130 Mhada flats in CM quota lying vacant

Over 80 flats from last year and 50 flats from this year are lying vacant in Mhada buildings.This,when there is an acute affordable housing shortage in the city.The situation has arisen as Mr.Chauhan (the current CM) has relinquished his authority to allot 2% flats in affordable housing schemes of Mhada.Mr.Chauhan has avoided housing schemes like the plague after all the recent housing scams.He has given up the discretionary quota too.Earlier CM\’s made merry on this quota and rewarded their cronies and yes men with flats in this quota.This way they could buy the press,reporters and other people who needed some incentive to toe their line.
This year too,the Mhada has reserved 50 flats out of the 2593 flats up for lottery,which will has been declared today at Rang sharda auditorium,Bandra.The state govt has not eliminated this quota yet hence this reservation.
Mhada has recieved 1.5 lakh applications for 2593 houses up for grabs.
11,179 applications were rejected.
3995 were filled with the same account number but with different names.177 had same pan number but different names.
Under these circumstances,it would be ideal if the govt could give up the claim over these flats for once and for all.

Kharghar Golf course charges-Golf course is now open

A tentative list of facilities and charges has been released by CIDCO for the Kharghar golf course. The course was opened on 23 Dec 2012.

A tentative list of facilities and charges has been released by CIDCO for the Kharghar golf course. The course was opened on 23 Dec 2012.

Facilities	Timings	Par Length	Charge *Weekends
11 Holes	Summer 6:30 am to 4 pm	4552 Yards	1 round : Rs 750
Club House	Winter 7:00 am to 3:30 pm	Area 52 Hectares	Foreigners 1 Round : Rs 1000
Maintenance Shed		6 lakes

Kharghar Golf Course Details

Kharghar Golf Course

Note : Please do not contact us for any details regarding membership or any other issue regarding the golf course. We are merely the writers of this article and in no way are associated with CIDCO or its Golf course.

Municipal officers to face jail for illegal constructions

In a landmark move, the President of India has given her approval to the amendment in the Maharashtra municipal councils, Municipal corporations and MRTP act 2010,whereby the municipal officers who allow illegal constructions to stand despite complaints now face jail for a month or a fine of Rs.25,000.Mr.Bhaskar Jadhav (Minister of Urban Development) informed the legislative assembly recently.
The modification of the above acts, allows appointment of an officer to the said municipal corporations, councils, panchayats and industrial townships (MIDC),who will ensure demolition of illegal structures. If the officer doesn\’t perform his duties to demolish illegal constructions, he will be either imprisoned for a month or fined Rs.25000.
To ensure that the officer does his duty unhindered, the govt has already sanctioned the deputation of a DCP or ACP to the municipal corporation, council, panchayat etc.
State law amendments are sent to the Centre for approval if the matter they deal with is on the concurrent list. Since the modification deals with imprisonment, it was sent to the President for approval.
But before you start celebrating, the devil lies in the details, namely, the Rules for such a prosecution, which are yet to be framed. The Minister of Urban Development says that the framing of rules will take a couple of months.
Until then, its business as usual. What happens after that will depend on how tight the rules are.
If implemented in true spirit, expect a lot of demolitions around you. It should keep the Municipal corporation busy for a long time.

Related articles

• Illegal structures to pay 10 times more (iccrwaborivli.wordpress.com)

Property tax-Builders to be held accountable?

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 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.

Palm Beach Residency by Wadhwa-Scam Made in heaven

A Brief history of the Palm Beach Residency Project by Wadhwa on Palm Beach Road, Nerul, Navi Mumbai

Everyone who is looking to buy Real estate in Navi Mumbai has come across the Palm Beach Residency on Palm beach road, Nerul, Navi Mumbai (New Bombay), Maharashtra, at one point or the other, but very few are aware of the history behind one of the most extravagant projects in Navi Mumbai.

Here is a brief timeline of events…

Year 1994

Cidco (the government agency responsible for all land related issues and transactions in Navi Mumbai) allots 7 land plots in a prime waterfront area of Nerul at a concessional rate to 7 co-operative housing societies. Some with ingenious names like Sea Queen, Sea View, Amey, Sagarika, Sea Link and Vinayak.

On the surface it looked like a legitimate deal, but like all things in India, a little scratch below the surface revealed the true nature of the deal. The so called \’housing societies\’ were nothing but totally fraudulent entities, created by Mr.Vijay Wadhwa of Wadhwa developers along with so called \’leaders\’ of the Mathadi workers union, who got poor sections of their organisation (mathadi workers union), to become members of these fraudulent societies, with the sole intention to defraud the government by subverting and compromising the system and in the process, enriching himself and his co conspirators by more than Rs.35 crores (US dollars 70 million), as plots allotted to \’housing societies\’ are allotted at a discount to the market price.

The going market rate then was approximately Rs.21,000 per square meter.These societies were alloted the same land at Rs.10,500 per square meter. The total area involved was Rs.37,000 square meters (3,98,000 square feet).

