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

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.

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 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)

Fraud,cheating cases filed against builder

Developer failed to stick to bldg plan, gave residents possession without OC

Two separate cases of fraud and cheating have been registered in Navi Mumbai against a group of builders and government officials on the directions of the high court. The order came after Navi Mumbai residents Sunil Kumar Lahoriya and Pramod Mittal moved a writ petition in the court.
In the first case, Lahoriya moved a criminal writ petition against builders and NMMC officials on the \’illegal construction\’ of Vignahar CHS at sector 14, Nerul. The petition asked permission to file an FIR in the case and the court directed the local police station to register a complaint. According to the complainant, the builders of Vignahar CHS had two structural plans for the building of which one was approved by NMMC,but the building was constructed as per the other plan.
Lahoriya bought a flat in the building and since no society had been formed, he was authorised by other members to sue the builder on their behalf. Lahoriya\’s advocate said his client obtained the original plan of the building using RTI and came to know that it was not what had been promised in the brochure.

In the Vignahar CHS matter, a case was registered with Nerul police station under sections 406, 420, 467,468, 471, 409 and 34 of the IPC against builders Vijay Gajra, Lada Ravariya, Dinesh Patel, Verasi Dama,Govind Varchand, Keshavji Gala, architect Anurag Garg and his wife from Dimensions Ltd, structural engineer AG Gokhale and NMMC officials Umesh Patil, Dilip Kulkarni, Sanjay Banait and others. In all, 12 people were identified as accused.

In another case, Pramod Mittal moved a criminal writ against the builders of Green Heritage building at sector 20, Kharghar, and other government officials attached to Cidco,MSEDC and the crime branch, seeking permission to register a FIR. Kharghar police registered the complaint against 36 people in accordance with a direction from the court.According to the complainant, the builders of Green Heritage building gave possession to its residents without getting an occupancy certificate (OC). Cidco provided water to the building without verifying the documents and MSEDC provided an electricity connection.
Even though Cidco and MSEDC sent the builder a notice to submit the OC in October, they failed to take action against him, the complainant said. \”When my client approached thecrime branch, the DCP tried to suppress the case. He held back the case and got involved with the builders of Green Heritage. So we have made the officer and other government officials co-accused in the case,\” Mittal\’s advocate said.
The case has been registered against Vijay Gajra, Dinesh Patel, Gangaji Bhanushali, Sunil Gala, Sohail Gala, Karman Patel and other partners in the Green Heritage project including Vasant Bhanushali, TP Rana, Jumma Khumbhar, architect Anurag Garg and his wife, RCC consultant AG. Gokhale, NC Bhopi. The co-accused are Cidco chairman Pramod Hindurao, Cidco JMD Tanaji Satre, TC Benjamin (secretary, urban development department, Maharashtra), Manukumar Srivastava, L Radhakrushnan, SS Sandhu, Rahul Asthana, Bhaskar Wankhede (commissioner of NMMC), Namdeo Rama Bhagat, Vasant M Bhoir, MD Lele (chief planning officer, Cidco), V Venu Gopal (MTS), Vivek Marathe (MTS), Shivaji Jondhale (CCUC), DJ Chavan (executive engineer electrical), NS Patil, (executive engineer, water supply, Cidco), chief eng. Bhandup div. MSEDCL, SG Karpe (sup. eng. Vashi Circle), DR Sabu, DV Swanande (Dep. Eng. Kharghar Sub Div.), Subhash Rathod and 20 other besides DCP (crime branch) Dattatrey Shinde and officials from additional town planning  departments of Cidco and NMMC.

In latest developments….All the builders involved in the Green Heritage case were remanded to judicial custody on the 16 th of May 2012 by the Belapur Court,but 2 of the accused,Mr.Gajara and Mr.Patel,fled from the Court premises and are currently absconding.The police have registered a case for absconding against them.

