A significant order has been approved by the chief minister of Maharashtra which aimed at creating affordable housing in the city and  has a proposal wherein a portion of any  plot being developed has to be reserved for low-cost housing. In such case,The plots must have a minimum area of 2,000 sq m (half -an-acre) or above and shall be reserved for the middle-income, low-income and economically weaker sections of society.

Finally the government has taken some concrete steps to create affordable housing a reality though it was part of the Housing Policy announced in 2007.Once issued, this order will come into immediate effect.

As per the order, developers planning residential complexes in Mumbai,on plots measuring 2,000 sq metres or more shall compulsorily reserve 20% to 25% of the total built-up area for the middle class and the poor. The homes for the economically weaker sections and low-income groups will be 300-400 sq ft in size, while for the middle class, it will be 410-600 sq ft. 

But the developers don’t seem to be too keen about the issue. As per the HCHI President Sunil Mantri, viability of high end and luxury projects may get affected due to this factor and most of the developers in the city are developing such projects. According Mr. Mantri, this policy should have been restricted to townships and with no other option they will have to implement it.

Some people believe that though it is a good effort by the state, people from different strata may not want to stay together. Also nowadays, houses come with additional facilities like pools, club houses and fitness centres, due to which the monthly maintenance is quite high and many people may not be able to afford it. It would be better to construct a separate low cost buildings than combining the two types.

Like Mithi River banks in Mumbai, The banks of River Adyar, near Kotturpuram in Chennai shall be beautified soon. The Chennai Corporation recently has launched, Rs 85.87 lakh worth beautification project of the southern bank of the riverunder which, about 3.84 acres of the embankment area shall be developed as‘tree park’ within a period of 10 months.

River Adyar, contributes to the estuarine ecosystem of Chennai. The 42 km long river originates near the Chembarambakkam Lake in Chengalpattu district and is one of the two rivers that wind through Chennai and joins the Bay of Bengal at the Adyar Estuary. Adyar Estuary and Creek has been a heaven for migratory and resident birds for years. In spite of high pollution and anthropogenic activities, the area still attract hundreds of birds. The river takes in surplus water from about 50 tanks and lakes, small streams and the rainwater drains in the city but most of it is the waste from the city, that is drained into it and the other river, Cooum.
As early as thirty years ago recreational boats were available for leisure boating in Adyar for the tourists. Spoiled by filth and pollution, the river water now, is highly toxic and completely non-potable.

The tree park shall have 1 km walkway paved with granite, beautiful lawns and a visitors’ hall, where people can sit and enjoy the lush green surroundings.The PWD, ( Public Works Department ) along with an NGO, Nizhal, has planted almost 250 plant varieties of various evergreen and indigenous and tropical origin. A team of volunteers and students has been helping the greening process by pumping water from the lone hand pump to water the plants and adding manure. The park shall have decorative lighting as well as enough parking facility for two- and four-wheelers.

The services include daily garbage disposal ,cleaning of open drains, maintenance of underground sewerage system, sweeping of main and internal roads, adequate water supply at reasonable rates and de-sludgeing of septic tanks.

It was also suggested that wherever any of the infrastructure facilities made available do not meet the standards reckoned by the MCGM, the MMRDA will make good the costs for bringing the same to the reckoned standards.

The meeting was pertinent to the development and maintenance of the infrastructure in the city of Mumbai. Various other relevant issues regarding the city were also discussed during the meeting. Such efforts would bring MMRDA and MCGM, on the same page in order to  implement and coordinate many projects in the city.

The committee has stressed on the points that due to  to rapid and heavy construction activity in the city, there is  heavy load on civic infrastructure. It is being heavily burdened by a lot of construction activity in the city. There is barely any improvement in water supply, drainage and sewage systems, health and fire services, roads, parking facilities. The slum rehabilitation schemes are adding to the load. With total utilisation of increased in FSI, the burden on infrastructure will only increase.

With Bharat and Poddar Mill lands in hand, The company will surely be able to fulfill the dreams of our esteemed clients, said Mr. Vipul Bansal, CEO, Indiabulls.

The real estate company plans  to develop a multi storey  car parking lot for public. With the recent government policies on parking lots, when handed over to BMC, the developer gets an FSI of 4 in free sale component. With approved parking FSI, Indiabulls may get about 20.00,000 sq. ft. for development.

Indiabulls, with parking FSI, has invested about Rs. 13,000 per sq.ft and can sale it almost for Rs. 25,000 per Sq. ft. say the real estate experts.

Due to absolute scarcity of available lands for development and land prices going extremely high, Affordable housing within Mumbai city limits does not seem possible and can only be possible  in areas like Karjat, Panvel and other extended suburbs of the island city. The MMRDA is about to identify the nodal centres for housing schemes to be implemented through public-private participation.