Mayur Panghaal (Owner – Sky Properties)

Once he gained control of the land with active collusion of the then Chief Minister-Sushil Kumar Shinde, who signed on the absolutely identical and undated applications from the different fraudulent housing societies, writing \’Please put up\’, without as much as even bothering to check who or where these housing societies arose from. The least he could do was at least raise an eyebrow as to how absolutely similar computer printouts were sent as applications.

Palm Beach Residency Swimming pool and Basketball court

Later, this scam was unearthed by the Public center for governance trust, headed by ex commissioner Julius Ribeiro and others and pursued via a case in the courts. Wadhwa ended up losing the case in the high court of Mumbai and took the case to the Supreme court where he \’managed\’ the system and got the verdict in his favor, even though the court agreed that it was a fraudulent deal.

Wadhwa was lucky that he could manage the system back then cause if it were to happen in the vigilant times and anti corruption sentiment we live in today, he could\’ve said goodbye to his project.

But as is the fate of this country, most of the swindled money is probably sitting in an off-shore account somewhere in Cayman islands or Switzerland, ready to come in as FDI into India or into the share market as an FII investment via Participatory notes. Black money out, washed money in. Its a beautiful thing.

Important Update (10.7.2013)

1. Wadhwa builders have not submitted the building plans according to which they have completed the construction. This could mean that the plans submitted to NMMC differ from what has actually been constructed.
2. Application for OC was not accompanied by signatures of the land owners.
3. No clearance has been obtained from the NMMC health department.
4. Since the building falls under CRZ -2 area, approval will have to be obtained from the NCZMA (Maharashtra Coastal Zone Management Agency). Unless the CRZ laws are changed, any change in the OC status looks impossible. For laws to change, they have to be amended by the Parliament or the state assembly., which again looks impossible.

Important update 6-8-2013
Original Allottees of the plot are no more traceable !

It has now come to light that Palm beach residency (Wadhwa Group) is facing serious issues regarding the legality of the project as it (Wadhwa group) did not obtain clearances from the environment ministry as if falls within 500 meters of the coastal line and hence violates the CRZ act. This has resulted the the project not receiving an occupancy certificate and hence no water or electricity connections from the Municipality (the builder has managed temporary connections for now). Not receiving and occupancy certificate also means double the property taxes, no water supply, no electric supply. What is most astonishing is the fact that 80 families are staying in the towers even though it does not have an Occupancy Certificate. Currently, water is being supplied by Water tankers. It is also a violation of the Town Planning act to stay in a building without an Occupancy Certificate. Whether the builder has obtained permission to operate the lift is also under question. 

Further legal complications can be expected if someone goes to court over this or files an RTI and the Municipal officers are forced to evict the current occupants. Also, it has come to light that the building has 4 automatic elevators but only 1 is operational. This may be due the the fact that the permission to operate the lift has not been obtained from the NMMC. The developer has taken 1 years maintenance in advance from the buyers.

Copy of the RTI is shown below…

In another surprising development, the architects of Palm beach residency, Hiten Sethi and Associates (Architects),have submitted a letter (shown below) as a follow-up to the letter above. Interestingly, Hiten Sethi and Associates have stated that they have acquired \’all the documents\’ necessary for the Occupation Certificate…but on closer scrutiny of the letter it shows that the only thing they have managed to acquire is a \’health certificate\’ from NMMC. There is no mention of the signatures of the plot \’owners\’ (the founder members of Ameya, Sagarika and Sea Queen societies) to whom the plot was allotted. There is also no sign of the plans according to which the buildings have been constructed. This could mean that….

1. The original plot allottees of the plot are no more traceable or are demanding their pound of flesh.
2. The plans according to which the building has been constructed is different from the plans that were submitted for approval.

This only means one thing : Years of trouble ahead.

CONTACT US

PRICING TABLE

Service provided by us	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

List of illegal schools in Navi Mumbai

The Navi Mumbai Municipal corporation has just released a list of illegal schools in Navi Mumbai.Shockingly,some of the schools on the list count themselves as exclusive schools.All schools in Navi Mumbai are supposed to get registered with the Municipal corporation as per state govt norms and education board regulations.Last year the list had 18 schoools.
The schools have been blacklisted and have been told to stop operations immediately.
Most of these schools do not have permission to conduct examinations and some are allowed to operate only till 7th standard.
The Municipal corp can impose a fine of Rs.1,00,000 as per education act 2009…and Rs 10,000 per day after that.
If they do not stop operations,the Municipal corporation will act legally to stop their operations.Parents are hereby warned not to enroll their wards in the schools listed below….

