Posts Tagged ‘Mumbai’

Plan to conduct Scientific Survey on all dilapidated buildings in Mumbai before Monsoon

Thursday, May 2nd, 2013

After the Mumbai incident, where a building collapsed, killing 74 people, and injuring several others, the state government had decided to conduct a scientific audit of all cessed and dilapidated buildings in the city and appoint consultants for technical study of the structures. According to Sachin Ahir, minister of State for housing, “The housing department plans to conduct a scientific survey of all dilapidated buildings, especially before the rains start”. As per department statistics, the city has over 13,000 cessed buildings, which were built before 1940-many of which need repair immediately. It is the Mumbai Buildings Repairs and Reconstruction Board (MBRRB) that checks, if the structure requires any repair or reconstruction. However, the board officials are doubtful about completing such a large-scale survey before the monsoon. According to an official of the housing department, “Scientific survey of all buildings is not possible in such a short span. The board can identify the buildings that need to undergo structural audit on priority. Structures in better condition can be surveyed later in the year”.

The housing department’s move assumes significance with the Comptroller and Auditor General of India (CAG) questioning the mechanism adopted by the MBRRB for identifying dilapidated cessed buildings in Mumbai. According to the CAG, in its recently tabled report in the state legislature, “It is difficult to visually ascertain the deterioration or distress of a building structure”. Taking cognizance of the CAG’s remark, Ahir said the board would soon appoint or hire experts from reputed institutions, like IIT-B, for conducting scientific tests of the old structures. He also added, “Experts will be roped in for completing the survey”.

The CAG, in its report, also stated that despite the board’s survey, seven cessed buildings collapsed between 2008 and 2011, which caused the death of 37 people. A total of 39 people were injured. The Maharashtra Housing and Area Development Authority (Mhada) has also begun the process of appointing a consultant for carrying out structural audit of its structures.

Real estate prices in Mumbai may undergo a correction

Tuesday, April 9th, 2013

The real estate prices in Mumbai may undergo a correction as several new launches are being done at a discount to average market prices. According to a recent report on real estate by Bank of America Merrill Lynch, the property prices in Mumbai have increased to almost 14 per cent (CAGR) in the last decade and the most affordable project within Mumbai is upwards of Rs 10,000 per sq ft. This means that for a 2BHK apartment, the price will be at least Rs 1.5 crore. Only households with an annual income greater than Rs 35 lakh would be able to afford it. According to Abhishek Kiran Gupta, Real Estate Analyst at Bank of America Merrill Lynch, “This trend is unsustainable and prices in Mumbai will have to correct and remain subdued over the next 2-3 years. This will allow improvement in affordability as income levels catch up with residential prices. Most of the new launches during Jan-Mar 2013 have been at a discount to average market prices”. According to the report, new project launches at attractive prices, discounts, schemes attract buyers, and launches by renowned developer brands resulted in pick-up in sales during the period. Discounts have helped sales in the quarter ended March 31, 2013.
Struggling to step up sales at current market prices, builders are now offering schemes to lure buyers. While builders have not officially cut base prices they are resorting to several discount schemes and freebies to push sales. Several Mumbai-based builders are offering discounts through 20:80 schemes, stamp duty waivers, floor rise waivers and other freebies. The 20:80 models are where the buyer pays up to 20 percent of the entire amount as advance, while the rest is paid only when the flat is ready. According to Pankaj Kapoor, MD at real estate firm Liases Foras, “Prices and land values have to go through a correction in Mumbai. Ready-to-move-in property is cheaper than those under construction. If you look at the secondary market, price correction has already taken place as resale apartments are being offered at least 15-20 per cent below the market price”.

