keep in mind while going in for a home loan:
Factor in volatility
First of all, it is important to draw up your financial plan keeping in mind volatility and cyclical nature of home loan interest rates. You should expect higher interest rates during certain periods of your home loan tenure.
Manageable EMI
Home loan interest rates have become cyclical with a probability of them going higher than what was available at the time of the loan disbursement. Therefore, it is ideal to ensure the EMI is not more than one-third your monthly take-home income.
Choosing the lender
It is important to choose your bank carefully. It is your long term companion, and at times, it is not so easy to change the bank. It will also entail an additional cost to change your bank. Since the home loan is a long-term commitment, it is important to be selective about the bank.
It is helpful to get some feedback from other borrowers about their experience with the bank. You should be aware of the positives and negatives.
Savings plan
It is advisable to make some plans for savings after taking into account the EMI payments and regular monthly expenses. This accumulated fund can be used for part prepayments on the loan to reduce the EMI burden in high interest rate phases.
From : The Times of India
Sky Properties, Nerul, Navi Mumbai
Address A-1, 7,2, Sneh Co Op Society, Plot no 16, Sector 19a, Nerul, Navi Mumbai 400706 Call Us 9987452642 mayur@navimumbaiestate.in
Flat buyers are often kept in the dark about the property taxes due on their plot/flat at the time of possession. Only later do they realize that they have been shortchanged by the builder/developer when they are slapped Property Tax Due Certificate by the Municipal Corporation, which sometimes can be to the tune of a few lakhs! It helps to remember that until the possession of the flat is handed over to the flat buyer, all taxes due on the flat/plot,are payable by whoever owns the flat/plot, which in most cases is the builder/developer. Often with the connivance of the Municipal corporations, the builder escaped payment of this tax. The Municipal corporation, which can easily make it mandatory for the builders to pay all liable taxes before handing over the Occupancy Certificate for the flat/building, happily chose to look the other way. All this is set to change if the Minister for Urban Development, Mr.Bhaskar Jadhav, is to be believed. According to the new rules proposed by the Minister..
Builders will have to pay property tax for 3 years at the time of issuance of the Commencement Certificate and if the construction is not complete at the end of 3 years, he will be liable to pay property tax for the next 3 years !
Recently, the Municipal corporation had issued notices for payment of pending property tax to more than 3.22 lakh flat owners across the city. After the opposition leader in the legislative assembly, Mr.Eknath Khadse, took up the issue, the govt changed its tune to revoke the property tax due certificate for recently completed buildings where Occupancy certificate has been issued recently but property tax has not yet been paid by the builder.
As an icing on the cake, the minister informed the house that Govt agencies like the MMRDA, SRA, Mhada along with the private builders, owed more than 10,000 crores in property tax !!
Just how and when these ideal solutions are implemented is anybody’s guess.
Case A: Where the Party outrightly purchases Flat /Home from CIDCO in buildings made by CIDCO eg.Millenium tower,Spaghetti,NRI complex.
Allotment letter from CIDCO
Agreement to Sale with CIDCO
Deed of Apartment with CIDCO
Possession letter from CIDCO
NOC from CIDCO
No Valuation Report required.(Plus point)
Receipt of payments made to CIDCO.
No Title Clearance/Search Report needed (Plus point)
Case B : Where CIDCO has given Land to individuals and the individual constructs the House. This is applicable only to a house on an independent plot. The house should already be constructed.
Agreement to lease (with blank copy of lease deed format) between CIDCO & applicant.
Blue print of building plan approved by CIDCO or NMMC (depending on who is in charge of that area)
NOC from CIDCO for taking loan for purchase of the property.
Architect\’s detailed estimate for Construction of house.
Development Agreement.(In case the plot is owned by one person and the building is made by another/builder)
In case of Construction of Common Walls : Proof of allotment of Plots to adjoining Plot holders and their NOCs for construction of common walls by the applicant.
Affidavit of not letting the House partially or wholly.
CIDCO or NMMC commencement Certificate for construction.
Case C : Where CIDCO has given Land on lease to builders (TENDER PLOTS) (This is the most common scenario,when you purchase from Builder who has got the plot via tender.This can be verified by checking the documents with the builder)
Agreement to lease (with blank form of lease deed attached) between CIDCO and builders.