1. Right Way english school,Nerul
2. Eden school,Nerul
3. Goodwill English school,Shirawane,Nerul
4. Freedom Fighter and Maruthi Kale School,Nerul
5. St.Xaviers school,Nerul
6. Sri Ram Hindi Vidyalaya,Shirawane,Nerul
7. Sri Sai Jyothi English school,Koparkhairne
8. New City English school,Sanpada
9. Bharatiya Jagran school,Koparkhairne
10. Indrayani English medium school,Koparkhairne
11. Apex school,Gotivali.
12. Radcliffe school,Sector 11,Belapur
13. Rajeev Gandhi Hindi Vidyalaya, a Hindi medium from Yadavnagar
14. New Modern School, a Marathi medium at Ghansoli
15. Ganesh Vidaylaya, a Marathi medium school from Digha.
16. Samvedana Vidyamandir, a Marathi medium school, Digha
17. Bharatiya Jagran School\’s all three mediums – Marathi, English and Hindi Medium – from Koparkhairane
18. Saraswati Vidya Niketan, an English medium school from Ghansoli
19. St Mary\’s night school, an English medium from Vashi

1200 illegal houses demolished in Kashimira

Over 1200 houses constructed on Tribal land and Reserved forest land in Kashimira (Mira Bhayandar municipal council) were demolished on Sunday 20,May 2012.The areas affected were-Minakshinagar,Mashachapada and Dachkulpada.Over 500 municipal workers and 13 JCB machines completed the job in 3 hours.The occupiers were earlier given a notice.The Municipal authorities were opposed by a crowd of 2000 people but they were soon pacified and told to collect their belongings after which the houses were demolished.The locals claimed that they had paid the local politician Jyotsna Hansnale (NCP),Rs 50,000 to Rs 60,000 to allow them to construct the houses.Mira Bhayander is headed for elections in August and this demolition is sure to make a difference in the outcome.

Related articles

• Maharashtra Minister held for Jalgaon housing scam (thehindu.com)

Navi Mumbai has 54,267 vacant houses

A startling figure has come to light during the 2011 house census. The census says that out of the 3,89,019 structures classified as houses, 54267 houses are vacant (without any occupant).This is roughly 13.94%. This survey was undertaken by the Govt. Out of these structures,2,52,201 structures are used purely for residential purposes,4215 are used for mixed purposes and 36,394 are used as shops and other uses.582 structures are for academic purposes,1603 as hotels and 1176 as hospitals and clinics,5015 as factory and workshops and 836 as places of worship.
Confronted by these shocking statistics, the builders reacted with the usual shrug of the shoulders, saying that it was not possible. Many attributed the statistics to investors who keep the flats locked up and wait for the market to shoot up. Other builders also feigned ignorance of such a possibility. Whether this survey included newly constructed buildings or not is not clear. If they weren\’t included, the actual figure of vacant houses may go up by a few thousand more houses.

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

How to ascertain legality of second homes in Maharashtra

There has been flood of offers by builders recently, offering weekend homes/farm houses/villas etc situated outside city limits but within a couple of hours driving distance from the city.
Though the prices are cheap compared to city living, the main deterrence/worry is the legal status of the land in question. How does one verify whether the houses shown in the brochures have all the necessary permits, since village land does not come under Municipal jurisdiction.
The steps for the same are outlined below..

• Check whether the Non-agricultural land order has been issued by the Tehsildar. Do not believe the Non agricultural order shown by the builder/developer as this may be forged. Contact the local tehsildar office with the gut/hissa number (as per 7/12).
• Non-Agricultural land certificate is valid for a limited time. So check whether the land is currently Non Agricultural. You can also check online for the latest 7/12 which shows the current owner of the land….along with the status (NA or Non-Agricultural land)
• Check the latest 7/12 extract of the land. This should specify the said land as Non-agricultural land. No construction can take place on agricultural land.
• Check with the nearest town planning dept office whether the housing project plans confirm to the overall development plans of the plot of land. The development plan of the area should be in the local town planning office (Collector\’s Office of the District)
• For even more security, try to get an official survey of the land done via the local tehsil office ( the tehsil office undertakes surveys of land for a fee ), just to verify whether the plot of land being shown to you is actually the land that is on the 7/12 order, tehsildar order, town planning approval.
• If you are buying agricultural land in Maharashtra, you need to have agricultural land elsewhere in India or Maharashtra on your name.
  This patta will be required at the time of registering the sale deed. And it needs to be translated into English if it is from out of state.

A copy of the land survey form which has to be completed and submitted at the Superintendent of Land Records office for getting a survey done and boundaries marked on any piece of land. Sample of the Form is given below

Land survey application formDownload

CAUTION

Just because the ownership records in the Talathi office are clean does not mean that the land is clean. Despite land records being clean there could be multiple court cases on the piece of land. And you will never know this unless you decide to undertake a detailed investigation of the legal records. And if you think you will simply search online on the court websites, you will be groping in the dark as the court website does not give any details unless you know the date or year of the case filing.

Caution : Dividing big plot with govt given survey and hissa number into smaller plots and then building bungalows on it or selling individual small plots is illegal without collector/town-planning dept approval.Its A violation of the Gunthewari act (Law) of Maharashtra.
And most of the so called ‘Bungalow Projects’ and ‘weekend homes’ are illegal for that reason.

