Maharashtra government notifies new cluster policy for Mumbai

The state government has notified the long-anticipated cluster development policy for the island city, ending recent uncertainty over whether it would be further delayed on account of the assembly polls due next month.

The policy notification was cleared by the cabinet on Tuesday without an increase in the floor space index (FSI) that was proposed at 4 to make redevelopment of old and dilapidated buildings viable.

Why was policy delayed?
The policy is subject to the decision of the Bombay High Court that is hearing a public interest litigation (PIL) on this matter.

The court had said in an interim order end July that cluster development would be allowed by civic bodies only after impact studies were carried out to know whether the cities had the capacity to take on the additional burden.

Are there any major changes?
Under the new policy announced on Tuesday, no clusters shall be identified for redevelopment without an impact assessment study regarding the load on infrastructure and necessary amenities as well as the traffic and environment for implementation of the projects.

There are more than 16,000 old and dilapidated buildings in the island city.

Is the new policy final?
Official sources said the policy is subject to the decision of the court and if it directs any changes they will be incorporated.

"If there are any changes or suggestions by the court they will be incorporated in the modified cluster development policy," an official said. However, the policy is in effect from the date of notification and henceforth developers and promoters can go ahead with their projects according to the process laid out under the Urban Renewal Scheme.

What are the highlights?
The notification replaces the earlier regulation 33(9) under the Development Control Regulations for Greater Mumbai dealing with reconstruction and redevelopment of cessed buildings and the urban renewal scheme.

Under the new cluster policy, redevelopment would be allowed only for buildings and structures on a minimum area of 4,000 sq m (or about one acre). The property must have access by an 18m wide road.

The buildings to be redeveloped – whether under Mhada, central of state government, or their institutions, and tenanted civic structures – must be at least 30 years old or certified unfit or dangerous for human habitation.

What about residents' consent?
Applications for acquisition of such properties would be considered by an empowered committee headed by the chief secretary that would examine the request made in terms of need and desirability and decide the terms of transfer.

Clearance for redevelopment would also require the consent of not less than 70 per cent of the eligible tenants of all authorised buildings on each plot involved.

What are the benefits for tenants?
Each tenant or occupant shall be rehabilitated with an ownership flat of carpet area not less than 27.88 sq m. The bigger the scheme the bigger would be the entitlement going, up to 30 per cent more area for projects above 10 hectares.

Developers must also create a corpus fund for maintenance of the rehabilitated residents that would be large enough to meet the expenses for at least ten years.

Is there any provision for old projects?
"A developer who has already undertaken the 33(7) individual building development can convert the project into the 33(9) cluster scheme by meeting the given criteria. If there are any heritage grade I and II structures in the proposed scheme, the developer has to protect and safeguard these structures," the notification said.

According to sources, chief minister Prithviraj Chavan was against allowing forceful acquisition of properties and this compulsory acquisition clause has been removed.

"After the recent court stay order on cluster development, a technical issue also arose on whether the notification should be issued or not? But we resolved that by making it subject to the court order. Now redevelopment projects in Mumbai city will not get stuck for technical reasons," said a senior government official.

What are the reactions?
Amin Patel, Congress MLA from Mumbadevi, welcomed the modified policy. "There are thousands of old and dilapidated buildings. It is very difficult to redevelop these buildings individually. If they are reconstructed under the modified policy tenants and owners will get bigger houses and facilities," said Patel.

The PIL was filed by Dattatray Daund, a Thane resident, alleging that two civic bodies had allowed cluster redevelopment in their areas without undertaking an impact assessment study.

The court had asked the authorities to file a reply but it did not receive a reply within the stipulated time and this led to it staying the operation of the policy.