SC orders redevelopment of cessed Mumbai property

September 5, 2008	(Be the first to rate this story!)  Loading ...
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The Supreme Court, on Thursday, ruled against the November-2006 Bombay High Court directive restricting redevelopment of cessed property in Mumbai. Cessed properties are those constructed prior to 1960. The government collects cess from residents of these buildings for the repair of these buildings. The SC order will open up 225 acres in the island city and see redevelopment of over 18,000 dilapidated buildings. Real estate prices could drop 30% in some parts of the city, say experts. Over two million people living in chawls would gain from Thursday’s judgment, according to Mumbai-based Property Redevelopers Association (PRA).

A two-member bench of Justice Pasayat and Justice Sadashivan of the apex court set aside the earlier order of Justice Gokhale of the HC. The court waived all HC-imposed restrictions, which include compulsory open space, MHADA certification and approvals from new committees. Following the SC order, builders are upbeat about the redevelopment plans. According to Pujit Aggarwal, chairman & managing director, Orbit Corporation, and spokesperson for PRA, “Of the 19,642 cessed buildings, only 1,000 dilapidated buildings have been redeveloped so far. Legal tenants will now get ownership of flats with enclosed bathrooms and toilets.” Aggarwal said, “We feel that the Supreme Court’s move is a shot in the arm as the real estate market in Mumbai. While funds to the tune of Rs 1 lakh crore are expected to be invested in the redevelopment process in the next 10 to 15 years, we are planning to invest Rs 2,000 crore in Greenfield redevelopment of dilapidated buildings in the central mill land area.” Aggarwal said the real estate market in Mumbai would now see the launch of at least 50 real estate schemes every month.”

News Published Under:   Mumbai |

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