Once you have verified and signed and registered the sale deed, its a must to get fencing done around the plot to prevent encroachment.

Services Offered by us	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

Conmen use forged documents to erect 40 buildings on outskirts of Dombivali

A new sensational fraud has been unearthed in the Dombivali region of Mumbai. Six conmen -Sunil Gawde, Sunil Bodhare, Satyawan Kadam, Ajay Kolte, Vishal and Mritunjay Singh came up with a unique plan to defraud people by targeting areas falling out of the Dombivali-Kalyan Municipal corporation.
Since areas which are out of the Municipal corporation supervision fall under the approval of the collector, Deputy collector and Tehsildar, the accused forged documents of approval from all these officials and made over 40 buildings in the villages of Bhopar, Davdi, Azade, Govali and Nandavli, all located on the fringes of Dombivali. They would also forge the NA (non agricultural) permission which is required to construct in rural areas.
The gang was operational for the past 2 years and used to lure buyers by placing ads in local newspapers and cable tv channels.
A case of fraud and forgery has been lodged against them by the Ulhasnagar police station.
The scam came to light after a tip off to the police.

Update on 11 June 2012
As a follow up to this scam investigations,20 more builders have been found guilty of similar violations.33 builders have been booked of which 6 have been arrested while 27 are absconding. Police sources said that a couple of them were close to MNS and BJP mla\’s. The tally of illegal buildings have crossed 100.Collusion of members from the gram panchayat etc cannot be ruled out.

2.5 fsi in Navi Mumbai - Is it necessary ?

Why demand 2.5 FSI when redevelopment can be done in 1 or 1.5?
This question arises after the residents of C-2 type in Vashi demand 2.5 FSI against GDCR

By Shilpa Suryawanshi

NAVI MUMBAI: In 2007, i.e. 4 years back, Indian Institute of Technology (IIT) Bombay, Powai had done structural audit of C-2 type building numbers 1 to 10, in sector.16, Vashi. In its report these buildings were categorized in ‘category: c1’ which means ‘Buildings are in extremely dangerous condition and may collapse any time soon.’
Almost four years back, the C-2 type Apartment Owners Association (AOA) was in possession of IIT report but interestingly it approached Navi Mumbai Municipal Corporation (NMMC) only in 2010. It is questionable that if buildings were declared as dilapidated and inhabitable, then why AOA waited for 4 years and not vacated the buildings soon after the report?
The proposal of AOA regarding declaring these buildings dilapidated was submitted to NMMC in 2010.
Soon after having proposal in hand, NMMC Commissioner, Bhaskar Wankhede appointed committee for reviewing the proposal of AOA. Committee agreed with the IIT report and sent letter to AOA stating that buildings are dilapidated.

Extended buildings in Navi Mumbai

The Navi Mumbai Municipal Corporation’s Government Development Control Rule (GDCR) clearly states that if buildings are declared as unsafe then they should be vacated immediately or within the specific period. In addition to this, it also mentions that if the owner or occupier fails, neglects or refuses to comply with the notice then corporation should remove the danger by demolition or by repair. Now if one goes by that rule then under the directives of Municipal Commissioner, these buildings should have been vacated long back without delay.

Encroachment division head (of NMMC), Subhash Gaikar who was one of the members in Committee said, “Under the directive of Commissioner we have given notification in news paper and have suggested to association that buildings are in dilapidated condition.” He added, “After publishing notification and sending letter to association our responsibility has ceased.” His statement is clearly in non-compliance with GDCR in which it is clearly stated that if owner neglects the notice then corporation must remove the danger by immediate demolition.

CIDCO constructed SS type houses in Navi Mumbai

Now the Residents dwelling in these buildings are blaming CIDCO for poor construction and instead of reconstructing buildings are demanding 2.5 FSI whereas as a matter of fact these buildings must be built in 1.00 FSI, as the same provision is also mentioned in GDCR, although corporation is inclined to approve 1.5 FSI through change-of-user, but there is a stay on the same.

President of AOA, Subhash Shewale, who is demanding 2.5 FSI said, “In near future we may start reconstruction work with 1.5 FSI (even when there is a stay on change-of-user) but at the same time we will keep provision for 2.5, as we are sure that Naik will get it sanctioned for us.” While vying for 2.5 FSI he has full faith in Thane Guardian Minister Ganesh Naik and MLA Sandeep Naik that they will win additional FSI from state government.

Let us remind you that in last corporation election, Ganesh Naik had assured that he will get approval for additional FSI from state which apparently led to his National Congress Party’s victory.

