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REDEVELOPMENTOF HOUSING SOCIETIES.....WHAT IS REDEVELOPMENT THAT EVERY SOCIETY WANTS TO KNOW?
To/Against/For: REDEVELOPMENT PROJECTS IN MUMBAIREDEVELOPMENTOF HOUSING SOCIETIES.....WHAT IS REDEVELOPMENT THAT EVERY SOCIETY WANTS TO KNOW?
Redevelopment is the process of demolishing existing old society building and reconstructing it by appointing a good Developer who can construct and handover new flats to the society members free of cost with some additional benefits and make profit by utilizing balance plot potential by constructing additional flats and shops as per approval from M.C.G.M.
Today the societies are opting to go for redevelopment for certain reasons such as the repair work can increase life of the building by 3 to 4 years and the problems can reoccur after few years, the old buildings are designed with old construction norms and hence cannot withstand with new climatic and geographic conditions, for repairs members have to spend money and in old building the steel inside concrete beams and column starts corroding after 15-20 years which cannot be treated in repairs.
On the other hand, the redevelopment gives a new building for which no major repairs required for longer period, new building is constructed with new construction norms and hence can withstand with new climatic and geographic conditions, the members get benefits in terms of money as well as additional area with latest amenities.
The Redevelopment method though within last few years that has hit Mumbai with great potential but has, by and large, also seen disagreement from members of the Society time and again. Redevelopment projects have often collapsed due to the growing demands of the members in majority. There is a high level of diffidence amongst the members when the idea of Redevelopment is proposed. There is persistent fear of insecurity whether the Builder will deliver the redeveloped property or leave it intermediately.
As we all know that the Builder is earning generous amount out of a Redevelopment project and hence, the members start becoming more desirous at times. There are rounds of negotiations before a time to finalize the conclusive agreement is reached. The major reason for failure of many Redevelopment projects is that the members themselves don’t trust the Office Bearers and Members of their Managing Committee.
As the Managing Committee handles the entire process, often there is a suspicion of their being hand in gloves with the Builder and at times, it is assumed to have been true as the Managing Committee members also look forward for their life time personal gains rather than ensuring a fair deal for members or the corporate interest of the Society.
First and foremost, the Housing Society members must ensure that their Office-Bearers and the members of the Managing Committee are elected as per the provisions of Maharashtra Co-operative Societies Act, Rules and Bye-Laws. In short, please ensure that the entire Managing Committee is lawfully formed.
Secondly, it is learnt that in many Societies, the Managing Committees, who execute the documents with the Developers, do not possess any legal holding as they have never filed/nor aware of filing the Indemnity Bond in Form M-20 on a Stamp required under Section 73(1AB) and Rule 58A of the Maharashtra Cooperative Societies Act 1960.
The members who fail to execute such Bonds within the specific period are deemed to have vacated his office as a member of the committee and no legal effects can be given to the documents executed by them with the Developers and the entire exercise of redevelopment efforts will come to a zero if the mandatory filing of Indemnity Bonds in Form M 20 is not filed within 15 days of their assuming the office (within 45 days with effect from 14/1/2011). Even a delay of one day and the entire Managing Committee including Office Bearers shall have no legal footing to run the Society!
Redevelopment of Housing Societies is usually burdened with bitterness and complaints of high-handedness and corruption against the Managing Committee. Hence, with a view to ensure transparency in societies seeking to undertake redevelopment projects, the state co-operative department has, for the first time, issued guidelines for societies to follow under section 79 (A) of the Maharashtra Co-operatives act, 1960.
The guidelines are issued by a committee comprising the co-operatives commissioner and CIDCO chairman pursuant to a deep study of complaints by members of Housing Societies undertaking the redevelopment of their property. According to an important feature in the guidelines, a redevelopment scheme has to be approved by the general body only if three-fourths of the society members are present at the meeting.
The special general body has to approve the bid of the successful bidder in a meeting attended by the registrar. The entire proceeding has to be video-recorded. Once the agreement is accepted in terms of area and corpus fund, it cannot be revised. The successful bidder has to give a bank guarantee equivalent to 20% of the total project cost to show his financial strength, and proof that he will not throw away the project midway.
The Developer has to complete the redevelopment project in two years, or a maximum of three years. The Development Agreement must be signed on carpet-area basis. Most importantly, if, for some reason, the successful Developer is unable to complete the project, he cannot sell or assign his redevelopment work to another Developer.
