A lesser-known provision in Mumbai’s redevelopment framework is creating challenges for developers, homebuyers and housing societies, with some completed projects facing delays in possession despite construction being finished.
The issue stems from Regulation 33(11) of the Development Control and Promotion Regulations (DCPR), a scheme introduced to encourage redevelopment by allowing developers to utilise additional Floor Space Index (FSI) and construct extra saleable area. In return, developers are required to provide smaller homes free of cost to the government under the Slum Rehabilitation Authority (SRA) framework.
The regulation has played a significant role in driving Mumbai’s housing society redevelopment activity. The additional construction potential allows developers to offer larger homes to existing residents while generating revenue from additional apartments. At the same time, the Permanent Transit Camps (PTCs) provided to the government are intended to support the city’s housing requirements.
Unlike conventional slum redevelopment projects, where rehabilitation buildings are constructed alongside the sale component on the same plot, Regulation 33(11) provides flexibility. A developer undertaking a project in Bandra, for instance, can provide permanent transit homes at a separate location such as Borivali.
However, the scheme comes with a crucial condition. Existing residents can occupy their redeveloped homes only after the developer hands over the required permanent transit camps to the government authority. Failure to complete this obligation can delay the entire project, even if the residential building is ready.
Developers are increasingly facing difficulties in arranging these homes. While many cite a shortage of suitable land for constructing permanent transit camps, others depend on purchasing such units from third parties. However, the limited availability of reliable suppliers has created a supply challenge.
Several established developers have avoided this risk by securing land parcels for transit camps in advance, creating greater control over project timelines. Smaller and mid-sized developers, however, are often left searching for these units closer to project completion, when demand is high and availability is limited.
The impact is now being felt by buyers and housing societies. While many buyers evaluate the developer, location and project amenities, fewer examine the redevelopment scheme under which the project is being executed. Housing societies too have often focused on redevelopment benefits without fully assessing associated obligations.
Experts believe buyers and societies should ensure that permanent transit camps are secured before committing to redevelopment agreements. Understanding the regulatory framework behind a project has become an important part of due diligence, as a completed home does not always guarantee immediate possession.
Source: Mumbai Mirror