Commencement letter for construction i.e. Sanction letter from NMMC town planning/building proposal dept.
NOC from CIDCO & Builders for mortgaging property to a bank (when you take loan for purchasing a property/flat)…since all land in Navi Mumbai belongs to CIDCO.They only give land on long lease.
Registered agreement for sale between builders and flat purchaser alongwith Registration receipt of the agreement.
Receipts of payments made to builders.He has to provide you this for every payment made to him before,during and after purchase.
NOC from builders in prescribed format.
Blue print of architect\’s plan with sanction/approval from NMMC building proposal dept.The stamp is on the blueprint itself.Normall on top right corner.
Case D : Where CIDCO has given directly to Society (This is what the Wadhwa scam on Palm beach was all about.) He had taken land sanctioned for Mathadi workers and converted adjacent plots into one big plot.The case had gone to the supreme court and construction is on now.It happens only in India)
Agreement to lease between CIDCO & Society (alongwith blank form of lease deed).
Blue Print of building Plan approved by CIDCO authorities.
Commencement certificate issued by NMMC(building proposal dept) or CIDCO,depending on whose jurisdiction the area falls under.Normally,areas after belapur i.e.Kharghar,Ulwe,Kamothe,khandeshwar etc,fall under CIDCO jurisdiction.Areas from Vashi to Belapur fall under NMMC now.Earlier these areas also fell under CIDCO jurisdiction.
Society\’s registration certificate.
List of Society members approved by CIDCO.
NOC from CIDCO & Society for mortgaging property to any bank.This happens if you take a loan for purchasing property.
Allotment letter issued by Society to the flat purchaser.
Share Certificate.
Additional Requirement if Society assigns development rights to developers / builder.
Development agreement between Society and Builder
Power of attorney from Society and Builder.
Partnership deed of builder\’s firm (If its a partnership firm)
NOC from builder for mortgaging property to any bank.
Registered agreement for sale between builders & applicant with Registration Receipt thereof.
Case E : Resale of CIDCO flat (Flat purchased directly from CIDCO) by one person to another
Original Sale Agreement between CIDCO and Seller
Original deed of apartment between CIDCO & seller.
Allottment letter issued by CIDCO
Possession letter issued by CIDCO to Seller
Registered agreement for sale between seller and buyer with Registration Receipt
NOC from CIDCO for transfer of vendor\’s rights in favour of applicant and for mortgaging property to any bank.
NOC from Association of Apartment Owners (if it exists). For Newly constructed CIDCO Complexes like Swapnapoorti etc, you will need to submit an affidavit since no society is currently formed. Forming a Society is CIDCO\’s responsibility and Conveyance after that is also CIDCO\’s responsibility.
Case F : Where Flat/House constructed on freehold land
Latest 7/12 Extract with N.A. permission/City Survey extract.
Agreement for purchases of land, if any.
Title Certificate & Search Report for 15 years.
Development agreement between Land owners & developers.
Partnership deed of developers wherever necessary.
Agreement for sale between Developers/Land owners and applicant duly registered with Registration from Receipt thereof.
NOC from builders.
Blue print of building plan approved by competent authority
Sanction Letter.
Cidco Transfer + Mortgage NOC + Final Order
Services include documentation and legal paperwork, affidavits, bonds, stamp paper, notary, application and follow-up with CIDCO offices in Navi Mumbai. Time Taken: Approx. 1 month
Rs 20,000
Legal Documentation Only
Services include legal documentation for property/plot sale and purchase. Data entry on govt website. Payment of stamp duty and registration charges online. Assistance at the registration office till the work is finished and registered documents are handed back to the client. Time Taken: Approx. 3 days.
Rs 5,000
Sky Properties, Nerul, Navi Mumbai
Address A-1, 7,2, Sneh Co Op Society, Plot no 16, Sector 19a, Nerul, Navi Mumbai 400706 Call Us 9987452642 mayur@navimumbaiestate.in
Just when the Navi Mumbai real estate market seemed set to take-off and builders were ‘factoring in’ the Airport into prices of flats in the vicinity of the airport due to the green signal of the Environment ministry, comes another bombshell sure to make people wonder whether this project will ever see the light of day.
