a study on how existing tenants living in old and dilapidated buildings can be accommodated in newer Buildings without any financial burden on them, and in a manner which is viable and profitable to the developer as well.
Research on Redevelopment
Project in Mumbai
The purpose of this study is to understand how existing tenants living
in old and dilapidated buildings can be accommodated in newer
Buildings without any financial burden on them, and in a manner
which is viable and profitable to the developer as well.
I come from a family of real estate developers. Known as the Kothari
The Kothari Group, founded in 1940 by Mr. Champalal Kothari who
was a great visionary of his time and a pioneer of the Real Estate
The Kothari Group has diverse business interests ranging from
Construction, Hospitality and Entertainment with a number of projects
in Mumbai, Thane & Pune.
For over 40 years the Kothari Group has been a name renowned for
quality and reliability in the construction industry. The group has
completed numerous residential and commercial projects in its long
history which are noted for their quality of construction and command
a premium amongst others. The group has earned a reputation for well
planned and aesthetically pleasing projects.
My Father Mr. Amit Kothari grandson of Mr. Champalal Kothari is the
third Generation in this family Business of Real Estate Developers and I
Aman Kothari am the fourth Generation.
There are over 16000 cessed buildings ( extremely old buildings on
which the state government levies a charge called the “Repair Cess” for
their maintenance and repair) in the city of Mumbai. These buildings
require reconstruction / redevelopment due to their poor condition.
Majority of the occupiers of these buildings are tenants who pay
miniscule rents to their landlords, and as a result the landlords are not
able to maintain these buildings.
The tenants cannot be evicted due to the old tenancy laws which
prevent their eviction without rehabilitation in newer building. Most of
these buildings are in a pathetic condition and the living conditions of
these tenants is extremely poor. These unsafe buildings not only pose a
threat to the lives of the tenants but also to their surrounding and the
community at large.
State Government Policy
With a view to encourage private developers to come forward to
undertake the redevelopment / reconstruction of these buildings the
state government framed a policy providing incentives to such
These incentives form part of the Development Control Regulations
(DCR) for Greater Mumbai (being DCR no 33/7) which apply to the
building activity and construction/ development work in the areas
under the jurisdiction of the Municipal Corporation Of Greater
These rules apply to the development, redevelopment, demolition,
erection, design, construction, addition, alterations to all buildings in
MCGM by various amendments has allotted extra FSI (Floor Space
Index or Floor Area Ratio) to incentivize the developer. The developer
of such dilapidated buildings get extra FSI and the tenants of such
buildings get newer homes resulting in a win-win for both.
The developer is allowed to reconstruct the area occupied by the tenant
subject to a minimum of 300 sft(square feet) up to a maximum of 750
sft when such buildings are redeveloped and he is also given an
incentive FSI upto 50% of the area required to re-house the tenants(
also called rehab area). In case of redevelopment of A category cessed
buildings (constructed before 1940) the total FSI is 2.5 the gross plot
area. Under the policy the developer is assured of approximately 50%
FSI for free sale to enable him to cover his cost and Profit.
Reconstruction or redevelopment of cessed buildings in the Island City
by Co-operative Housing Societies or old buildings belonging to the
corporation or of old Buildings belonging to the Police Department. –
For reconstruction / redevelopment to be undertaken by Co-operative
Housing Societies of existing tenants or by Co-operative Housing
Societies of Landlords and / or Occupiers of a cessed building of ‘A’
category in Island City, which attracts the provisions of MHADA Act,
1976 and for reconstruction / redevelopment of the buildings of
corporation and department of Police, Police Housing Corporation, Jail
and Home Guard of Government of Maharashtra, constructed prior to
1940, the floor space index shall be 2.5 on the gross plot area or the FSI
required for Rehabilitation of existing tenants plus incentive FSI as
specified in Appendix III whichever is more.
The state government has also set up a separate regulatory body called
the Maharashtra Housing and Area Development Authority (MHADA)
to monitor and regulate the construction of such redevelopment
projects. MHADA has to certify the property, the list of tenants etc and
there after the MCGM approves the redevelopment plans.
Sr.No. Description Area in Sqm.
1 Area of Plot 1460.72
2 Area of Plot Adopted 1460.72
3 Deductions For
a) Road Setback 213.20
b) Proposed Development Plan (D.P.) Road Nil
c) Any Reservation Nil
Total (a+b+c) 213.20
4 Balance Area of Plot 1247.52
5 Deductions for Recreation Garden (R.G.) (15%) Nil
6 Net Area Plot 1247.52
7 Additions for F.S.I. Purpose
3a. 100% 213.20
3b. 100% Nil
8 Total Area ( 6+7 above) 1469.72
Area Statement Contd..
Sr.No. Description Area in Sqm.
9 F.S.I. Permissible 2.50
10 a. F.S.I Claimed lieu of Reservation T.D.R. Restricting to 40% of net Area
b. F.S.I. Claimed in lieu of D.P.Road T.D.R. Restricting to 40% of Net Area
c. F.S.I Claimed in lieu of Slum T.D.R. Restricting to 20% of net area
10A Total T.D.R. Claimed (a+b+c)
11 Permissible floor Area 3651.80
12 Existing Floor Area Nil
13A Proposed Floor Area (wing-B for re-housing the tenants ) 1380.80
13B Proposed Floor Area (Wing-A : Developers Free Sale Area) 2271.00
14 Excess Balcony Area Taken F.S.I. (as per B(c ) below) Nil
15 Total Built-up Area proposed (12+13+14 above) 3651.80
16 F.S.I. consumed (15/4 above ) 2.50
As seen from the above plan four structures exist on the plot of land namely
1. Ramtirth Kutir
2. Ashok Kutir
3. Gautam Kutir
4. School Building
The School Building is in a Dilapidated State. The total area occupied by
the Tenants staying in the 3 Buildings i.e. Ramtirth Kutir, Ashok Kutir &
Gautam Kutir 1380.80 Sq. meter.
The free sale area available to the developer is 2271.00 sq. meter.
Thus as seen from the above Area Statement, the Tenants are re-housed in
new building free of cost and the Developers get an area of 2271.00 sq.
meters to be sold at market rates.
This results in WIN-WIN situation for the Developers as well as the