Mumbai airport encroachment clearance frozen for past 5 years

 

References:Times of India.May 12
Almost 5 years after the slum areas around Mumbai airport (Santa Cruz) were supposed to be cleared,almost nothing has changed on the ground.Almost 276 acres of land,supposed to have been cleared by the contractor HDIL,are still very much in possession of the slum dwellers.In the meanwhile,HDIL has already made a windfall profit of 2000 crores by selling the TDR it got in exchange for building tenements for the \’relocated\’ slumdwellers on its land in and around Kurla.

The total families residing in the slums numbers approx 85,000 families (or 3.5 lakh people).HDIL has so far made only (claims by the company) 10,000 tenements.Of this the Slum rehabilitation Authority has has handed over only 2000 tenements to MMRDA for allotment to the slum dwellers.But on the ground,only 500 tenements have been actually allotted.These 500 families were shifted as they were coming in the way of the sahar elevated road from WE highway to International airport.

The confusion about who is eligible and who is not is only set to intensify as more than 50% of the slumdwellers are ineligible for the houses.The govt has set the year 2000 as the cut-off date for the houses.Which means that only those slum dwellers residing there before the year 2000 will get the benefits.

HDIL has marked 5 locations for building 33,000 tenements eventually.

These are:-
Premier automobile land,Kurla
Popular car bazaar land,Andheri
Bhandari metallurgical estate,Kurla
Bombay oxygen land,LBS Marg
Kilburn Engineering,Nahur

The max tenements will be built at Premier automobiles land,Kurla -17523 tenements.

Where the rest of the 52,000 slum dwellers will go is anybody\’s guess.

The collector is still busy verifying who is eligible and who is not.
Currently the FSI for SRA projects stands at 4.
The first time this FSI was allowed was for HDIL.Now everyone gets it.
The total size of the Mumbai airport is 1800 acres.
The total encroached area is 276 acres.

Related articles

• Mumbai airport ranked third in world for \’service quality\’(ndtv.com)

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• Reports of CAG India – Discrepancies in the Slum Rehabilitation Authority, Mumbai(icrindia.wordpress.com)

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• \’Delhi, Mumbai airports earning least revenue\’ (ibnlive.in.com)

New property tax rate for Mumbai passed by BMC

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The new property tax calculating formula has been passed by the BMC.This calculation will now be based on the value of the property rather than the rent which it can earn in a year (which was the earlier formula).The result of this change will mean no change for flats less than 500 sq ft but for newer properties it can mean double the property tax than before.
These proposals were passed by the BMC standing commitee on Thursday,10 May,2012.
According to the new formula,the property tax rate will be multiplied by the Capital value of the property to arrive at the property tax.
According to the BMC,the new method will cause an increase in 19% percent of properties.Rest will remain unaffected according to them.Earlier even the ward officer could increase or decrease the property tax if he saw it necessary,but this will not be possible anymore.

According to them,the new tax will fetch 32,000 crores against 3200 crore at present.

The new rates of property tax will be the following :-
Residences (with metered water connection):0.41% of capital value
Offices:1.95% of capital value.
Banks:3.91% of capital value.
Illegal buildings (without OC or water connection):8.44% of capital value.

The capital value of a property will be determined by four factors : price, area, age, and the type of property.

The proposal is yet to be passed by the General body of  BMC.However,the first hurdle has been cleared.

Sourced from newspapers like DNA,Times of India and online resources.

For more information contact: 9987452642

Difference between Lease agreement and leave and license agreements

Mumbai earned the sobriquets Maximum City, City of Gold, even the rather unflattering Slumbay because of its one quality — an ability to attract people from all over the country looking for work. As these immigrants arrive in Mumbai, accommodation problems loom large. Here, housing expert, Ameet Mehta points out the laws and flaws about living on lease and Leave & License agreements.