In early March 2012,Debi Goenka, of the Environment Action Trust, filed a complaint with the Chief conservator of Forests (Thane region) and he complained about it to Union environment secretary Tishya Chatterjee, asking the ministry to revoke the green clearance.
Goenka alleged that CIDCO officials had hidden the fact that:-
The Land earmarked for the airport contained 321 acres of reserved forest area.(Reserved forest land cannot be destroyed to develop the land in any way).
The Airport boundary wall is less than 10 kilometers from the Karnala bird sanctuary.(According to the Environment protection act, an airport cannot come up less than 10 kilometers from a wildlife sanctuary).
This was verified personally by Debi Goenka along with CIDCO officials. Later, the Chief conservator of forests conducted his own survey and found the allegations true. The distance was found to be less than 10 kms and the land revenue records showed that 321 acres were indeed Reserved forest Land.
Subsequently, the Chief conservator of forests, Mr.Pol, withdrew the permission saying “We have conveyed our objections to the principal secretary and the Navi Mumbai authority (CIDCO) will have to seek fresh permission from both the state wildlife advisory board and the central wildlife advisory board,” said Pol.
Apart from these major hurdles, the proposed airport is also facing a land acquisition problem. It requires 2,042 hectares of land from which 1,405 hectares is already with CIDCO, but 485 hectares of land is privately-owned. These private parties are demanding much larger compensation packages, thereby forcing infrastructure companies, including Larsen & Toubro, to question the viability of the entire project. Environmentalists are also putting pressure on the MoEF highlighting the ecological havoc the project will cause since it involves the diversion of two rivers, the Gadh and Ulwe and the decimating of 400 acres of mangrove forests.
In the light of these ‘new’ developments, the actual construction work is unlikely to start before 2014,provided the green signal comes from the Ministry of Environment and forests as early as possible.
The tendering process is yet to begin and once the winning bidder bags the project, it will take another six to eight months for the feasibility studies. CIDCO, which was to commence the levelling and filling of the land before construction, now has to wait for these clearances from the ministry of environment and forests (MoEF) In light of these developments, it is anybody’s guess when or if the airport will ever come up here.
In the meanwhile, investors and flat purchasers wait with baited breath for the final decision of the ministry.
All images sourced from the internet and belong to the respective copyright owners.
Until now, the purchase and sale of real estate in Navi Mumbai and the rest of Maharashtra was governed by something called the MOFA (Maharashtra ownership of flats act) enacted in 1963. Just like laws in other states. But on 11th April, 2012, the Maharashtra govt introduced a new law to govern all real estate transactions in Maharashtra. Called the Maharashtra Housing Regulation and Development bill, this bill seeks to remove the lacunae in the previous law (MOFA),and seeks to finally give flat purchasers an upper hand when dealing with builders and real estate companies. It seeks to establish a Housing Regulatory Authority (HRA) and a Housing appellate tribunal to ensure the proper implementation of the law.
The law seeks to end the countless hazards and scams facing the real estate buyer today like:
False commitments on delivery
Shoddy construction quality
False promises in terms of area, facilities, amenities, fsi etc
Utilization of funds obtained from buyers in a particular project for accumulating land parcels rather than in construction of the said building
It seeks to do this via imposition of fines ranging from Rs 1000 to Rs 1 crore. The punishment for not registering a project with the HRA will cost the developer Rs 1000 a day, until its registered. No builder will be allowed to market a project unless he registers it after HRA approval. The approved plans will then be available on the HRA website for the general public to scrutinize. This will end the usual practice of building more than the approved plans and hence inviting problems for the end buyer at a later stage, wherein the building is not granted the occupancy certificate and in some cases, the demolition of the violation. If the developer does not deliver as per the amenities and facilities promised, the fine can go upto Rs 50 lakhs. This will take care of the other favorite tactic of the builder, wherein glitzy brochures promise a heaven on earth but the end result is far from it. Minister of Housing, Mr.Sachin Ahir, has promised that the law will curb the loopholes in the current law.
It helps to remember that the current law (MOFA) does contain provisions to curb malpractices by builders by imposing penalties on builders violating its conditions. eg. the MOFA specifies the exact format of a sale agreement of a flat clause-by-clause and also specifies the fines and damages to be paid for not delivering on time. But since most of these measures come into action after the violation has happened, the law does nothing to prevent the commitment of the offense and results in endless court battles, which can take years to conclude.
