DCPR 2034 OFFERING BONANZA TO ERRING BUILDERS

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AN OPEN LETTER TO HON’BLE PRIME MINISTER OF INDIA / HON’BLE CHIEF MINISTER OF MAHARASHTRA / HON’BLE CHIEF JUSTICE OF INDIA / CHIEF OF MAHARERA  & COMMISSIONER OF MUNICIPAL CORPORATION OF GREATER MUMBAI

 

This open letter is being sent on behalf of the harassed and frustrated flat buyers of under construction buildings whose possession of the dream flats, after payment of their hard earned savings, is inordinately delayed by builders. Such builders, inspite of severe default strictures, are being offered on platter by the government and BMC through the implementation of DCPR (Development Control Promotion and Regulation) 2034, a Diwali Gift, infact a Bonanza and largesse  in terms of crores of rupees of additional construction value as per present market rates. The objective of this letter therefore is that the respective authorities whom this letter is addressed and also the public at large who read the letter, mull over the issues mentioned and have their own conclusion whether such largesse to builders are justified when the builders have delayed the possession of the flats to the flat buyers. It is obvious that had the possessions of flats been provided as per agreement terms, and due process of law followed in respect of the formation of society and conveyancing, such largesse in many cases could not have been claimed by such defaulting builders. In other words, well before such notifications are made public, the builders are well aware of the proposals being deliberated and are confident of such largesse in the offing. Therefore they are never in hurry to fulfil obligations under agreement with flat buyers in order to claim the bounty in the offing.

Since last month there has been news in media about DCPR (Development Control & Promotion Regulation) Rules 2034 being implemented in Mumbai Region (both city & suburb).

It has been widely publicized that the DCPR 2034 will boost the construction activity in Mumbai by allowing builders to go for vertical growth of construction. This is because under the new rules, although physically such areas as stated has to be maintained, but for the calculation of the Built up area, the stated areas are hence forth not required to be deducted for calculating the total build up area. In other words the Build up area under the new rules has increased as compared to previous DCPR, and further enhanced because FSI factor is now applicable on the gross plot area instead of hitherto net plot area (after deductions for plot area earmarked for different purposes like recreation area, public garden, setback area etc). Such additional build up area accrues under the new rules on the plot of land.

The benefit of such additional build up area will obviously be claimed by Builders for under construction buildings as they own the plot of the land. However there are innumerable under construction buildings where the due date of possession to the flat buyers are long over. In most cases due to defaults on the part of the builders.

The flat buyers are the harassed lot as after putting in their hard earned life savings, their dream flats remain a distant dream. It is these people, most of whom silently suffer the pain and agony of the uncertain period when they will be handed over the possession of their flats. Many of these buyers have double dose of the consequent financial burden where they stay in rental accommodation and have also availed home loan as they have to shoulder burden of rent payment and also the home loan EMIs

The pain and suffering of the harassed flat buyers especially in case of under construction buildings, where the possession is inordinately delayed, is well known in the society. Therefore it can be surmised that, right from Hon’ble Prime Minister of India, Hon’ble Chief Minister of Maharashtra, Hon’ble Chief Justice of India, MahaRera Authories and Commissioner of  Municipal Corporation of Greater Mumbai – all are aware of the harassment and plight of the flat buyers. In fact this is one of the reason for promulgating the RERA in all states of India, so that harassed buyers get some relief and justice.

In the light of the above facts, when the benefits of the additional build up area on the plot is seen, it is very clear that in case of under construction buildings, even in case of inordinate delays in offering possession of flats to buyers, the builder will enjoy the benefit of the additional build up area as per the new DCPR.

An illustrative example is given below.

For example in  cases of buildings being constructed on Gross plot area of say 1,00,000 sq mtr area, earlier under DCPR 1991 15% area was supposed to be reserved for Recreation Garden (RG) (for simplicity in working only one element of RG is taken) and supposed to be deducted to arrieve at the build up area. Under DCPR 2034 SUCH AREA IS TO BE RETAINED PHYCICALLY BUT NOT TO BE DEDUCTED . The differences in the build up area under DCPR 1991 AND 2034 is as explained below

Description
DCPR 1991
DCPR 2034
Increase/Benefit
Gross plot Area – Sq Mtr
100000
100000
0
Less RG area -15% - sq Mtr
15000
0
15000
Net Area – SQ mTR
85000
100000
15000
FSI say
2
2.5
 
Build up Area – Sq Mtr
170000
250000
80000
Build up Area – Sq Ft @10.76 sq ft for 1 mtr
1829200
2690000
860800