It has been often noticed that during the process of redevelopment, the terms of Development Agreements as agreed upon, are later twisted and grossly violated by the Developers and the ground rules of MRTP and DCR by unlawful planning are flouted by constructing additional/unauthorized areas that are beyond the entitlement (i.e. beyond the plot FSI and the TDR/FSI loaded) for their hidden financial gains. The buyers of such unlawful flats/properties land themselves in deals that lead to litigation at a later date.
At times, upon the completion of the Project, there are major inconsistencies and discriminatory features noticed in the approved plans v/s actual layouts, measurements and other aspects in respect of the constructions of residential area and the commercial area which may not be in conformity with the Development Agreement originally executed between the Society and the Developer.
Under Right to Information Act, the Housing Society can procure all the Plans and the related documentary evidences from MCGM duly attested by two Senior Engineers of the Building Proposals Dept. to study the anomalies which exist in execution of the entire redevelopment project even after the occupancy certificate is issued.
It has also been observed that the deviation of vital Rules and Guidelines of MRTP/MCGM/DCR are conveniently overlooked by few corrupt and dishonest but “Sympathetic Officials” of MCGM and the final plans with numerous anomalies so submitted by the said Developer are approved by them without verifying the justifiability or its conformity with the Development Agreement executed with the Society.
IMPORTANCE OF PROJECT MANAGEMENT CONSULTANT IN REDEVELOPMENT
Documents required to be furnished by the society to the Developer: Conveyance deed, Society Registration Certificate, General Body Resolution to go for redevelopment, List of member with their respective carpet areas. C.T.S. plan & property card for the plot, D.P. remarks, if the property is under TPS scheme then T.P. remarks and Copy of municipal approval plans
The importance of Project Management Consultant in Redevelopment: A consultant is basically a team of Architects, Civil Engineers and Legal Advisors.
An Architect is required to prepare financial feasibility of project, Technical Analysis of offers of Developers, verifications of building plans prepared by the Developers and preparation of schedule of municipal process with Developer.
The civil Engineer is required to cross check R.C.C. drawings of the proposed building and check onsite quality of the construction.
Legal Advisor is required to prepare development agreement and individual MOFA agreements of society members of Developers and check other legal aspects of the proposal.
A well adept Project Management Consultant can guide the society through entire process of redevelopment so that the members can get the maximum benefits from the builder and at any stage of redevelopment members do not get cheated by the Developer. Some of the duties of Project Management Consultant are given hereunder.
Preparation of financial and technical feasibility report by studying existing building plans, consumed FSI, carpet area of existing members & available TDR/ additional FSI benefits so that maximum benefits the members can demand from the Developers.
Preparation of Tender document: "Tender" is a crucial document, which is to be designed meticulously to avoid any kind of misunderstanding/argument during the course of project. It contain various information to bidder, technical and financial specifications, general conditions and detailed specifications which makes it easier to evaluate the offers received since they are given on the same base.
Preparation of comparative chart of Developers: A chart showing the comparative analysis of all the offers is to be prepared to get the idea of the best offer received. Ranking shall be given to Developers.
Finalization of Developer: On the basis of ranking, the projects carried out by the Developers inspected, their market reputation checked and accordingly the best Developer is recommended to the society.
Preparation of Development Agreement: While preparation of Development Agreement between society and Developer inputs are given in terms of technical clauses which would Safe guard the interest of the society and safety of the project.
Finalization of building plans: The plans of proposed building prepared by the Developers are to be verified in respect of planning, carpet area, area calculations, legalization and authorization of the area allotted to the members.
Vacating the building after the builder obtains the necessary permission: The care taken that the necessary permissions are obtained and legal formalities are fulfilled to secure the project by the Developer before he ask the members to vacate the premises so that the project doesn't stuck up after demolition of the building.
Demolition and reconstruction of building: After demolition and during construction of building the regular inspection is carried out to check the quality and speed of the construction.
Possession and occupation of building: During construction of building co- ordination with the Developer shall be done to see that all the formalities for the occupation of the building are fulfilled and members get possession with the occupation certificate.
Preparation of Feasibility Report: A feasibility report shall be prepared by studying the plan, by applying the FSI & TDR rules, considering maximum benefits the member can demand from the Developers, a report will be submitted by the society.