RTI activist, who has unearthed hidden facts said, “When these buildings can simply be redeveloped in 1 FSI, or say, 1.5 FSI, through change-of-user, then on what basis the said association is demanding for 2.5 FSI.” He continued, “These buildings were just built in 80’s besides later the association had also carried out extension and repair work of buildings, then how can they be declared as dilapidated.” He is also doubtful about the IIT report, he said, “How can IIT declare these buildings dilapidated which were repaired and extended just four years back by association. If anyone is truly going to benefit out of redevelopment or reconstruction then it will be no one but builder’s lobby.”

Builders lobby will benefit because if the height of buildings is increased then the value of land will go up too, besides due to additional FSI, residents will get bigger flats.

It is questionable that why anyone should demand for additional FSI when they have only paid for present area to CIDCO, besides there has been no provision in corporation’s GDCR for the same.

In the present case, said association ethically cannot blame CIDCO for poor construction since in past, association itself had repaired and extended buildings, besides if reconstruction was no good then how NMMC’s Town Planning department gave Occupancy Certificate to buildings.

If buildings are given additional FSI in Navi Mumbai then it will create a load on municipal services, likewise with increasing population, the city will feel immense pressure in terms of accommodation of vehicles in limited space.

In current scenario when corporation is already finding it difficult to accommodate vehicles, then additional FSI if at all sanctioned, then no wonder it’s bound to play havoc in so called ‘planned city’.

Excellent article from Newsband

How builders cheat flat buyers in India

In our recent experience, particularly in Navi Mumbai, we have come across numerous instances of builders giving a false picture to flat buyers, in order to sell their flats. Some of these methods are listed below and could be classified as scams to rip off the gullible customer….

“There is only one flat available”

This is the most common statement made by builders to any inquiries about their projects. It is more prevalent in smaller buildings of 4 floors or less. These are typically small plots of 200 sq. meters in Navi Mumbai and are usually Tripartite (also called CIDCO transfer plots by some builders). This is done to project a false image of a booming market. In most cases the builder has not even sold a single flat, let alone all flats. He makes this statement expecting the buyer to hurry his purchase and to sell his unsold flats. And normally this ‘available’ flat is either the ground floor or the top floor or some other location with a really bad ventilation or view. This is the flat that will give him the maximum headache while selling, therefore he wants to sell it first. In big projects, its normally the 4 bhks which the builder wants to get rid of first. 2 and 3 bhks are relatively easier to sell.

“All flats have been sold to investors,you will have to buy from them,there is no flat available directly”

This is nothing but another attempt to make you feel that the flats are in such a huge demand that there are none directly available from him. But dig a little further and ask him for a copy of the registered and stamp duty paid sale agreement of all those investors and you will be told that he doesn’t have anything like that because they have all paid in cash !! So basically he can catch a sweeper and make him appear like an investor cause cash payment has no record. Dont believe any such crap. This is just a trick to make you believe that he has sold all his flats. In most cases, he has not even sold a single flat.

Selling same flats (area-wise) at different prices to different buyers

The Real Estate market is the cash cow for politicians. They invest heavily via proxy companies and shell companies. It is also heavily funded by policemen. They plough all their ill-gotten wealth into real estate. Their black money funds builders in a big way. They don\’t want to let go of this money machine at any cost.

Mayur – Sky Properties

One way to find out whether you have been ripped off is to file an RTI with the Registrar of Societies of the district where the project is located and source out all the documents filed for registration of the society. These documents have details of all the flats that were sold and the price which were sold at along with the date the flat was sold on. Don\’t be surprised if you find you were ripped off a few extra lakhs than your next door neighbor. But this is much after the flats have been sold and the builder has formed the society. By then it may be too late to save your money. Photo below shows the list that the builder has to file with the registrar of Societies. Take a look..

“For carpet area,subtract 33% from the Saleable area (super built up area)”

This is the biggest scam being practiced on gullible buyers. When a builder tells you to assume that loading is just 33%, you can safely assume that the actual loading is almost 50%. You will end up paying a few lakhs more just because of this scam. It is safe to assume that in buildings that have been constructed recently (upto 3-5 years ago), the carpet area is exactly half of the built up area or maybe even upto 40% of the super built-up area. This is the main reason why older buildings are actually cheaper when compared via Carpet Area, since their carpet area is much more.
The technical term for this scam is ‘Loading’.
Please read other sections of our website for detailed explanation of this scam.

PS : With the advent of RERA, this lie has been curbed to a certain extent as the RERA website has the carpet area mentioned. But one should double check this area with the actual area as sometimes the builders give wrong and misleading information to RERA and RERA authorities blindly upload the same on the website. Caveat Emptor.

“You will get the legal papers only after paying the cash component of the deal” 

Honest builders should give you a copy of all legal documents like title certificate, Municipal sanctioned plans, sample sale agreement (on blank paper) etc which you should get verified by a lawyer. The lawyer will normally not charge you to look at these papers. Don’t make the mistake of blindly paying the builders in cash. You will never get it back and you will be trapped.