 
Booking Rate for flat  approx.  per sq ft
 
 
18500
Maket Value of Additional Construction area – Rs. Crores
 
 
1592.48
 

Thus the above illustration gives an approximate idea of the gross benefit of additional construction to the builders – Rs. 1592.48 crores construction value for plot area of 1,00,000 sq mtr area. This  is not a small amount by any means which can be ignored. It may not be out of place to mention that many of the builders were already aware of the potential benefit they will be entitled to if they can hold on to plot as owner till the proposal is given nod by Government. Hence they have held on to ownership of the plots, albeit by delaying possession of flats and by other dubious means for last so many years – may be five /six years. To avail of such huge benefits, many builders have suspended construction, slowed down construction, held up forming society of flat buyers/ held p conveyancing the title to the plot to society, All these means followed to usurp the additional FSI/build up area which they knew was to be implemented some day in future. Thus longer it took for authorities to implement, longer was the harassment meted to flat buyers by the builders by delaying the possession of flats.

Therefore when lay men can understand the game plan played through the DCPR 2034 whose benefits in respect on under construction building is in most cases being enjoyed by defaulting builders, it is very surprising how this game plan of offering bonanza of the additional build up area to builders many of whom are defaulters in handing over possessions of flats to the flat buyers even after long delays, have not drawn the attention of  the respective respectable persons mentioned above holding position of authorities.

MCGM is fully aware about such defauting builders because the CCs and OCs are issued by them, judiciary is aware because there are innumerable cases between harassed flat buyers and builders are lying with various courts, government is aware as they have brought in RERA to regulate the real estate sector which is known for following unscrupulous practices.

Even now it is not too late for the eminent and the respectable persons and authorities mentioned above who may wield their authority individually or collectively to ensure that the erring and defaulting builders are denied use / transfer / sale of the additional build up area, atleast in relation to the plot on which under construction building is standing, till such builds are completed and peaceful possession handed over to flat buyers. Further where due to default on the part of the builder the society could not be formed, conveyance of the plot area could not be done, occupancy certificate is delayed - in such cases the builder should be debarred from enjoying the additional build up area/FSI on the said plot on which  under construction building is situate.

This will certainly bring some cheers on the face of harassed flat buyers when they will see the builders in pain if they are not able to enjoy the fruits of DCPR 2034 due to their own defaults.

I request all such harassed flat buyers whose possession of flats are delayed to identify their plight with the facts mentioned in this letter and support the view that the Authorities mentioned take such appropriate steps at earliest to SUSPEND ALLL DEFAULTING BUILDERS FROM AVAILING BENEFITS ACCRUING TO THEM THROUGH IMPLEMENTATION OF DCPR 2034 BY WAY OF USER/TRANSFER AND SALE OF ADDITIONAL BUILD UP AREA TILLL ATLEAST THE UNDER CONSTRUCTION BUILDINGS, WHOSE DUE DATE OF POSSESSIONS ARE OVER, ARE COMPLETED AND PEACEFUL POSSESSIONS ARE GIVEN. FURTHER WHERE THE SOCIETY FORMATION AND CONVEYENCING OF PLOTS TO SOCIETY ARE DELAYED, IN SUCH CASES THE BUILDER SHOULD BE DENIED THE BENEFIT OF SUCH BENEFIT OF ADDITIONAL BUILD UP AREA.

WITH THE FACTS STATED ABOOVE I HUMBLY REQUEST THE AUTHORITIES CONCERNED AND MENTIONED ABOVE IN THE LETTER TO USE THEIR AUTHORITIES AS SUGGESTED SO THAT NO FLAT BUYER IS REQUIRED TO UNDERGO HARASSMENT, PAIN, PLIGHT AND SUFFERINGS CAUSED TO THEM ON ACCOUNT OF DELAYS IN THE HANDING OVER OF THE DREAM FLATS, PURCHASED WITH THEIR BLOOD AND SWEAT, IN THE FUTURE. AND THAT THE UNDESERVING DEFAULTING BUILDERS ARE NOT OFFERED SUCH BOUNTIES ARISING OUT OF PROMULGATION OF ACTS LIKE DCPR 2034 ON A PLATTTER – LET THE BUILDERS ARE MADE TO EARN SUCH LARGESSE BY FULFILLING THEIR OBLIGATIONS UNDER THE AGREEMENT TERMS WITH THE FLAT BUYERS.

WE WISH THAT THIS LETTER WILL NOT GO UNNOTICED BY THE AUTHORITIES STATED THEREIN AND OUR HUMBLE REQUEST WILLL BE ACTED UPON BY THE CONCERNED AUTHORITIES WITHOUT ANY LOSS OF TIME.

 

 



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