Although, its a good, although belated, step by the govt, it does contain certain loopholes and grey areas as below:-
It does not cover govt housing agencies like Mhada and MMRDA.
A criminal offense cannot be registered against the builder. This is contrary to the housing bill planned by the central govt.
It does not deal with commercial and industrial property
In case of non-completion of a project, the builder has to pay back the amount taken along with a 15% interest. This is an abysmally low rate of interest as the builders normally borrow funds from the market at rates far exceeding 30%-50%.In such a scenario, builders will find it convenient to \’fund\’ their projects at 15% by taking money from flat buyers and then deliberately delay the completion so that the buyers cancel their bookings and take their money back along with the 15% interest.
Although the chief minister deserves credit for coming up with this law,unless these issues are tackled aggressively, the loopholes will continue to be exploited.
On January 18, 2000, Citibank approved Mahendra Mehta\’s home loan of Rs 2.23 lakh. The loan was granted at an interest rate of 14.6% and the monthly installment was Rs 4,241. It was to be repaid over a 21-month period and Mehta submitted the requisite documents to the bank. According to Mehta, he paid all the installments on time. However, the bank sought an additional three months\’ installments amounting to Rs 12,723. He paid the amount.
Mehta alleged that on March 22, 2007, he received a notice from the bank stating that he still had to pay back Rs 30,000. On April 2, 2007, Mehta sent the bank his reply and said there was no such outstanding amount on the loan. He also sent the bank an email and sought a refund of the excess amount of Rs 12,723, along with interest. The bank did not return the amount. In June 2007, the bank sent Mehta another letter, stating that the monthly installment was Rs 4,366 and not Rs 4,241 and hence, he had to pay an additional Rs 30,000. Mehta then sent the bank a notice through his lawyer and said that he would not pay this amount and once again, sought a refund of the three extra installments paid.
On March 3, 2008, Mehta filed a complaint in the forum. The bank filed its reply and said that since the RBI had hiked loan rates, Mehta\’s monthly installment was also increased. It argued that Mehta had availed a floating interest loan and not one on fixed interest and hence there was a change in the interest rate. With respect to Rs 12,723, the bank said that the installments of January 2002, July 2002 and August 2002 were not paid.
The forum said the loan approval order proved that the interest on the loan was 14.6% and the installment was Rs 4,241 and there was no mention of floating interest in the order. This established the bank\’s version as false and dishonest. The forum stated that had the loan approval order mentioned floating interest between 2002 to 2007, the bank would have changed interest rates and not accepted just Rs 4,241 from Mehta.
The forum held the bank guilty of deficiency in service.
In most cases, the flats purchased in Navi Mumbai, are built by builders on something called 12.5% Gaothan expansion scheme and (also called ‘ साडे बारह टक्का ‘ plot).In this case the land was initially allotted by CIDCO to a local villager (gaonwalla),in exchange for his farmland, which CIDCO took over. The exact beneficiary of this scheme is decided by land revenue documents and a document called 7/12 (saat baaraah).These are available with the village Talati, Tehsildar, Patwari, Collector etc.
Basically the ratio of this acquisition was 12.5%,which means that if the villager owned 100 sq meters of farmland,he was allotted 12 meters of land,on which he was free to do construction activity or sell it for a profit.
In such cases,the documents required are…..
Award Copy
A type of letter issued by CIDCO,specifying the Name of the villager to whom CIDCO has decided to give 12.5% of the land acquired by it.It is proof that the villager is entitled to a parcel of land from CIDCO. Till this stage, the place and exact spot of allotment is not known to the villager. The only thing he knows is that he will be allotted a specified area of land.
Letter of Intent
Once CIDCO is ready to allot the piece of land to the villager holding the award copy,it issues a letter of Intent to the villager telling him the same.He is then shown the exact plot that he will be allotted and his approval obtained via a signature.
Letter of Allotment
Once all the approvals of the villager are obtained, a letter of allotment is issued which specifies the villager’s name and exact demarcation of his plot.
Lease Agreement
Since CIDCO does not sell any plots (it only gives plots on long term 60 yr lease),it signs a Lease agreement with the villager which specifies the exact terms of the lease.It includes the time limit for constructing the structure, the fines and penalties imposed in case of any violations of the time schedule, transfer charges to be paid to CIDCO and approval of CIDCO incase any new title or interest is created in the property etc.
