Within our right to auction CRZ plots: CIDCO

The plot, located in adjoining sectors 54, 56 and 58 in Nerul, is one of 16 plots that will be auctioned in the satellite city.

Mumbai: City and Industrial Development Corporation of Maharashtra Limited (CIDCO) on Monday said that they are well within their rights to auction the 25,138.86 square metres (sq m) plot in Navi Mumbai, even though it falls within the coastal regulation zone (CRZ).

The plot measuring 25,138.86 sqm overlooks the Arabian Sea and around 30% of its plot falls under CRZ-I (Bachchan Kumar/HT PHOTO)

The plot, located in adjoining sectors 54, 56 and 58 in Nerul, is one of 16 plots that will be auctioned in the satellite city. It is the largest of these lots, with a base rate of ₹1.36 lakh per sqm and a reserve price of ₹343.46 crore. The plot has a base floor space index of 1.5.

Speaking to HT, Priya Ratambe, spokesperson, CIDCO, said, “There is no provision in any iteration of the CRZ law which prevents us from auctioning plots where CRZ rules are applicable. When we raise tenders for the auction, the document specifies very clearly that the builder will have to seek the Maharashtra Coastal Zone Management Authority’s permission before they can proceed with construction. We are a planning body responsible for the development, not a regulatory authority.”

The plot measuring 25,138.86 sqm overlooks the Arabian Sea and around 30% of its plot falls under CRZ-I classification, which refers to ecologically sensitive areas in the intertidal region. On paper, this includes national parks/marine parks, sanctuaries, reserve forests, wildlife habitats, mangroves, and coral reefs.

The remaining plot falls under CRZ-II, referring to areas that have already been developed up to the shoreline of the coast, and where building restrictions have recently been lifted under the provisions of CRZ Notification, 2019.

Rajesh Prajapati, a real estate developer and spokesperson for the Maharashtra Chamber of Housing Industry (MCHI) (which is a member of India’s apex realtor body, the Confederation of Real Estate Developers’ Associations of India, or CREDAI) said that this stance of CIDCO’s will jeopardise not only developers but also property buyers, as evidenced by the dozens of real estate projects in and around Navi Mumbai which still does not have occupation certificates (OC) from their respective local authorities, i.e. NMMC or CIDCO.

“Based on our assessment, there are 94 real estate projects in Navi Mumbai’s Dronagiri node alone which have not received occupation certificates from CIDCO because they do not comply with CRZ rules, due to which the MCZMA has not cleared the project. They were sanctioned and given commencement certificates by CIDCO, so they are legitimate developments, but they have been unable to obtain the MCZMA’s nod because they are in CRZ areas which were non-developable at the time that construction started. This leaves the builders and the buyers high and dry,” Prajapati said.

Recently, the MCZMA rejected CRZ permission for a plot located at Sector 53 in Dronagiri during a meeting held on June 15. As per the minutes of the meeting, about 90% of the plot and the proposed building fall under CRZ-1A, indicating that it is within 50 metres of a mangrove area. Hence the proposal was rejected as per the Bombay High Court judgment of September 18, 2018, which calls for the protection of mangroves in the state.

“Common sense dictates that these plots are ecologically sensitive and should not be floated for auctions,” said Navi Mumbai-based environmentalist BN Kumar.

An official with the Navi Mumbai Municipal Corporation (NMMC), seeking anonymity, said this issue is not a new one. “Starting from 2016, the NMMC has several times officially sought post-facto clearance for many such buildings from the MCZMA and has also requested CIDCO to comply with CRZ rules when allotting plots to developers. These plots should not be floated,” the official said.

Narendra Toke, chairperson, MCZMA, did not respond to requests for comment. A member of the Authority, seeking anonymity, said, “We will consider the proposals when they are submitted to us for clearances. We will uphold all the applicable CRZ rules.”