An interview:

Q: Ideally, if I rent a flat and live on lease does the lease have to be for 11 months?
A: Earlier, Leave and License agreements were signed in multiples of 11 or 12 months. However after ‘The Maharashtra Rent Control Act, 1999’ came into force from 1.3.2000 there is no stipulation as to whether Leave and License agreement should be in multiples of 11 or 12 months, and there is no stipulation as to total time period. However Leave and Licence agreement generally does not exceed three years. But the new rule effective from May 7, 2005 states that you can do a Leave & License agreement now for a period up to five years and in multiples of 12 months each. An instrument creating a lease of immovable property for a term of one year and above was required compulsorily to be registered by virtue of provisions of Section 17(d) of the Indian Registration Act. Therefore, such Leave & License Agreements were being executed for a period of 11 months with the dual intention, namely, to avoid the stamping of such an agreement and its registration and secondly to avoid interpreting such Leave & License Agreement as a lease of the immovable property to avoid protection against vacation of the occupier, as per the provisions of the said Bombay Rent Act.

Q: Why is the lease for 11 months and not 12 months?
A:  The basic reason for making it on an 11-month basis by the property owner is to shy away from the law of giving six months notice. If the owner makes it for one year i.e. 12 months, then he has to give notice of six months at the end of those 12 months. If he makes the agreement for 11 months then there is no compulsion of giving notice, he can give him a minimum period of notice which he may think fit, say, seven days notice. The 11-month Leave & License agreement pre-empts the Rent Control Laws, which apply after 12 months. However, the execution of agreement is done on the basis of mutually agreed terms. Also, an agreement for less than 12 months need not be registered. This saved the stamp duty and registration money for the lessor and the lessee.

Q: Can the lease for a flat be renewed after 11 months?
A: The lease of the flat can be renewed after 11 months if both parties mutually agree.

Q: If so, how many times can lease be legally renewed?
A: There is no such provision on how many times lease can be legally renewed. The general practice is that the lease is renewed at least thrice consecutively.

Q: What is the basic difference between possession and occupation?
A: As per law, there is a distinction between possession and mere occupation. ‘Possession’ implies control of the property. It could be actual or possession in law. On the other hand, the term, ‘occupation’ is understood in the sense of a physical presence in the premises concerned, usually for a period of time. At times, occupation may amount to possession also; but possession need not always be accompanied by occupation of the premises concerned.

Q: Often, we see owners of the flat removing the person living on lease after 11 months and refusing to renew the lease agreement because they are scared the person might claim ownership rights. Does this happen?
A: Yes, this has happened quite often. However, an owner cannot be forced to agree upon renewing the agreement. There is no such compulsion and provisions in the law. Owners may refuse to renew for various reasons since they may be uncomfortable with their lessee.

Q: Can an owner/landlord terminate a lease agreement mid-way? Are there certain grounds on which he can do this?
A: We need to separate the words owner and landlord. A lease can be terminated midway by the owner, if there are violations related to agreement. These could be exit clauses. However, the grounds of termination by a landlord can be challenged in court since a tenant is occupying the premise for a longer period. It is not easy to terminate midway. The landlord can go for eviction if and only if the grounds are serious and violate the terms of agreement, which have to be proved in court. In Mumbai, the provisions contained under the then Bombay Rents Hotel and Lodging House Rates Control Act, 1947, popularly known as the ‘Bombay Rent Act’ was considerably in favour of the tenants and protected their rights.

Q: Do they have to give the person some notice if they want to terminate the lease? If so, how much notice does an owner have to give a person?
A: Normally, the notice has to be given for at least 30 days. It also depends upon the terms in the Leave and License agreement. The terms of notice clause may vary from agreement to agreement since a Licensee may have shifted with lot of furniture and would have also spend on some part of renovating the flat with permission of the Lessor. In such cases the notice period may be longer than one month.

Q: Are there any kind of guidelines/rules about how much a person can charge as rent?
A: A person can derive the rate of rent based on the Ready Reckoner. However it can sometimes be higher or lower than the Ready Reckoner depending upon furnishings and amenities provided. The common words used while providing furnishings are ‘Hard Furnishings’ and ‘Soft Furnishings’. The Lessor provides these and the rates may hence vary depending upon this factor.

