• Eligibility as per new DCR

Respected Sir

Myself Neha Gandhi, am a tenant of Building in Mumbai , Ghatkopar West. ( Pagadi System Landlordship). BMC has issued notice for demolishing our cessed building earlier under influence of a builder. Now the Builder wanted us to vacate the premises on basis of only MoU.

Presently we use 368 Sq. feet CA and the builder is poposing 20% additional FSI (inclusive fungible) along with 3% variation. Along with Rs. 15,000/- PM as accomadation expenses. Also, GST / Registration Charges / stamp duty / Municipal tax to be borne by tenants.

Most importantly, the builder is not giving any deadline for project and not submitting any proposed layout plans.

Query : As per new DCR, What are we eligible for in terms of :

1. Additional area. 
2. Monthly rent.
3. GST / Registration Charges / stamp duty / Municipal tax to be paid by whom.
4. Deadline to be mentioned in consent terms.

Thanks & Best Regards
Neha Gandhi
Asked 4 years ago in Property Law
Religion: Hindu

2 answers received in 1 hour.

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9 Answers

1) Redevelopment projects of cessed buildings are given permission under Development Control Rule (DCR) 33 (7) and 33 (9), which offer builders incentive floor space index (FSI) of over 50 per cent after rehabilitation of the existing tenants in such structures.

2) there is no time frame for the owner to redevelop an old and dilapidated cessed building.

3) stamp duty , registration charges to be paid by builder

4) tenants are entitled for copy of sanctioned plans

5) monthly rentals , additional area second upon your agreement with builder

Ajay Sethi
Advocate, Mumbai
87947 Answers
6207 Consultations

5.0 on 5.0

1) Additional area 20% carpet area is fine.

2) You have to take monthly of your residential area i.e. 368 sq ft.

3) GST / Registration Charges / stamp duty / Municipal tax to be paid by Builder.

4) Yes, Builder should provide deadline of project and make MOU with society and plus individual it should be registered.

Ganesh Kadam
Advocate, Pune
12338 Answers
191 Consultations

4.9 on 5.0

This is my response to you:

1. You are firstly bound by the law of Maharashtra Rent Control Act because you are in pagdi set-up;

2. You must know section 17(4), 20: Tenants. right to give notice to landlord of his intention to occupy tenement In new

building, 21: Landlord to Intimate to tenant date of completion and tenant's right to occupy Premises in new building;

3. Also you must enter into Re-development Agreement not just an MOU. And if the builder insists only on an MOU then notarize it;

4. The increased area, the rent, the GST and all should be mentioned and also the deadline date has to be mentioned, the possession date etc.;

5. Consult a local lawyer if you are being harassed by the builder.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

Yes you are eligible for Additional area alongwiht monthly rent as per the new DCR.

Also the GST is to be paid by you.

But the builder usually has to show you the development plan alongwith the deadline for completion of the same.

See as to what deadline has he provided with RERA for the project.


Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

1. additional carpet area depends on the specific regulation of DCR under which the builder proposed to redevelop the building. The tenants need to negotiate hard to obtain additional carpet area over and above to what is prescribed in the DCR. DCR only mentions the minimum carpet area which has to be provided. Tenants can obviously demand a bit more for giving their consent to builder to redevelop their building

2. as per contract. There is no specific amount mention in DCR

3. All need to be borne by builder

4. as per contract/mutual agreement. Generally it is 36 months plus grace period from the date of handover of vacant possession of building to builder

Yusuf Rampurawala
Advocate, Mumbai
6882 Answers
79 Consultations

5.0 on 5.0

Amended development control rules (DCR) approved by the state government last January grant 35% compensatory floor space index (FSI) free to the rehab component of the redevelopment project. But it is not known if the builder or flat owner will have to pay for the additional space.

Tenants are currently entitled to 300-700 square feet houses free when their buildings are redeveloped. But if the flat is larger than 700 sq ft, builders provide an equivalent area to the tenant in the re-developed property.

If the apartment is 1,000 sq ft, the compensatory FSI will be given on 910 sq ft (minus the 90 sq ft balcony area). Hence in the redeveloped property the occupant can receive a new house measuring about 1228 sq.ft ..

As per the terms of the agreement between the developer and the society in question, existing members of the society receive new flats in the reconstructed building of an area equal to or more than the area of their existing flats. But redevelopment can only take place if 75 percent of the members tender their consent.

"If the carpet area, as documented in the agreement, is not given by the builder, the owner can claim appropriate compensation through a consumer court by filing a complaint against the builder under the counts of Breach of Trust, Cheating, Unfair Trade Practice and Deficiency in Service,

The housing society should insist on a bank guarantee, which would take care of monetary compensation to ensure the project is not delayed or stopped midway. "The successful bidder has to give a bank guarantee equivalent to 20 percent of the total project cost,

The agreement should mention the time of completion of the project, the size of the new houses, the mode and nature of monetary compensation, if it's a one-time payment, reimbursement of rent, or a mix of both.The developer also has to offers a monthly compensation in advance along with the brokerage and transportation charge that the tenant has to incur while securing an alternate accommodation

T Kalaiselvan
Advocate, Vellore
78104 Answers
1543 Consultations

5.0 on 5.0

dont vacate the premises unless builder has got the plans sanctioned from municipal corporation

2)builder has to obtain IOD and commencement certificate

3)you can seek stay order against demolition if builder fails to obtain sanctioned plans from BMC

Ajay Sethi
Advocate, Mumbai
87947 Answers
6207 Consultations

5.0 on 5.0

1. pagadi building will be redeveloped under Regulation 33(7) of Development Control Rules

2. as per 33(7), each tenant has to be provided 300 sq.ft. carpet area in new flat

3. plus 105 sq.ft. carpet area on account of fungible FSI under Regulation 35 of DCR

4. So total carpet area which each tenant will be entitled to is 300 + 105 = 405 sq.ft.

5. the builder will need consent from 70% tenants to make an application to MHADA for approving the proposed redevelopment

6. you must give your consent only if the builder clearly agrees on the carpet area of new flat, rent for alternate premises, to and fro shifting charges, brokerage on leave and license, time within which new building will be completed, amenities in new flat and building - all these have to be agreed by entering into a permanent alternate accommodation agreement with builder. This agreement needs to be registered

7. the period for completing construction of new building commences from the date on which the builder is handed over full vacant possession of the old building

8. you must also ask the builder to prepare the building plans and have it approved by BMC and obtain IOD i.e. Intimation of Disapproval

9. from the building plans approved by BMC you will come to know where exactly on the plot the new building for rehab tenants will be constructed and where the new building for free sale buyers will be constructed OR whether there will be only 1 building to accommodate both the rehab tenants and free sale buyers

10. as MHADA is governing body, you must write to MHADA to seek all these information from the builder before possession is given to him

11. query no.3 - no you cannot do that. If the building is beyond repairs and likely to fall then it must be demolished. For a stay you need to obtain an alternate structural audit report which says that building can be repaired. The HC will then transfer matter to Technical Advisory Committee and this TAC will submit its report to the court whether building is repairable or not

Yusuf Rampurawala
Advocate, Mumbai
6882 Answers
79 Consultations

5.0 on 5.0

If the builder does not give us the development plan, deadline of project, etc, can we apply for stay order against Municipal Corporation for demolition of dilapated building (U/s 354) ?

Yes, you can proceed with an injunction suit against it, however the BMC may have to give its consent before the honorable court for this.

T Kalaiselvan
Advocate, Vellore
78104 Answers
1543 Consultations

5.0 on 5.0

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