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Mumbai developers now obligated to allocate extra space for rehabilitating tenants

In a significant development for Mumbai's urban landscape, the state's urban development department has put forth a proposal calling for all BMC (Brihanmumbai Municipal Corporation) and MHADA (Maharashtra Housing and Area Development Authority) rehabilitation homes to have a minimum area of 405 square feet. This initiative aims to improve living conditions for residents in these housing complexes.
Clause 15 of the notification accompanying the proposal highlights a critical provision stating that the fungible compensatory area admissible on the rehab component shall be granted without charging a premium and such fungible compensatory area for the rehabilitation component shall not be used for the free sale component. Instead, it shall be utilized to provide additional living space beyond the eligible area to the existing tenants.
The fungible compensatory area, constituting 35% of the total built-up area, was introduced in 2012 with the intention of facilitating the creation of larger homes. These larger homes would have a carpet area of 105 square feet in addition to the minimum 300 square feet required for a rehab flat. However, developers have contended that this additional area is optional and not feasible within their projects.
With the government's latest notification explicitly specifying that this additional space must be allocated to tenants, builders will no longer be able to bypass this requirement. This marks a substantial change in the approach to urban development and housing in the city.
The notification also paves the way for the demolition of 19 BMC-owned buildings in central Mumbai. These demolitions are necessary to make room for the construction of the Bandra-Sewri connector, a vital link connecting the Bandra-Worli Sea Link and the Mumbai Trans-Harbour Link. This infrastructure project is set to enhance connectivity and transportation in the city.
The notification outlines the allocation of living spaces for the occupants to be rehabilitated, guaranteeing a minimum fixed carpet area of 27.88 square meters (300 square feet) and a maximum carpet area of up to 120 square meters (1,292 square feet). Additionally, in cases where a building is declared dangerous, 75% of the tenants must consent to the redevelopment by BMC/MHADA. Occupants will be required to pay the necessary premium, and a tripartite agreement will be signed involving occupants, developers, and BMC/MHADA. This development is expected to have a significant impact on Mumbai's urban housing landscape and infrastructure.

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