Q: What should one inspect in premises before taking it on rent?
A: Before hiring premises one should get detail information about its condition.
The following should be investigated:

1. >> Foundation, basement and visible structures.
2. >> Water supply, plumbing systems, drainage condition, sanitary and CP fittings.
3. >> Walls, ceilings, paintwork, flooring, type of roofing, etc.
4. >> Continuous electricity supply, electrical systems, functioning of light fittings etc.
5. >> Quality of doors and windows, latches, locks etc.
6. >> Furniture, fixtures and fittings.
7. >> Whether any security systems such as CCTV have been installed for safety.

Q: How often can an owner increase the rent? Can he increase it mid-way or only once in a year?
A: This depends on the terms of agreement. Ideally, the rent is fixed for a period of at least one year. However, in the absence of this clause (increase in rent), it is understood that rent is fixed for a period of one year.

Q: An owner has power over the person who rents his flat. If there is a problem in the flat — maybe there is leakage. Who has to pay for it — the owner or the person renting the flat?
A: Generally, the owner has to pay for the leakages if the leakage is from outside the flat. It is understood that possession has to be given in ‘Vacant and Peaceful condition’. However if the terms of agreement between the Lessee and Lessor state otherwise, then the problem in the flat is to be executed on the basis of these terms and conditions.

Q: Does the person renting a flat have the right to park his car in the building?
A: If the Lessor owns a parking space, then the said parking space can be given to Lessee because that could be part of agreement. However if the open parkings are less, in such scenario the permanent residents have the first right.

Q: Are there certain restrictions an owner can put on a person renting his flat — like no pets, no non-vegetarian food etc?
A: No. There is no such provision in law. This is matter of personal choice whom to lease and whom not to.

Q: Often, we see that people who rent homes abuse the trust of the owner too… how can one stop this from happening?
A: This can be avoided by proper screening before one shortlist’s a Lessee. The Lessor should check the background of a Lessee such as marital status, previous track record, verification of professional status, details about permanent address etc.

Q: If an owner wishes to re-claim his flat mid-way, can he do so?
A: Ideally no, unless the Lessee has violated terms of Leave and License agreement. The common violations that could lead to re-claim are (a) Renovating flat without permission of Licensor (b) Sub-letting (c) Illegal or immoral activities in flat (d) Some anti-national activities carried out in flat and so on.

Q: Does a person renting a flat have to pay monthly rent or the entire sum at one time?
A: This would depend on the terms of the Leave and License agreement. Many Lessors prefer post-dated cheques in advance for the whole year.

Q: The person who is staying on rent, in a building, which has a housing society, is not really the member of the housing society. Does he have any say in housing society matters?
A: The person who is staying on rent in a building, which has a housing society, has no say in the affairs of the society. However, the Lessee can place suggestions in the housing society, which may or may not be accepted by the Managing Committee. It is ideal to keep the owner of the flat informed.

Q: Would you say that a person renting out the flat is a kind of second-class citizen? Without the rights of maybe an owner — even though temporarily at least he occupies the flat?
A: No, but a Lessee is on temporary accommodation. Their suggestions can be considered but not necessary accepted. They are at par with other members of a society, for peaceful use of all services available in society unless it’s a membership of a club in a society, which may not be transferable.

Q: Lots of people who live on rent, do share a happy relationship with the owner…
A: Before signing any Leave and License agreement, a potential Lessee should read the terms and conditions thoroughly. If there are any clauses or sections he or she does not understand, it is important to seek clarification before entering into the agreement. This will help prevent the possibility of misunderstanding regarding the responsibilities and privileges assumed by both parties for the duration of the agreement and help keep the relationship cordial. Like somebody has said, “Having someone wonder where you are when you don’t turn up at your accommodation at night, is a good sign of happy relationship”.

How does \’Lease\’ differ from \’Leave and License?\’
U/s 105 of \’The Transfer of Property Act, 1882,\’ Lease is defined as a transfer of the right to enjoy the concerned property for a pre-defined time period or in perpetuity. The Lessor (owner of the property) gives the Lessee (the one leasing the property) such consideration periodically, usually at the beginning or end of a lease agreement. U/s 52 of \’The Indian Easements Act, 1882\’, Licensee does not allow any interest in the premises on the licensee\’s part. It merely gives the licensee the right to use and occupy the premises for a limited duration. A lease deed needs to be stamped and registered. The amount payable as stamp duty towards the lease deeds is generall
y more than that payable towards the Leave and License\’s. For a period exceeding three years, the stamp duty is same for both agreements. A Leave and License arrangement ensures a regular periodic renewal of the terms, which as a rule effectively safeguards the interest of most homeowners as opposed to leasing out a property.

