RERA to oversee redevelopment of Mumbai’s old buildings
The government is also expected to appoint the Maharashtra Housing and Area Development Authority (MHADA) as the nodal agency in this redevelopment.Updated: Mar 06, 2018 01:29 IST
In a move that will facilitate the redevelopment of more than 25,000 old dilapidated structures across Mumbai, the state government is likely to bring the revamp of old buildings under the purview of the Real Estate Regulatory Authority (RERA).
The government is also expected to appoint the Maharashtra Housing and Area Development Authority (MHADA) as the nodal agency in this redevelopment. An eight-member committee of legislators set up to suggest measures to speed up redevelopment of old buildings, on Monday made these twin recommendations in its last meeting with the state housing department. The committee which includes members of both the Houses of the state legislature was set up during the monsoon session in 2016.
“We have accepted these suggestions. There will be a tripartite agreement between tenants, builders and MHADA for any such redevelopment. This will ensure that MHADA can take over the project in case of a default by existing developers,” said state housing minister Ravindra Waikar. The state will have to modify the MHADA Act and amend the existing RERA rules to make these changes.
“RERA will usher in the much needed accountability to these projects. Residents will know when they can get possession of their new houses and this will boost their confidence in the redevelopment process,” added Waikar. Until now, rehabilitation component of redeveloped buildings did not come under the purview of RERA.
By getting these tenements within the ambit of real estate regulator, existing residents will be assured of getting their homes redeveloped in a fixed time frame. Delays by a developer can lead to compensation for the tenants.
“If MHADA is a part of the agreement, it will become inevitable for it to step in if the builder backs out,” said Congress legislator Amin Patel, a member of this legislators’ committee. The rules would state that in case of the builder not executing the project, he can be removed by MHADA. MHADA will give the landlord three months to bring in a new builder. In case the landlord fails, the tenants will be given three months. If both fail, MHADA will step in and appoint a contractor. There are currently 14,375 dilapidated structures in the island city and the 10,500 in the suburbs.