Transfer charges
After the lease agreement is signed by the villager, he pays the CIDCO transfer charges and other CIDCO charges.
Final Order (First)
Once all the stipulations of the Lease agreement are complied with a Final Order (a type of a letter on CIDCO letterhead) is issued to the Villager which clearly and conclusively gives the rights,title and interest to him.
Tripartite Agreement
This is a type of agreement by which the villager transfers his rights, title and interest on the land to a third party, namely, the builder/developer/construction company. This could be done for various reasons including lack of funds, expertise etc. Transfer charges are paid to CIDCO and CIDCO now admits the builder/developer/construction company in its records as the owner of the land.
Lease Agreement (with builder)
Once again, CIDCO signs the Lease Agreement with builder, which binds the builder to the terms and conditions set by cidco for development of the plot and construction on it. It states all the details like the time for construction, penalties etc.
Final Order (Second)
Its a letter issued by CIDCO stating conclusively that the rights title and interest of the said plot now belong to the builder and not the villager.
Once these documents are in place, the builder takes over and starts the procedures to construct the building. This involves getting permissions from various agencies like CIDCO and NMMC, Fire dept etc. After completion, the builder/developer obtains the Occupancy Certificate. Only after obtaining the Occupancy Certificate only can the builder sign the lease deed with CIDCO.
Final order after Lease Deed
This is the semi-final document that is signed between builder and CIDCO which prove that the builder has followed everything stated in the Lease agreement and has completed and complied with all the conditions in that Lease Agreement. It is signed after the Occupancy Certificate is obtained by the builder.
Final Order (Third)
After the Lease Deed Another ‘Final Order’ is issued to the builder by CIDCO stating that his name is now registered as the lease holder of the plot.
Final Order (After Society Formation and conveyance deed with CIDCO)
After the builder sells 60% of the flats to buyers, he is supposed to form the society within 4 months and finally give the conveyance (management) to the Society within another 6 months. He should handover these rights and title to the society via something called Conveyance Deed. After the conveyance deed, the society pays the transfer charge and gets the full rights to the plot and building. The document that grants these rights is also a Final Order as shown below…
Final Order in favor of the society
This lease deed and final order are the most important document that a flat buyer should insist on, once the Occupancy certificate is issued to the building. Society formation, Conveyence of land in favour of the society etc will become all the more difficult if this document is not available.
Occupancy certificate is issued by NMMC and proves that the building is legal and adheres to the sanctioned plans. Drainage and other water connections are given only after this final certificate. Please be aware that after the recent scams in land dealings in Maharashtra and Mumbai, the municipal authorities have become very strict and do not issue Occupancy certificates like they used to. Earlier the builder could pay a fine and regularize the illegal work but now its not uncommon to find buildings even on the high profile Palm beach road lying vacant for 8 months or more due to this factor. One such building is Rattan Icon located in sector 50, Seawoods (you can see it from Palm beach road).
Scene from inside CIDCO office at Belapur (1 st floor)
We cannot answer your queries on the phone as this subject is too vast and takes up too much time. We do not want to give you wrong advice and hence would request you to fix an appointment. A visit to our office will cost you money and will be made known to you at the time of appointment.
We are a real estate consultancy based in Nerul, Navi Mumbai.
RATE CHART FOR OUR SERVICES
SERVICE
CHARGES
CIDCO Transfer only
15,000
Mortgage NOC only
15,000
CIDCO Transfer + Mortgage NOC
20,000
Only Drafting/Documentation
5,000
Drafting and Registration of Sale Agreement/Sale Deed
10,000
Brokerage (Purchase/Sale transaction)
2%
Brokerage (Rentals)
1 month rent/year
Consultation over Phone/Whatsapp/Zoom/Google Meet
5,000/30 mins
Property Tax Name Transfer
10,000
Water Bill Name Transfer
10,000
Sky Properties, Nerul, Navi Mumbai
Address A-1, 7,2, Sneh Co Op Society, Plot no 16, Sector 19a, Nerul, Navi Mumbai 400706 Call Us 9987452642 mayur@navimumbaiestate.in
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