From: Midday newspaper

Illegal constructions on Palm Beach road Navi Mumbai

21 Palm Beach buildings illegal

Chief minister Prithviraj Chavan admitted in the state assembly on Tuesday that 21 of the 23 Palm Beach Road high-rises under probe have violated construction norms, putting the heat on Navi Mumbai builders.
A three-bedroom apartment on Palm Beach Road, often called the ‘Queen’s Necklace of Navi Mumbai’, can cost upwards of Rs 1 crore. The chief minister’s admission threatens to expose the web of malfeasance that besets the real estate sector in the satellite city.
Earlier this year, the Navi Mumbai Municipal Corporation (NMMC) had found 23 high-rises on Palm Beach Road in violation of floor space index (FSI) norms. It ordered their developers to either regularize the illegal additions, such as extra floors, or demolish them. Heeding the warning, a few builders made a handful of corrections; the rest did not. The NMMC, however, is yet to raze the remaining unauthorized extensions. NAVI MUM BUILDERS UNFAZED BY PROBE Developers Claim ‘Minor Alterations’ Are Not ‘Gross Illegalities’, Feel Singled Out By Authorities The NMMC passed on the names of 23 towers in violation of FSI norms to the chief minister. TOI has a copy of the list. Among the buildings found in the wrong are Venus (under scrutiny for three extra illegal floors), Shagoofa and Vanashree in Nerul’s sector 58A. In Sanpada’s sector 18, the errant builders include Bhumiraj Constructions, Sai Homes, Paradise Makers and Sea Queen.

Palm beach residency

Maharashtra Navnirman Sena members Prakash Bhoir, Nitin Bhosale, Harshvardhan Jadhav and Ram Kadam recently filed a query on the issue, which came up for discussion on Tuesday during zero hour. Replying to the query, Chavan admitted that 21 high-rises had violated FSI rules and that a notice for demolition of the illegal floors was served on March 18 this year.
When prodded on why no demolition action had been initiated since, Chavan assured the House that strict action would be taken against the guilty. He however added that in five cases developers had submitted proposals for regularization of the illegalities. “They will be regularized if legally permissible,” he said.
When MNS members demanded action against officials who allowed the illegal constructions, Chavan said that a CID probe was already going on.
During the discussion, the BJP’s Girish Bapat demanded criminal action under provisions of the Bombay Provincial Municipal Corporation Act. He contended that action under the Maharashtra Region and Town Planning Act had failed to deter culprits.
Navi Mumbai’s Congress corporator Dashrath Bhagat criticized the government’s action. “Why is there a CID probe into just 21 towers on Palm Beach Road? I am sure there are many buildings in the city which need to be scrutinized by the NMMC and Cidco for blatant FSI violations.”
NMMC commissioner Bhaskar Wankhede said: “I am aware of the (CID) probe. The NMMC had submitted its report regarding Palm Beach Road towers to the CM.”
TOWERING VIOLATIONS
The NMMC this year found 23 buildings on Palm Beach Road in violation of FSI norms.