Real estate prices in Mumbai may undergo a correction

Tuesday, April 9th, 2013

The real estate prices in Mumbai may undergo a correction as several new launches are being done at a discount to average market prices. According to a recent report on real estate by Bank of America Merrill Lynch, the property prices in Mumbai have increased to almost 14 per cent (CAGR) in the last decade and the most affordable project within Mumbai is upwards of Rs 10,000 per sq ft. This means that for a 2BHK apartment, the price will be at least Rs 1.5 crore. Only households with an annual income greater than Rs 35 lakh would be able to afford it. According to Abhishek Kiran Gupta, Real Estate Analyst at Bank of America Merrill Lynch, “This trend is unsustainable and prices in Mumbai will have to correct and remain subdued over the next 2-3 years. This will allow improvement in affordability as income levels catch up with residential prices. Most of the new launches during Jan-Mar 2013 have been at a discount to average market prices”. According to the report, new project launches at attractive prices, discounts, schemes attract buyers, and launches by renowned developer brands resulted in pick-up in sales during the period. Discounts have helped sales in the quarter ended March 31, 2013.

Struggling to step up sales at current market prices, builders are now offering schemes to lure buyers. While builders have not officially cut base prices they are resorting to several discount schemes and freebies to push sales. Several Mumbai-based builders are offering discounts through 20:80 schemes, stamp duty waivers, floor rise waivers and other freebies. The 20:80 models are where the buyer pays up to 20 percent of the entire amount as advance, while the rest is paid only when the flat is ready. According to Pankaj Kapoor, MD at real estate firm Liases Foras, “Prices and land values have to go through a correction in Mumbai. Ready-to-move-in property is cheaper than those under construction. If you look at the secondary market, price correction has already taken place as resale apartments are being offered at least 15-20 per cent below the market price”.

Brihanmumbai Municipal Corporation received 3,000 response to ELU Maps Change – Mumbai

Monday, March 4th, 2013

The civic body has received around 3,000 responses to the ELU maps change. The BMC has given at least two months to the citizens to response and February 28 was the last date for sending suggestions. According to the sources the deadline could be extended further by another month. NGOs and citizens’ groups, scrutinizing the ELU maps at ward levels, have found several errors in these maps and want the BMC to rectify them before going ahead with drafting the new development plan for the next 20 years from 2014. The ELU maps form the basis of the development plan. The DP is the land use map of the city.  The official said that the BMC will send its officers for site visits to address the objections. If needed, the changes will be made in the maps and then work will start to prepare the draft of the development plan.

Some of the errors pointed out by citizens are that the some educational institutes have been marked as commercial land; slums have either not been mapped or mapped as green spaces. Open spaces, heritage structures have been mapped as something else or not mapped at all. Mangroves have been marked as open land. Citizens groups have found over 200 errors in the ELU maps from wards like M-east (Chembur, Trombay), H-west (Bandra, Santa Cruz) and K-west (Juhu).

BMC gets 178 Responses over illegal Religious Structures on Public Properties – Mumbai.

Thursday, February 14th, 2013

The BMC till now have received 178 responses from the citizens over illegal religious structures on public properties. The civic body had published a list of 742 illegal religious structures on December 28 and listed 534 structures for demolition and 208 for regularization. The BMC had asked citizens objecting to the illegal status given to a particular shrine to submit documents to prove that the structure existed before 1964—the cut-off datum for legal shrines. The BMC will also conduct a hearing in some cases before deciding on the issue. Tuesday was the last day for submission of feedback following which the BMC will compile a report on the religious structures to be regularized or razed.

 

 

 

Recommendation from SFIO to prosecute Asaram Bapu in Land Grab case – Mumbai

Wednesday, January 23rd, 2013

 

The Serious Fraud Investigating Office (SFIO) is seeking Asaram Bapu’s prosecution in an Rs 700 crore land grab case in Madhya Pradesh. According to sources, the land, located on the Delhi-Pune freight corridor in MP belongs to Jayant Vitamins Limited (JVL), a major player in glucose and vitamin supply to other pharma companies, was allegedly grabbed and being used by the Self-styled godman, Asaram Bapu in 2000. JVL is a public limited company which was delisted from the Bombay Stock Exchange in 2004 for defaulting on the mandatory listing fees which companies pay to the stock exchanges to list themselves. Though JVL did not complain about the matter, a shareholder of the company approached the Ministry with the complaint of mismanagement of company’s properties following which ministry transferred the complaint to SFIO in 2010 for investigation. The SFIO after investigating the case over two years now, sent its recommendation to the ministry. According to a senior official from ministry of corporate affairs, “We have received the recommendation from SFIO to prosecute Asaram Bapu, his son Narayan Sai and some others in the case and it is under consideration”.

