Date:02/06/2005 URL: http://www.thehindubusinessline.com/2005/06/02/stories/2005060201441700.htm

Back Maharashtra Cabinet accepts panel report on old buildings

Our Bureau

Mumbai , June 1

MORE than 10,000 old and dilapidated buildings predominately located in the posh South Mumbai area would have to be insured by resident associations, the Chief Minster, Mr Vilasrao Deshmukh, said while speaking to the mediapersons on Wednesday after the weekly Cabinet meeting.

The insurance proposal is a part of the recommendations of the Afzalpurkar Committee report on old buildings that was accepted by the Cabinet.

In order to implement the recommendations, a working group headed by the Vice-President of Maharashtra Housing and Area Development Authority will be formed, Mr Deshmukh said.

Some buildings are over 70 years old and in very unstable condition due to lack of proper maintenance. Taking into account these conditions, the report has made it mandatory for redeveloper of these buildings to appoint certified and competent structural engineers and architects to carry out the repairs. The redeveloper would be held responsible for all the repair work.

Builders wanting to reconstruct such buildings will have to bear the complete expense. Apartments in these newly constructed buildings would be given free of cost to the original tenants of the buildings. The redeveloper would benefit from additional floor space index (FSI). This FSI for such projects will not exceed two, Mr Deshmukh said.

The Maharashtra Ownership Flats Act, 1963 would be suitably amended so as to bring more accountability and transparency in the real estate sector, the Chief Minister said. Builders indulging in fraudulent and illegal practices could face up to five years of jail and disqualification from the trade for five years, he said.

`Conveyance deed' - usually left unfulfilled for monetary gains by the builder - has to be fulfilled by the builder for smooth handover of the building to the tenants. In the amended Act, the conveyance deed would be assumed as completed if the builder fails to fulfil the deed within four months of acquiring the `occupancy certificate'.