PS : With RERA, this lie has also been curbed to a certain extent, since these disclosures are found on the RERA site…but recently there was a massive scam where some fraudsters forged building permits of the municipal corporation and land documents and got their projects listed on the RERA website. The buyers blindly believed the RERA authorities and booked flats in those projects (more than 55 at the last count) and lost their money. Just another day in Mafia Nation. See full report here

Flat is Vastu Compliant

This is another lie which the gullible liar swallows without a question. The builder does not substantiate his claims in any manner. No Vastu Charts or Autocad Drawings with the Vastu zones clearly marked are shown in the brochures. Simply saying that Entrance is facing the north or kitchen is in XYZ direction is nowhere close to what real Vastu is all about. Real Vastu involves careful plotting of the flat or home in Autocad and then superimposing the detailed direction map on top of the Autocad design to see the actual positions of the rooms and directions. But no builder will tell you all this and they will not show any evidence that their flats are Vastu Compliant. What the builder says is North may not be the accurate north. And even if it is the North direction, the other directions will change depending on the shape of the flat (Square or Rectangular). Any so-called ‘Vastu Expert’ who does not even plot an accurate floorplan of your flat in Autocad is just fooling you.

If any builder claims Vastu Compliance, ask him to send you the DWG file (Autocad file) of the flat and then you can send it to your Vastu consultant for careful verification and analysis. This is the only way for accurate Vastu analysis.

Society formation charges,Parking charges,Development charges.

Basically, you can safely assume that these charges will be taken in cash and no receipt issued as all of these charges are illegal. Builder does not sacrifice any FSI for parking area and hence its free for him. Supreme court has banned sale of parking space. What the builder doesn’t tell you is that he is not only charging for the society formation but also taking money for the conveyance of land and building to the society after its formation. Development charges are also illegal. Society formation charges are a scam as the registration of the society barely costs 5000 rupees and its the builder’s responsibility and expense to form a society as soon as he sells 60% of the flats in his project. Conveyance of land and building to the society is also the builder’s responsibility and expense. He cannot make the end consumer pay for it. If he does, you can take him to the consumer court. Even if he does not form a society or give conveyance, he can be taken to the consumer court. The decision is quick and will always come in favor of the society/flat purchaser.

How to Proceed legally against Builders who do not form a society and give conveyance to it :-

Flat buyers (*registered societies) can collectively hire an advocate for Rs 25,000 to 30,000. These charges include drafting and filing the papers in the Consumer Court, attending the hearings, arguments, serving notices and getting the certified copy of the final order of the court and getting a decree from the court to execute its order. 
These things must be made clear to the advocate in the beginning of the case in writing and his signature obtained on a piece of paper.
If you neglect this, you cannot pursue a truant advocate.
The Supreme court pays advocates it appoints as amicus curiae (friend of the court), Rs 6,000 at admission stage and Rs 10,000 at final hearing.
So do not think that these charges are ridiculously low. And if you think that these charges are unrealistic, you can click on this link to see the official rate list of advocates in Supreme Court.

Consumer court handles these types of cases day in and day out. Its an open and shut case for them. Its not some super complicated or difficult matter. Approach the consumer court with confidence. The order will come in your favor at a fraction of the cost that you would pay for conveyance and registration yourselves.

Profit Margins of builders (Minimum 150%-200% margin)

When a builder quotes a price to you (per sq foot), you must assume that his construction cost + land cost + interest cost is exactly half of what he is quoting you. This is the bare minimum. An easy way for you to figure out a reasonably accurate figure is to first figure out his land cost. In Navi Mumbai, CIDCO gives prime plots on Tender. And winning bid can be found out via RTI filed with CIDCO. Then you calculate the built up area of the entire structure. This information is available on the RERA site. In Mumbai (Maharashtra) the cost of construction for the best quality construction is Rs 4000 per sq ft (includes everything including fittings and finishing) . This includes everything. If the builder compromises on this, he can cut down the construction cost to Rs 2000 per sq ft. Once you have his land cost and total built up area calculated, you can arrive at a fairly accurate figure of his cost of construction and land cost. Once you figure that out, its simple maths that will tell you how much it cost him to construct your flat. And in most cases you will see that its exactly half of what he is pricing his project at. Sometimes his margin is 200%. If you want you can even calculate the interest cost of his loan (if he has taken one)..cause construction of a Ground + 17 floor structure in Mumbai takes at least 1 year. A builder needs his own source of funds to complete upto 2-3 slabs of construction. After that he funds the rest via funds taken from buyers. If he is short of funds, he will sell a few flats to get some funds and continue construction.

If builder manages to sell 1/3 of the flats via booking during pre-construction or construction stage, he has funded his entire construction. He can relax and sell the rest of flats at any fat price he wishes. You can get max discount from the quoted price (upto 30% discount) during the initial construction phase or pre-construction phase. If he is really short of funds he may even give you a 40% discount … so that his construction can continue.
So basically, for a builder, the main task is to somehow sell 1/3 of his project, even at a discounted rate, to fund the rest of the construction.