 

 

 

Bhendi Bazaar Reconfiguration Plan is Ready to Take off – Mumbai

Wednesday, January 23rd, 2013

One of the Mumbai’s most ambitious attempts to reconfigure Bhendi Bazar – a crowded residential-commercial area -is at final approval stage.  The construction will start in April after receiving the final environmental clearance. Saifee Burhani Upliftment Trust (SBUT) who is carrying out the project will approach the State Environment Impact Assessment Authority for its final approval. This project in Bhendi Bazar stretches from the JJ flyover junction at Byculla to Minara Masjid on the south. The State Environment Appraisal Committee-2 (SEAC-2) requested the SBUT to draw up a traffic management plan and to set up foot overbridges at important junctions and to use only treated waste water for the work while getting the final approval.

Bhendi Bazaar is just a maze of concrete today; but once the project is completed it will have over 700-odd trees, congestion-free roads and the city’s longest shopping corridor.

Approvals for the use of No Development Zones (NDZs) –Mumbai

Wednesday, January 23rd, 2013

The Maharashtra government had decided to use NDZs for industrial, commercial and residential activates. As per the government decision, a developer can utilize 60% of land for industrial activity, while about 10% for commercial development and 30% for apartments and facilities like schools, colleges, recreation grounds. The government has also decided to permit a maximum floor space index (FSI) of 0.5 for integrated industrial areas (IIA) situated in green zones (GZ) i.e. agriculture zone and urbanizable zones. A FSI of 1 will be permitted in residential or industrial areas. According to chief minister Prithviraj Chavan, the development permission for commercial and residential activities will be granted only after development of infrastructure for the portion earmarked for industrial development and disposal of one-third of the industrial area. The developer will have to set up 75% ‘onsite infrastructure’ within three years. The town planning department will approve the integrated industrial areas (IIA) layout, whereas building plans will be cleared by MIDC or CIDCO.”

Compulsory Registration of Construction Workers – Mumbai

Wednesday, January 23rd, 2013

The Construction Workers Welfare Board has insufficient information about the workers hired by the contractors who are involved in Maharashtra Government projects. As a result, Rs 1000 Crore are lying unutilized with them. In such a situation, the Maharashtra Government has decided to make it compulsory the registration of construction workers so that these workers will be able to get the benefits which are under the Construction Workers Welfare Board. According to the Labour Minister Hassan Mushriff, an Aam Aadmi Bima Yojana (AABY) will be initiated to undertake the covers death and disability insurance for the benefit of rural landless farmers. This drive to register the workers will be taken up from January 26 to February 10.  It was also decided to make compulsory registration of the workers in projects which are under the government agencies like MMRDA, BMC.

This registration will help the construction workers to claim the death and disability insurance under the Construction Workers Welfare Board.

Impact of Increase in Ready Reckoner Rate in Mumbai Real Estate – Mumbai

Thursday, January 17th, 2013

fall in the housing sales  due to increase in RR rateWith effect from January 1, the state government has decided to increase the Ready Reckoner (RR) rates in Mumbai. They have decided to increase the RR rate for both residential and commercial properties in the city, ranging from 5-30 per cent. This will lead to a massive fall in the housing sales as this will result in increase in Stamp duties. This is because the market value of a property for stamp duty and registration charges is calculated on the basis of this RR rate. According to Ramesh Nair, the Managing Director of a real estate consultancy firm Jone Lang LaSalle (JLL), the buyers are already burdened with 25 per cent of the real estate cost which consist of Service tax, Sales tax, VAT, Taxes and duties on construction materials. The increase in RR rate will only increase their burden which will lead to a fall in housing demand. On the other hand, if this stamp duty and taxes comes down, the buyers can afford a home which will ultimately lead to increase in housing sales.