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New hurdle for cessed buildings in Mumbai

The fate of umpteen cessed buildings and dilapidated structures lies in limbo now as the civic improvements committee on Friday rejected the newly drafted lease policy by the civic administration.

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The fate of umpteen cessed buildings and dilapidated structures lies in limbo now as the civic improvements committee on Friday rejected the newly drafted lease policy by the civic administration.

The Brihanmumbai Municipal Corporation’s (BMC) policy had proposed the cancellation of an occupant’s lease terms after the redevelopment of a building.

It proposed that after the redevelopment work, a new lease agreement would be signed wherein the lease will be renewed for either 30 or 99 years.

“The revised policy still hasn’t provided clarity on the time frame of lease period. This is leading to a lot of ambiguity,” said

Balchandra Shirsat, chairman, improvements committee.
Citing that the policy’s provisions were clashing with an earlier high court verdict on land leased by the BMC, committee members asked BMC to draft fresh provisions. Withholding the policy will primarily affect leased plots.

Redevelopment of old buildings cannot proceed until a clear policy has been framed.

There are 3,395 municipal plots that have been given out on a perpetual lease of around 999 years.

If such structures opt for redevelopment, their lifelong lease period will be terminated and changed to just 99 years. 

“How can you change the period of lease that you have specified in the agreement? If the lessees go to court, this policy will not even stand in court,” said Manoj Kotak, BJP corporator.

However, the plan to slash the transfer fee charged by the BMC on these plots was sanctioned. Meanwhile, the corporators also rejected the policy for redevelopment of markets.

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