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Rs 3.5K-cr redevelopment project stuck in red tape

In the cluster redevelopment (33.9 scheme), the minimum requirement of land area is 4,000 sq mts or 1 acre with a floor space index of 4

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The unrealistic norms and red tapsim by the state government in the cluster redevelopment policy resulted in the delay of the redevelopment of Bhendi Bazar project that caused the building to collapse at Pakmodia Street.

The Saifee Burhani Upliftment Trust (SBUT) had undertaken the 17.5-acre Bhendi Bazar cluster redevelopment project in 2009.

"It has been almost eight years, we are still toggling back and forth in this Rs 3,500 crore project," said a project person requesting anonymity.

In the cluster redevelopment (33.9 scheme), the minimum requirement of land area is 4,000 sq mts or 1 acre with a floor space index of 4. The tenants will get 350 sq ft of the carpet area in redevelopment. SBUT had decided to redevelop this land in nine sectors where 3,500 tenants including 1,300 commercial tenants will be rehabilitated.

"The construction work for sector 1 and 3 has started. Sector 2 has received permission, construction has not started. The collapsed building from sector 9 had already been declared dangerous but tenants were reluctant to move despite several requests," said an official of the project.

He said that they have been facing major hurdles including paying the government for the land. "In this project, the old house gallies area are owned by the collector — state government, nearly 1,700 sq mts. As per the government policy, in redevelopment, the promoter has to either return the same portion of the land to government or pay 100 per cent land value as per the government rates. It is difficult to get vacant land in Mumbai while at the same time it is also impossible to pay the 100 per cent value.

"We offered them 25 per cent of the total land value as per the government rates. But this request file has been gathering dust for last four years. This is one of the major reasons for the project delay," said an SBUT official.

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