Revamp projects stuck for two years in Mumbai get a push after SC order
This move is expected to give relief to approximately 700 projects, which have been stuck due to the Bombay high court order that had banned all construction activity in February 2016.mumbai Updated: Mar 18, 2018 00:44 IST
The Supreme Court’s order to lift the ban on new construction is expected to give a boost to the redevelopment activity in the suburbs, which had been paralysed since the last two years.
This move is expected to give relief to approximately 700 projects, which have been stuck due to the Bombay high court order that had banned all construction activity in February 2016.
According to Omkar Realtors, who are involved in some redevelopment projects, this move will kick-start the entire revamp process.
“This will bring back the momentum in the realty market. The ban had adversely impacted the entire sector as construction of sale component was disallowed,” said Babulal Verma, managing director, Omkar Realtors.
At a time, when builders are facing monetary crisis and diversion of funds from other projects are disallowed due to stringent clauses in the Real Estate Regulatory Authority (RERA) Act, builders were reluctant to take up projects citing monetary concerns.
This had left many housing projects in the lurch as approvals were stopped and residents continued to stay in their old premises not knowing when the revamp would start.
However, the SC order has now given them hope that work on the revamp front will begin soon.Though the SC has allowed them the green signal to proceed, builders have to take responsibility to dispose of the debris in the landfill.
Any violation will result in the revocation of the permission.
The high court, had in February 2016, banned all construction activity as more than half of the municipal solid waste generated in the city was being dumped, contrary to the Municipal Solid Waste (MSW) Management Rules, and was thus illegal.
However, this did not apply to the revamp of old, dilapidated and slum redevelopment projects.
However, the ban was in force in respect to the tenanted properties in the suburbs and also the sale component, which in turn impacted the whole viability of the project.
According to the Maharashtra Societies Welfare Association (MSWA), the order has come as a breather for the residents of the suburbs.
“Residents were waiting for some relief as there was hardly any activity due to the ban,” said Ramesh Prabhu, chairman, MSWA.
The Supreme Court on Thursday lifted a two-year-old moratorium on new construction in the city imposed by the Bombay high court.