Preparation of Tender for Redevelopment: "Tender" is a crucial document, which is to be designed meticulously to avoid any kind of misunderstanding/argument during the course of project. It shall contain an agreement, technical and financial specifications, general conditions and detailed specifications and only reputed builders are invited for the project bid.
Selection of Developer: After detailed study of various bids, considering technical and commercial angle a bid comparison chart is prepared and after short-listing some Developers for interview and negotiations and over mutually acceptable Developer is finally selected to carry out proposed work.
Project Planning: After placing of work order the Developer is asked to prepare a detail work schedule and the entire project is planned with deadlines.
Verifications: In most of the projects the Developer/builder shows some plans to the society and gets approved different plan; so afterwards society is left on the mercy of BMC officials. The Project Management Consultant would verify the plans of building prepared by the Developers for the society members in respect of planning, area calculations, legalization and authorization of the area allotted to the members. Any alteration in the plans of society building prepared by builder should be to the satisfaction of society members.
Quality controls: A regular visit of a project manager is required at least 3-4 times a week. Maximum emphasis is to be given on the quality of the constructions to avoid recurring expensive repairs afterwards. The project management consultant should supervise the quality of constructions and verify the structural plan, necessary instructions/specifications has to be issued to contractor as per the requirements of the structure to have long lasting durability.
Inspections: Inspecting whether the work has been carried out as per approved plans and as per commitments made by the Developer with the society and whether all the necessary approvals are obtained by builders at every stage of the works.
PROJECT MANAGEMENT CONSULTANCY SERVICES IN BRIEF:
v Arranging Soil Testing of the site
v Preparation of Detailed Brief for the preparation of concept proposals by the architect
v Selection/appointment of the architect, structural consultant, electrical consultant, sanitary consultant and execution of agreement with them
v Scrutiny of Concept Designs proposed by the architect and approval of the concept
v Arranging the coloured perspectives of the concept scheme and arranging Model
v Preparing Preliminary Cost Estimates for the total construction work
v Review/Approval of design work carried out by the architect and respective consultants.
v Co-ordination of design work between different consultants
v Monitoring the receipt of all the pre-construction NOCs, clearances permissions, sanctions from corporation, storm water, sewerage, electrical, garden, civil aviation, ULC, road and traffic dept. Etc
v Finalizing the specifications for the different items of work
v Arranging/co-ordination establishment of all temporary facilities at the project site
v Preparation/Review/Finalization of Bill of Quantities for different items of work in respect of all the trades
v Preparation/Review/Finalization of Detailed Tender Documents for all the trades
v Short listing / prequalifying the contractors for various trades
v Invitation of tenders, scrutiny of bides, clarification to queries, making comparative statements, negotiations with bidders, evaluation of prices and finalizing the contract for all the trades.
v Preparation of contract documents and execution of the same by the contractors
v Preparing schedules of materials in respect of items proposed to be procured by the employer/supplied to the contractors
v Managing procurement of the above stated materials, cement, steel, tiles and any other materials required to be issued to the contractors, including inviting quotations, negotiations, finalization of rate contracts, placement of purchase orders, inspection of materials and settling the bills of the suppliers.
v Detailed supervision of contractors works at project site.
v Co-ordination between different contractors
v Monitoring/expediting the progress of contractors through project management techniques
v Checking/certifying contractor's running and final bills and settlement of claims of the contractors
v Preparation of progress reports
v Arranging 'as built'/User Manual drawings, of all the trades
v Arranging all POST CONSTRUCTION APPROVALS
Apart from the above, the Project Management Consultants can also arrange and co-ordinate with Financial and Legal Services which are equally important for a successful completion of any Redevelopment project.
FINANCIAL SERVICES
v Preparation of Financial Feasibility Reports
v Managing Financing of the project from Financial Institutions
v Handling books of accounts up to finalization including profit and loss a/c and balance sheet
v Handling all accounting matters during the progress of Redevelopment
v Handling property and other taxation matters and filing of Returns.
v Budgetary Controls
v Ratio Analysis
v Preparation of Cash Flow Statements
LEGAL SERVICES
v Ascertaining correctness of Land ownership records (Title, P.R. Card, etc) in the name of the present owner.
v To get the road setback areas and other reserved areas transferred in the name of local bodies, as per local laws.
