The supreme court on Monday lifted all legal hurdles for construction of residential and commercial properties in about 200 acres of forest land in the city as it permitted developers and realtors who have paid the net present value (NPV) fine for their such properties to even create third party interests.
While the builders had built their arguments saying the high court had erred in declaring the land reserved for forests by ignoring the fact that the constructions on it had been completed many years ago, the residents’ welfare associations aired their grievance against the state government, the town planning ministry and others who sanctioned the construction plans, thus legalising the apartments that a large number of Mumbaikars now own.
The apex court had earlier said the builders would have to give in writing that they would abide by the outcome of the appeals even if they had paid the NPV. The court had also appointed a central empowered committee (CEC) to suggest a feasible formula to resolve the crisis of construction in the space-crunched and over-populated city.
The CEC recommended that residents living in houses constructed before June 22, 2005, pay an NPV of Rs8 to Rs12 per square foot for regularisation, while builders whose projects were completed before this date, but have not yet been given occupation certificates, pay five times the NPV, ie, Rs40 to Rs60 per square foot. The builders who want to redevelop factories and commercial establishments into residential complexes were asked to pay 10 times the NPV, or Rs80 to Rs120 per square foot.
The money invested in these flats or commercial units is estimated to be around Rs25, 000 crore, and involves at least 45 residential projects if those in the western suburbs are also included.
The order is expected to have immediate bearing on the incomplete projects as now there is no legal bar against making them ready for occupancy. However, in the forthcoming hearing, the court may consider the residents’ plea that builders can’t impose the NPV on them.