In a recent meeting of C.M.with other ministers, the Secretary of Housing of the state of Maharashtra said that five lakh units shall be built  within next five years, though earlier, the objective was to create a million homes.

The state has signed a MoU with the MCHI for  constructing the five lakh housing units, that  will be done through a joint venture between a private developer and MHADA. The developer shall  provide the land and shall be allowed an FSI of 2.5.out of which, 1 FSI shall be for affordable housing, MHADA shall get 0 .75 FSI and developer shall get 0.75 FSI as a free cell component. A premium will have to be paid by the developer for off-site infrastructure.

The Housing Department would soon come up with recommendations on all issues related to affordable housing.

The service tax was added w.e.f. July 1^st,2010. Acoordingly the flat buyers were required to pay additional almost 2.5 % of the total value of the premises.

With the efforts of MCHI, who filed the petition on the issue on July 23^rd. the decision of stay was taken. The judges ruled that no coercive steps shall be taken against the developers for recovery of service tax in relation to the provisions in question. However they have clarified that the assessment may proceed according to the law.

 NTC Is planning to arrange for 10 more such auctions for the lands owned by them.

Maharashtra Chamber of Housing Industry through their Writ Petition have challenged the constitutional validity of the Finance Act 2010.

In a press conference,  President Mr. Sunil Mantri said that the government is trying to impose various taxes which is finally leading to the increase in the prices of the real estate stock. Finally the end user, the owner of the premises has to bare maximum of all these taxes and other duties. About 20-25% of the total value of the premises, are the taxes which are to be paid to the government.

Similar to selling of goods,  selling of a flat or a premises is also an activity of selling and not a service so the government cannot charge service tax on the sale of any premises. MCHI has taken a proactive stand that the service tax must be removed.

The organization is strictly of the opinion that the high rise committee should be abolished with immediate effect.  In cities like Mumbai, where there is hardly any availability of open plots for development, redevelopment of existing structures have no other option but to go higher in order to meet the ever increasing demand for houses.

While admitting the petition on July 23, 2010, filed by MCHI against the Union of India and others in the matter of ‘Service Tax levied on building under construction, a division bench of the Bombay High Court comprising Justice V C Daga and Justice S J Kathawala have granted interim stay until further hearing along with other companion petitioners on August, the 3rd, 2010.

The MCHI and other members through their Writ Petition have challenged the constitutional validity of the Finance Act 2010 seeking to amend the Finance Act 1994 introducing and explanation to section 65 (105) (zzq) and 65 (105) (zzzh) to introduce the Service Tax concept of ‘Deemed Service” for any commercial or industrial construction of residential complex done prior to obtaining completion certificate. 

Various other issues were also discussed in the conference. The joint ventures of redevelopment by MHADA with  the developers ,Urban land sealing act , Charging of vat in the real estate transactions, ULC, amendments in MOFA, formation of a regulatory authority for consumer grievances at state level, more transparency for the customers while doing the agreement and other transactions, Affordable Housing options etc. were some of  them. MCHI has made a list of almost 100 such issues and are trying to find solutions for the same. 

The MCHI  has put up some important issues like Automatic N.A.,with the higher authorities of the State Government of Maharashtra. The suggestions are accepted and the final decisions  related the matter, are  pending.

Acceptance of such issues can help fasten the development process. MCHI is also stressing upon implementing single window concept as far as the permissions for developments are concerned which otherwise results in major delays in development of any project.

Mr. Mantri also spoke on the new redevelopment regulations by the State Government. He said with the latest ammendments in the same, the redevelopment process of the existing buildings shall be much easier and faster and more and more redevelopments shall take place, which has remained the only best option within city limits. In the peripheral regions like, Thane, Dombivali, Kalyan, Mira Rd./ Virar, Pen and Panvel, the opportunities of green field developments are many and must be taken care of in order to provide affordable housing for the common man.

With the efforts by MCHI on the service tax matter, the Bombay High Court now has stayed the Service Tax that came into force from July 1^st 2010.

The Municipal Corporation of Greater Mumbai is a civic body that provides all basic civic amenities to the entire city including the properties being developed by MMRDA. The provision of additional FSI of  4 for better development and extra FSI for  the slum redevelopment authority (SRA) by the state government, has burdened city’s infrastructure which has put bigger burden on MCGM for water supply, sanitation and other amenities. In spite of providing these facilities,  the MCGM does gain anything from the process.

In order to find new sources of revenues, MCGM  has now demanded a revenue share in these developments and plot sales undertaken by MMRDA especially in the business districts of Wadala and BKC.