This document discusses the impact of easing business regulations on building permissions in Mumbai. It outlines the obstacles in the previous lengthy approval process, including extensive paperwork, long report writing, file journeys between departments, compliance requirements, and delays in obtaining occupancy certificates. The document then details the state government's efforts to improve the process by making all permissions online. It outlines the staged approval process and highlights of the new procedure, including timelines for concurrent approvals. Potential repercussions are noted, such as higher upfront costs and responsibility placed on consultants. Lastly, it recommends real estate companies adopt standard operating procedures and appoint internal reviewers to manage risks under the revised system.

1. WELCOME

2. IMPACT OF EASE OF DOING BUSINESS
ON
BUILDING PERMISSION AT M.C.G.M.
Presented By : Shri Kartikey Joshi

3. STATEMENT OF PURPOSE
Lets introspect the obstacle in earlier process and create awareness about
Government’s resolve to ease business which in my opinion is nothing but
creating an efficient and inclusive ethos for enterprise and business
which is in the interest of all societies and Growth of the country at large.

4. PRESENT PROCESS AND OBSTACLES

5. OBSTACLE NO 1
TONS OF PAPER WORK

6. OBSTACLE NO 2
UNENDING REPORT
WRITING BY S.E.

7. OBSTACLE NO 3
JOURNEY OF THE FILE

8. OBSTACLE NO 4
UNENDING IOD COMPLIANCES

9. OBSTACLE NO 5
GETTING FULL CC

10. TIMELINES FOR OVERCOMING
ALL THESE OBSTACLE
TO GET OC

14. DISMAL TRACK RECORD OF M.C.G.M.
OVER THE LAST DECADE 2004-2015
❖An average 1,500 projects p.a. entered the system for approval during 04-15.
❖An average of 730 OCs and 118 BCCs p.a. were granted during 04-15..
❖ Proposal getting OC have averaged to 46% during 04-15.
❖The ultimate approval - ‘’BCC’’ average during 04-15.

15. BENEFITS OF EASE OF DOING

16. STATE TOEING TO THE CENTRE'S PUSH ON
EASE OF DOING BUSINESS
❖Toeing to the central government’s ‘ease of doing business’ policy,
the state government has resolved to make all permissions/
clearances required from local bodies online. If developers pass on
the benefits of quicker approvals to home buyers, private housing will
become affordable, especially at a time when 69% of Mumbai’s
unsold housing stock is priced above Rs. 1 crore.

17. PROMISING FUTURE
❖MCGM will become IT-enabled
❖Applications for any approval/ NOC will get registered online
❖The IT systems will not accept an incomplete application
❖Intermittent timelines for each level in the approval process.
❖Parallel approvals of majority of the requirements so that different
processes operate simultaneously and converge at the time of approval.

18. THE NEW PROCEDURE AND
THE REPERCUSSIONS OF
EASE OF DOING BUSINESS

19. STAGING OF TO-BE APPROVAL PROCESS
❖The whole approval stages are categorized in 9 Stages as thus:-
❖Pre-Application Stage.
❖Application Stage.
❖Intimation of Disapproval & Commencement Certificate up-to plinth
❖Further CC Stage
❖Amendments to Building plans and layout
❖Street Connections to Municipal Services
❖Occupation Certificate & Bldg Completion Stage
❖Layout , Subdivision , amalgamation completion.
❖Handing over of Reservations & Amenity etc

20. TO BE PROCESS IN EASE OF DOING BUSINESS
DECLAREDECIDE DELIVERDEVELOP
PROPOSAL
OC/BCC
MCGM
IOD
CC
Design Dig ground &Soft launch Complete & Comply Certify & Close outConceptualize
DAILY MANAGEMENT
POLICY MANAGEMENT
Consultant
remarks/design &
completion has replaced
various department
Noc’s,remarks,revalidati
on/completion
Parallel approvals of
majority of the
requirements so that
different processes
operate simultaneously
and converge at the time
of approval.

21. HIGHLIGHTS
❖IOD and CC up-to Plinth in 7 Days, pending approval of concessions,MoEF,HRC
❖Neither Separate permissions from DP & Drainage approval required nor its needed to await for
concessions to apply for IOD/CC which will be given in 23 days + 7 days.
❖Not only all other Noc’s like SWS,HE,PCO,Assessment,parking Noc,CFO,Tree will be given 7 Days ,
their completion is deemed granted within 15 Days of time lapse.
❖Consultant remarks/design & completion has replaced various department
Noc’s,remarks,revalidation/completion
❖No report writing by SE & CC to be issued at AE level also File can be shifted in case of delay beyond
7 Days.
❖All forms & reports to be prepared by L.S./Architect and whole responsibility is of various consultants
❖Tenants consent & agreeability to be certified by advocates & no agreement is needed.
❖Title document to be self certified by owner
❖OC & BCC to be granted together.

22. REPERCUSSIONS
❖MCGM will have to deal with new proposal & still process the backlog , this fact coupled with the Inadequate resources to meet the
intermittent timelines for the process would be a grave challenge in itself.
❖Higher up-front investment & accelerated cash outflows for premiums ,charges for Plinth IOD & CC received at one instance , in addition to
accelerated payment schedule for various consultant fees , principal architect & municipal architect fees as the designs get incubated early on.
❖Proposal going subsequently for Concessions after issue of Plinth IOD & Plinth CC will be prone to M.C.’s discretion so corruption.
❖Work if started on Plinth IOD/CC , before concessions are approved & if any changes/modifications are suggested subsequently , then the
construction carried out up-to plinth will not be taken as a defense to comply with M.C.’s approval .A list of 35 concessions are already indicated.
❖Construction to be demolished , if any changes/modifications are suggested as per MoEF, HRC , and other Authorities, if any , at a later stage.
❖More responsibility on Developers to honor consultant remarks & even more responsibility on consultants to follow departmental guidelines .
❖Consultant will be not be under Developers pressure anymore and they will be married to each other for a project as stakeholders. In case of
change of consultant the new consultant must compulsorily be in consonance with the offered remarks . Builder responsible via comprehensive
undertaking to make good the mistakes in remarks issued by consultants at his cost & consequences.

23. BUSINESS STRATEGY
❖Real Estate Companies should now adopt SOP System for Liaison & Design
Terminals clearly specifying working manual, approval formats and project K.P.I.’s
❖Appointing a Battery of Internal Proof Readers and equip them with proof
checking consultants enabling checks and balances averting systemic risk.
❖Top Management must accord approval on specifically designed formats which
have recorded risks , associated costs and alternative strategy.
❖Appointing various consultant on derivable based work order linking payment
scheduled with quality of delivery.

24. Thank you & Lets Debate