Buildings constructed on Palm beach road

Here are their addresses and the names of their developers:-

• Moraj Finance Corporation Plot no. 8 and 8A, Sector 17, Sanpada
• Bhumiraj Construction Plot nos. 1 and 2, Sector 18, Sanpada
• President Construction Plot no. 3, Sector 18, Sanpada
• Sai Homes Plot no. 4, Sector 18, Sanpada
• Paradise Homes Makers Plot no. 5, Sector 18, Sanpada
• Sea Queen Developers Plot no. 6, Sector 18, Sanpada
• Bhumiraj Construction Plot no. 1, Sector 19, Sanpada
• Abhishek Enterprises Plot no. 2, Sector 19, Sanpada
• Shree Dinshaw Developers Plot no. 3, Sector 19, Sanpada
• Kesar Housing and Developers Plot no. 5, Sector 19, Sanpada
• Palm Beach Builders & Developers Plot no. 20, Sector 6, Nerul
• Jay Balaji Co-op Housing Society Plot no. 26, sector 6, Nerul
• Vignahar Developers Plot nos. 5 and 6, Sector 14, Nerul
• Punit Paradise Co-op Housing Society Plot no. 7, Sector 14, Nerul
• Sagar Darshan Co-op Housing Society Plot no. 38, Sector 18, Nerul
• Home Builders Plot nos. 3 to 10, Sector 36, Nerul
• Mrs. Shailaja Narayan Mhatre Plot no. 133, Sector 36, Nerul
• Pamgro Sahakari Grihnirman Sanstha Plot no. 134, Sector 36, Nerul
• Akshar Developers Plot nos. 1, 1A, 1B and 1C, Sector 46A, Nerul
• Gahlot Construction Plot no. 3A, Sector 46A, Nerul
• Vanashri Co-op Housing Society Plot nos. 1 and 2, Sector 58A, Nerul
• Shagufa Co-op Housing Society Plot no. 5, Sector 58A, Nerul
• Venus Grihnirman Sanstha Plot no. 8, Sector 58A,Nerul
• Palm Beach Residency by Wadhwa

MAKING ROOM FOR MANIPULATION

• Ignored fire safety norms
• Illegally constructed additional floors
• Covered the stilt area meant for parking
• Extended rooms into flowerbeds
• Unlawfully built rooms or offices on top floors
• Constructed toilets or servant rooms on mid-landing using additional FSI
• Covered the lobby without permission
• Put up doors or gates that did not exist in original plans
• Placed generators in the parking space
• Illegally built additional balconies or terraces

In the past the issue of FSI norm violations was raised in the Navi Mumbai Municipal Corporation (NMMC) in 2010. Standing committee members Shivram Patil and Dashrath Bhagat claimed that illegal extensions had been made in almost 350 towers

In Nov 2010, Navi Mumbai municipal chief Bhaskar Wankhede asked the town planning department to submit a report within two months on violations of FSI norms laid out by the state urban development department

Three teams were formed under the town planning department’s assistant director Sanjay Banait, each consisting of two engineers.
The teams found 23 builders defying regulations

In February this year, the NMMC issued show-cause notices under clause 53(1) of the Mumbai Town Planning Act 1966 to 23 builders.

On March 18, 2011, the anti-encroachment department served them a one-month notice. The NMMC ordered the builders to regularize the unauthorized constructions or demolish them

A few builders made some corrections. The NMMC is yet to raze the other illegal extensions.

Advisory For Flat Buyers

1. Ensure the property has a clear title
2. Study the property thoroughly
3. Inspect the builder’s track record and talk to owners of flats in his prior projects
4. Avail a token loan from a nationalized bank
5. Ensure the project has all permissions
6. Ask for a bar chart of the various stages of construction
7. Ensure there are negative covenants
8. Get the building architect to certify the flat’s carpet area and consult a professional to check the building plan
9. A builder cannot sell open/stilt car parking space or pocket terrace.

Vijay Singh,Falguni Banerjee & Sandeep Ashar TNN (Times of India).NaviMumbai/Mumbai:

How to reduce home loan interest rates

When Delhi-based Mahendra Gupta opened the recent letter from the housing finance company, there was both good and bad news for him. The dismal bit of information was that the 20-year home loan he had been repaying since 2008 still had 22 years to go. Despite four years of regular repayments, the loan tenure had been extended because of the rise in the home loan rate from 10.25% in 2008 to 13% now. The good news was that Gupta\’s lender was ready to convert the loan to a lower rate if he paid a one-time conversion fee. He paid Rs 7,300 and got the interest rate lowered to 10.5%. \”My loan tenure came down from 272 months to 166 months. It was a straight gain of almost nine years,\” gushes the 35-year-old. Gupta can consider himself lucky. Not every lender offers its customers this option. Worse, very few keep their customers updated about changes in interest rates or how they impact their repayment schedules. Most banks just go by the wording of the loan agreement, which says the lender can increase the rate and accordingly extend the repayment tenure. If the term cannot be extended, the bank raises the EMI amount or asks the borrower to pay a lump sum. Be a proactive borrower You need to be proactive about your loan repayment and check the interest rate you are being charged. When the base rate was introduced, home loan customers thought they would get more transparent deals from their lenders. However, many banks continue to discriminate between old and new customers, charging the existing ones a higher rate than that being offered to new borrowers. If you are being charged a higher rate, ask your bank to convert it to the rate applicable to new borrowers. Don\’t assume your bank will not listen to your request. A slowdown in growth and intense competition in the housing finance sector have pushed banks to the wall. Home loan growth has slowed down from 15% in 2010-11 to 12.1% in 2011-12. More importantly, the RBI has abolished the prepayment penalty levied by banks and housing finance companies. So, shifting to another bank is not as costly as it used to be. \”The RBI move has boosted borrowers\’ ability to negotiate,\” says Kapil Narang, chief operating officer, Ameriprise India, a financial planning firm. Banks are willing to negotiate, especially if the borrower has a good repayment history. If a bank refuses to budge, a mild threat of shifting the loan to another lender can work wonders. \”There are instances where banks have offered to cut rates when the clients expressed their intention to transfer the loan to another bank,\” says Vipul Patel, director, Home Loan Advisors, an independent mortgage consultancy firm.

Balance tenure is crucial. Keep the remaining term of your loan in mind when you sit at the negotiating table. When Gupta got his interest rate converted to 10.5% from the earlier 13%, his tenure of 22 years and 8 months was cut down by 8 years and 10 months. Remember that if your loan has less than 10 years to go, the benefit may not be as spectacular. As the table shows, the benefit progressively reduces if your balance tenure is lesser. A 1.5 percentage point cut in the rate will shave off nearly five years from a 20-year loan, but it will reduce the tenure by just 1 month if the loan has only five years to go. Since you are paying a conversion fee upfront, the change may not lead to any significant gain. Go for it only if the reduction is at least 2 percentage points and your loan has more than 10 years to go.

Cut the tenure, not the EMI, When the interest rate on your loan is lowered, don\’t make the mistake of reducing the EMI. It\’s a tempting thought because it eases the pressure on your monthly budget. However, lower EMIs mean longer tenures and higher interest costs. Instead, bring down the tenure of the loan. \”Our standard advice is to avoid reducing the EMI amount. As far as possible, one should opt for cutting down the loan tenure,\” says Patel.

Only if you genuinely find it difficult to pay the EMI, should you opt for a lower instalment.

This is especially true of individuals who have taken a large home loan on the basis of a projected income, but have not got the kind of pay hikes they expected.

Also, double-income families, where one spouse has lost a job or stopped working, may find this option useful.

Besides, you should check if the new rate that is being offered to you is linked to the base rate of the bank. Make sure it is not a promotional rate that is being offered to new customers. Banks offer low rates to attract customers but hike the rate after 2-3 years. Since home loan tenures are typically 10-15 years, don\’t go by just the short-term benefit offered on the loan. The loan agreement should clearly specify the spread between this rate and the bank\’s base rate.

The cost of change

Don\’t think you can opt for a new and lesser interest rate for free. This conversion entails a minor cost, with banks charging 0.5-1.5% of the outstanding amount (see graphic). It is also a fairly straightforward procedure, which can be completed with one visit to the bank branch.

However, switching to a new bank is a lot costlier and requires more paperwork. Even if your previous lender does not levy a prepayment penalty, the new lender will demand 0.5-1.5% as processing charges. There is also the convenience aspect. You will have to go through the entire process of submitting documents-proofs of income and identity, and PAN card, etc. Therefore, do a cost-benefit analysis before deciding to convert or switch to another lender.