v To arrange conversion of land usage as per local laws
v To get NOCs, sanctions, approvals from Heritage Committee, as applicable
v To deal with Transfer of Development Rights matters, as applicable
NON-DESTRUCTIVE EVALUATION TESTS:
Non-destructive testing (NDT) are non-invasive techniques to determine the integrity of a material, component or structure or quantitatively measure some characteristic of an object. In contrast to destructive testing, NDT is an assessment without doing harm, stress or destroying the test object. The destruction of the test object usually makes destructive testing more costly and it is also inappropriate in many circumstances. NDT-CE, Non-Destructive testing in Civil Engineering plays a crucial role in ensuring cost effective operation, safety and reliability of reinforced concrete or pre-stressed concrete structures
Concrete Strength Assessment:
v Rebound Hammer Test
v Ultrasonic pulse velocity test
v Core sampling & Testing
Chemical Tests:
v Carbonation test
v Chloride content
v Corrosion potential assessment:
v Cover meter survey
v Half cell potential survey
v Resistively measurements
BEWARE OF MANIPULATIONS
It has been often noticed that during the process of redevelopment, the terms of Development Agreements as agreed upon, are later twisted and grossly violated by the Developers and the ground rules of MRTP and DCR by unlawful planning are flouted by constructing additional/unauthorized areas that are beyond the entitlement (i.e. beyond the plot FSI and the TDR/FSI loaded) for their hidden financial gains. The buyers of such unlawful flats/properties land themselves in deals that lead to litigation at a later date.
At times, upon the completion of the Project, there are major inconsistencies and discriminatory features noticed in the approved plans v/s actual layouts, measurements and other aspects in respect of the constructions of residential area and the commercial area which may not be in conformity with the Development Agreement originally executed between the Society and the Developer.
It has also been observed that the deviation of vital Rules and Guidelines of MRTP/MCGM/DCR are conveniently overlooked by few corrupt and dishonest but “Sympathetic Officials” of MCGM and the final plans with numerous anomalies so submitted by the said Developer are approved by them without verifying the justifiability or its conformity with the Development Agreement executed with the Society.
COMMENCEMENT CERTIFICATE
Demolition of the building: Once the members have shifted into their alternate accommodation, the demolition of the building will take place either all the wings simultaneously or phase wise depending upon the scheme of re-development. Usually about three months are given to the members from the date of execution of the development agreement before asking them to shift to the alternate accommodation.
Obtaining the CC: The IOD approval and demolition of the building will be followed by the issue of the CC (plinth level) by the MCGM which shall enable the Developer to start the construction work and after the plinth lines are verified by the MCGM officers, the further CC is granted for the complete building
DUTIES AND FUNCTIONS OF THE DEVELOPER
The Developer to demolish the building existing in the plot and construct new multi storied buildings taking into account the earthquake resistant factors as directed by The Municipal Corporation of Greater Mumbai. The new building should have stilt for car parking and should consist of _____ stories as per approved plans. The final plans are to be prepared after due consultation with the managing committee and understanding their requirements.
The Developer shall be responsible to obtain all the necessary approvals from The Municipal Corporation of Greater Mumbai and all other statutory and Government offices and departments which will include:
v Development Planning Remark or Town Planning Remark: MCGM (Dev. Dept.)
v Survey of the entire plot with regards to the area and topography of the plot, existing plot boundary and existing structures (Developer’s Architect)
v Intimation of Disapproval (IOD): MCGM
v Property Tax Assessment NOC: MCGM (Assessment Department)
v Hydraulic Engineer No Objection Certificate: MCGM (Hydraulic Department)
v Storm Water Drainage No Objection Certificate: MCGM
v Sewerage No Objection Certificate: MCGM
v Traffic Dept. of Municipal Corporation of Greater Mumbai No Objection Certificate: MCGM
v Urban Land Ceiling NOC: Competent Authority in Collector's Office
v Tree No Objection Certificate: MCGM (Tree Authority)
v Non-Agricultural Permission: Collector's Office
v Civil Aviation No Objection Certificate: Airport Authority of India
v Pest Control No Objection Certificate: MCGM (PCO)
REDEVELOPMENTOF HOUSING SOCIETIES.....WHAT IS REDEVELOPMENT THAT EVERY SOCIETY WANTS TO KNOW? was created and written by DILIP SHAH This petition is hosted here at www.MyOnlinePetition.com as a public service. There is no endorsement of this petition, express or implied, by www.MyOnlinePetition.com or our sponsors.
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