MHADA to reclaim land worth Rs 280 cr from builders

Published: 21 October, 2011 09:25 IST | Varun Singh |

After reporting on builders selling off MHADA's land in SoBo, MiD DAY accesses their names and the size and location of the properties in question

After reporting on builders selling off MHADA's land in SoBo, MiD DAY accesses their names and the size and location of the properties in question

A day after this paper reported on how some builders cheated MHADA of its property in SoBo, running roughshod over the dreams of thousands of Mumbaikars of owning a house in city limits, we have accessed the names of the builders, the properties in question, their location, and details on how much land space the authority was supposed to get.

Murky territory: As per DCR rules, MHADA was supposed to get
14,480.88 sq m from 33 redevelopment projects in the city, but it only
got 366.94 sq m. File pic

According to the documents, MHADA is expected to get 14,480.88 sq m from 33 projects of 12 builders. But it received a mere 366.94 sq m. The remainder, 14,113.94 sq m, is still with the builders. The real estate rates in the localities of the buildings -- Kalbadevi, Nana chowk and Mahajanwadi, and others -- vary between
Rs 1.7-2.5 lakh per sq m.

So taking an average of Rs 2 lakh per sq m, back-of-the-envelope calculation says over Rs 282 crore is what MHADA would lose if the properties stay with the builders. For this amount, MHADA can accommodate nearly 1,405 families, if the rate of a one- BHK is calculated at Rs 20 lakh.

But the authority plans to regain them from the builder with legal aid, as many builders have sold them off. Once it gets the land back, it will auction it and construct affordable houses within Mumbai, which would be brought in the market via lottery.

The 33 projects in various parts of the island city came up where the builders redeveloped cessed buildings, managed and repaired by MHADA.

As per Development Control Regulations, the builder gets an FSI of 3, under which he has to first accommodate the tenants. After keeping 50 per cent of that for himself as incentive, the rest has to be divided in the ratio of 2:1 between MHADA and the builder. But in this cases, the rule was breached and the builders sold off the surplus area MHADA was entitled to.

Builders speak 
Top builders feature in the list, including DB group's Neelkamal Realtors and Sumer group.
A spokesperson from Neelkamal Realtors said, "The issue of handover of the surplus area to MHADA is sub judice in a writ petition (bearing number 1407 of 2011) against MCGM and MHADA, filed by Neelkamal Realtors & Builders. The High Court has passed various orders, protecting the project from any action. The matter is still pending."

He added, "We are pleased to clarify that MHADA in their own affidavit have admitted to a letter dated May 19, 2005 issued by them, approving the surplus area to be constructed in a separate building. However, they have not approved the plans. We were and are ready and willing to comply with the obligation of handing over the surplus area to them. Once the plans are approved, we shall construct such a building and hand over the surplus area to MHADA."

Rahul Shah of Sumer group said, "I know about it, but I am not the person who looks after the building concerned."

He added that he would get the person concerned to revert, but no one got in touch with us after that.

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