Builders selling MHADA NOCs for a fortune

Housing authority to take action against those who are trading permission to redevelop
MHADA societies for crores
Alka.Shukla @timesgroup.com

Residents of a Maharashtra Housing Area Development Authority (MHADA) colony

decide that it’s time their society needs a face-lift. A deal is struck with a well-known
developer – from facilities to the residents to benefits to the builder. The housing body is
approached for a No Objection Certificate (NOC) allowing the builder to redevelop the
entire plot. The developer illegally sells the rights to another developer for a heavy profit
– to the tune of hundreds of crores.

This has become a common trend in the city – with builders looking to make some
quick buck through the lucrative redevelopment business – and MHADA has decided that
it's time to put a stop to it. According to MHADA, while the practice helps developers
mint hundreds of crores keeping the housing body in the dark, the residents usually end
up getting a raw deal.

“An NOC is given considering several factors, including the credibility of the builder.
But when he sells it to another firm, we are not even intimated. We have taken
cognisance of such cases and we’ll see how a legal action can be taken,” said Amarjit
Singh Manhas, chairman, Mumbai Board.

In fact, the issue was dominant Friday’s MHADA board meeting. Member of
Legislative Assembly Krishna Hegde, who raised the issue at the meet, cited the example
of MHADA’s Siddharth Nagar society in Goregaon (West), where HDIL took on the
project but now is allegedly selling a part of the project to Kalpataru for a few hundred
crores. The colony is spread across 45 lakh sq feet.

DN Nagar colony in Andheri is another such example. While an NOC was given to
Vaidehi Akash Builders, now Rustomjee builders has entered the picture.

“The change of developer can only happen with the consent of the society, which in
turn has to intimate the MHADA board and take its approval. However, it does not
happen. With the original builder selling off rights to redevelop the MHADA colony to
another one for a heavy profit, there are chances that the new firm may not abide by the
agreed terms and residents may get a raw deal,” Hegde, a MHADA board member said.
 “We will be sending out notices to all societies who’ve applied for NOC spelling out
that if the developer is changed without any intimation to the board strict action will be
taken. In cases where even residents haven’t been kept in the loop by builders, we will
initiate appropriate action,” Manhas added. More than 170 societies have applied to
MHADA for NOC since September 2010.

With MHADA making it mandatory for all 56 colonies on its land to go in for
redevelopment, the housing body fears such cases will only increase. While MHADA is
pursuing redevelopment to boost the city's affordable housing stock and is expecting
15,28,032 sq metres of constructed area through this, officials fear the plan could become
another money spinner for the developer community.
BUILDERS, ARCHITECTS on HC radar for
flouting rules
Court Asks BMC For List Of Violators Of Construction Norms
Hetal Vyas TNN

Mumbai: The Bombay High Court has directed the Brihanmumbai Municipal
Corporation (BMC) to submit a list of builders in the city who flouted the law when
carrying out constructions. It also sought information on action taken against architects
for violating building norms.
A division bench of Justice P B Majmudar and Justice Amjad Sayed on Monday
granted four weeks to the BMC to prepare the list of erring builders. The civic body has
also been directed to state in an affidavit the number of builders prosecuted by them so
far. “Give us particulars of the number of builders prosecuted by you (BMC) and publish
the names of builders who have been blacklisted by you in newspapers,” observed the
court. BMC counsel Anil Sakhare sought time to submit the list.
The court also directed the Delhi-based Council of Architecture to instruct its members
to be careful while allowing their clients to carry out constructions across the country. “If
constructions are in violation of local norms then the architects should be made to lose
their licences. You should give this message to all your members by giving publicity in
newspapers in four weeks,” remarked the court. The counsel for the Council of
Architecture informed the court that they will take action against guilty architects after
scrutinising complaints sent to them.
The court has also directed BMC to inform if any steps have been taken by it against
any architect for violating building construction laws.
It observed that the BMC should take strict action against the builder or party which
goes ahead with construction after receiving a stop-work notice. “You should not
regularise such structures,” said the court.
The court was hearing a petition filed by the Malad-based Balaji International School,
which was also accused of encroachment. The school moved the HC last year after the
BMC demolished an electric sub-station in their compound causing power failure.

The court pulled up the school’s architect Umesh Bhat, who was present for hearing.
However Bhat in his defence said that he had written to the BMC from time to time and
to the school and informed Balaji International not to go ahead with further construction.
The court will now hear the case again on March 31.