This should give you a good starting point to bargain with builders. When any govt dept issues tenders for a certain job, they calculate how much it will cost to complete the job. Then they issue a base price. This base price is calculated at cost + profit margin formula. Whoever bids closest to this price wins the bid.

Negotiate from a position of knowledge and inside information.

Price 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	4,000/30 mins
Property Tax Name Transfer	10,000
Water Bill Name Transfer	10,000

Pricing Chart for Our Real Estate Services

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

Panvel flyover to open in June

Panvel Railway Station at night (Photo credit: Wikipedia)

The long awaited flyover in Panvel is likely to be functional in June. This 1.7 km flyover was started in Nov 2009 and is built by JMC projects.
The long sought relief from traffic jams on the Panvel ST stand road is finally becoming a reality.
Congratulations to all the citizens.

NMMC General Body clears 2.5 fsi for redevelopment in Navi Mumbai

There is good news and bad news for the people of Navi Mumbai who have been staying in dilapidated buildings which have been long declared unfit for habitation.
The good news is that The Navi Mumbai municipal corporation (NCP) General body meeting passed the proposal to hike the redevelopment FSI of Navi Mumbai to 2.5 for dilapidated structures and an FSI of 4 for gaothan areas and chawls.

This proposal has been hanging since 2009 and assumed larger proportions when elections are near. People of Navi Mumbai have been misled by false promises and announcements in the past. But this time the NMMC claims to have prepared a ‘fool proof’ plan prepared by none other than CRISIL.

If successful, the proposal will immediately affect more than 70 structures which have been declared unsafe.

Now for the bad news

The proposal will now go to the Urban development department of the Govt of Maharashtra, where it will be studied and its fate decided. Laws and rules regarding FSI and Development are passed in State Assembly and published in the State Govt Gazette via a Notification.

Without a Gazette Notification, even a million resolutions passed in Municipal Corporation will have Zero Effect.
The Motive behind passing this ‘resolution’ is pure fakery and deceit to fool the ignorant people who have zero knowledge about laws and procedures.

Redevelopment : The toughest nut to crack

Although redevelopment is already a tough procedure, it becomes all the more tougher as most of the CIDCO building inhabitants do not have proper ownership documents and most have \’purchased\’ the flats via Power of attorney as the sale of these flats/houses was forbidden by CIDCO for a few years after allotment. To bypass this ban, allottees often sold their flats via Power of attorneys. Most buildings have still not formed co0p housing societies and many have not paid property taxes. Most don\’t have conveyance.

For redevelopment to succeed, all these documents have to be in order.
In order to get these in order, an expense of a few lakhs cannot be ruled out.
Its anybody\’s guess as to how many residents of these low income colonies are ready to shell out that kind of cash to get their papers in order.

Until an outcome for these problems is found, redevelopment is a distant dream for most of Navi Mumbai, the approval of the Urban Development Ministry not withstanding.

Stamp duty-what you need to know

Most people try their best to reduce the stamp duty payable on the purchase of property by any means. Some resort to giving wrong cts, area, gat or survey number while others falsely state the age of the building or the condition and amenities of the same.
But most of them are not aware that stamp duty evasion is a serious offence which can sometimes cause a fine many times that of the evaded amount and imprisonment too. Adjudicated documents can be reopened even 6 years from the date of adjudication.
Stamp duty cases can be reopened even 10 years after the document is executed and registered.
Stamp duty is calculated on the basis of the Ready Reckoner rates released by the govt every year. These rates vary from area to area. Generally, these rates are lower than the market rates.

The age of the building: Depreciation is allowed on a building 2 years old or more. Between 5% to 70% depreciation can be claimed on the total value of the structure (land plus building).

Whether a lift is present or not: If a lift is present in the building, its value will increase by 5% to 20%,depending on the floor that the flat is situated on.
Reduction can also be claimed if the building is 4 stories high without lift. Between 5% to 20% reduction can be claimed, depending on the floor. 1st floor will get 5% reduction while 4th floor can claim 20% deduction.

Ready Reckoner Rates Can be found on this website for Maharashtra

If a govt body like SBI, Income tax, LIC etc sells a property, the price it sells at is considered the correct market price for the basis of valuation.

NOTE : Depreciation is only available for properties which are sold at Ready Reckoner rates. For properties sold at prices higher than Ready Reckoner Prices, no Depreciation is allowed.

Mayur Singh

Age of the building in years	Depreciation permissible for a permanent structure (in %)	Depreciation permissible for a temporary or semi-permanent structure (in %)
Up to two years	Nil	Nil
More than two years but up to five years	5	5
More than five years but up to 10 years	10	15
More than 10 years but up to 20 years	20	25
More than 20 years but up to 30 years	30	40
More than 30 years but up to 40 years	40	55
More than 40 years but up to 50 years	50	70
More than 50 years but up to 60 years	60	80
More than 60 years	70	85

Depreciation Calculation Table for Stamp Duty

Stamp Duty on Gift Deeds Depends on how the giver is related to the taker.

Services Offered by us	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

Stamp duty refund rules

Sure! Here’s a simplified and rephrased version of the article on Stamp Duty Refund Rules:

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Stamp Duty Refund Rules

~Registration office in Panvel~

Note: This information pertains only to stamp duty and does not cover registration charges.

Refund Eligibility

You can claim a refund of stamp duty in the following cases:

1. Spoiled Paper: If the stamp paper is spoiled or blank.
2. Executed Document: If a document was signed but later found to be unfit for some valid reason.
3. Registered Documents: If a document is executed and registered, but the physical possession of the property has not been handed over to the purchaser.

Time Limits for Claims

• Spoiled or Blank Documents: Claims must be made within six months from the date of purchase of the stamp paper or franked document.
• Executed Documents: Claims must also be made within six months from the date of purchase if the document is found unfit.
• Executed and Registered Documents: Claims can be made within two years from the date of the document if possession has not been transferred.

Procedure to Claim Refund

1. Application Submission: Submit a refund application in a standard format to the Collector of Stamps office, along with the original document.
2. Acknowledgment: Obtain an acknowledgment of your application.
3. Follow-Up: Regularly follow up with the concerned officer for timely processing of your claim.

Additional Information

• The standard format for the refund application, along with any required documents (like affidavits or power of attorney), can be obtained from the Collector of Stamps office.
• Refunds are processed according to Sections 47 to 52A of The Bombay Stamp Act, 1958. It’s important to review the relevant rules and notifications carefully.
• Be cautious: any mistakes in the application can lead to rejection. If you’re unsure about the legal provisions, consider seeking legal assistance.

Important Note

These guidelines are specifically for claiming stamp duty refunds. Registration charges are not included here, but they can also be refunded. Please check the specific rules regarding registration charges.

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If you have any more questions or need further clarification on any point, feel free to ask! 😊

Courtesy : DNA newspaper 12 May 2012

New Property tax system unfair to old buildings?

Tax (Photo credit: 401K)

From the Times of India 12.May.2012

MUMBAI: Despite the claims of the civic body on having transparency and parity in the new capital value-based property tax system, citizens seem unhappy at the development.

They feel that while a handful of new buildings that have come up after 2005 will benefit from the new system, several old structures will face a high rate of taxation.

According to BMC data, 27% or 3.87 lakh properties will benefit from tax reduction, whereas 19% or 2.75 lakh properties will face a higher rate of taxation, which will be up to two times the original amount paid. The maximum number of such structures are found in Andheri-Vile Parle west (50,000), Bandra-Khar-Santa Cruz west (34,000) and Esplanade-Fort-Colaba (11,000).

Anandini Thakoor, chairperson of the H-West Ward Welfare Association, said: \”I understand that expenses have risen. But to shift the burden to citizens is not justified. Residents of some old buildings will have to face a 100% rise in tax. The tax slab should have been lower.\”

Many felt that the approval to collect rent in retrospect was unjust. AGNI coordinator Raj Kumar Sharma said: \”The state had to amend the present law to make it possible. The revised property tax should be levied from the time the revision is approved by the corporation.\”

An official said there were legal provisions to charge people retrospectively. \”From April 1, 2010, we had been sending people provisional or temporary bills. It was clearly mentioned in the bills that payment would have to be adjusted once the new system was approved. As it might be a steep amount for many, we are likely to extend the due date of payment of bills till March next year without any penalty,\” he said.

What New Property Tax Format Means For You

A Borivli resident will stand to gain more-in terms of percentage-than a person living in Cuffe Parade under the new capital value-based property tax system. While there will be a 54% reduction in property tax in the former, the latter will see a 37% decrease.

In Cuffe Parade, tax levied under the old ratable value system was Rs 17.54 per sq ft per month. Taking into account the Ready Reckoner (RR) rate, which is Rs 34,330 per sq ft, the new property tax has gone down to Rs 11.10 per sq ft. In Borivli, the rate has gone down from Rs 4.99 to Rs 2.28.

Meanwhile, civic officials said of the 700 RR pockets in the city, only 17 had properties with a capital value more than Rs 2.5 lakh, pushing their taxation higher than the rest of the city. However, compared to the old system, the taxes have come down. Nepean Sea Road is one such example. With an RR rate of about Rs 53,120 per sq ft, the new property tax is pegged at Rs 17.17 per sq ft per month, 41% less than the earlier Rs 29.11

http://timesofindia.indiatimes.com/city/mumbai/New-system-unfair-to-old-buildings/articleshow/13103366.cms

Related articles

• NMMC to send \’illegal\’ stamped bills to unauthorized constructions (navimumbairealestate.org)
• Property Tax:Builders to be held accountable? (navimumbairealestate.org)
• Now, pay tax for refuge areas & open terraces (iccrwaborivli.wordpress.com)