Mumbai: The developers of Abhyudaya Nagar in Kalachowkie, Keystone Realtors (Rustomjee), who have a 51 per cent share, and DB Realty with 49 per cent, have sought a rebate on stamp duty similar to the concession provided to those undertaking tripartite redevelopment projects on Brihanmumbai Municipal Corporation (BMC)-owned land. Residents and the developers met state housing minister Jitendra Awhad and the Maharashtra Housing and Area Development Authority(MHADA) officials on February 13 to discuss issues posing a hindrance to the redevelopment.
As per the preliminary order, the developers were supposed to pay stamp duty of Rs 150 crore. However, they challenged the stamp duty fee amount on merits before the Mumbai city collector and as a result, the amount was revised to Rs 63 crore. The developers then moved the Pune Inspector General of Registration and Controller of Stamps, seeking further reduction. Meanwhile, the policy decision demand is pending before the state government.
It was pointed out that as per a 2019 government resolution, developers carrying out redevelopment on BMC land would only be charged Rs 1,000 per tenement. The concession is limited only to BMC housing projects, so the Abhyudaya Nagar developers have contended, the same principle should be applied to MHADA layout projects also, as the MHADA is also a government entity.
Chandresh Mehta, director of Abhyudaya Nagar company, the Rustomjee Group firm undertaking the redevelopment, reminded that people from the low-income group live in Abhyudaya Nagar MHADA colony.
At the meeting with Awhad, residents also spoke of how the MHADA and the BMC were wrongly charging them with service and water supply charges respectively and as a result, the bills were pending. Awhad promised to resolve these issues. The developers said, only after the charges are rectified and MHADA issues a 'no-due certificate' could they proceed further.
The proposed redevelopment is planned in four phases and will be complete in about 15 years. However, the project handed over to Keystone Realtors in 2016 is yet to see any progress. Interestingly, MHADA Vice President Milind Mhaiskar too had written a letter on June 27, 2019, requesting the application of the same stamp duty policy for MHADA layout redevelopment projects. Mhaiskar had hoped that with this step, redevelopment projects like Abhyudaya Nagar and others could be expedited.
There are 3,410 residents, including commercial owners, in Abhyudaya Nagar, who currently live in houses about 208 sq ft in area. After redevelopment, they will get houses with 685 sq.ft carpet area. Mehta explained, 24 lakh sq ft of the land will be used to build new homes for the original residents. The project will be more or less like a mini-township. However, only after the layout is approved can redevelopment occur. The floor space index (FSI), the MHADA's share of houses and the developers' saleable share is yet to be decided.
Nandakumar Katkar, chairman of the Abhyudaya Nagar Sahakari Gruhanirman Sansthancha Sangh Limited (housing federation) of 48 colonies said: "Initially, the developer had promised to pay the stamp duty, regardless of the amount and said they would later, contest this amount in the Bombay High Court. However, they have not kept their word and now, our redevelopment project is stuck and we are being forced to live in these old, dilapidated, 60-year-old buildings, risking our lives. Therefore, to expedite the matter, we have written a letter and met the minister to request a policy decision on the rebate in stamp duty."
The MHADA had built the three- and four-story buildings spread across 33 acres of land in 1957-1959 and it came to be recognised as an industrial workers' colony. About 1,300 houses were given to government employees, making it the first MHADA colony where workers and government staff lived in the same premises.
Solicitor of housing federation Devang Mehta said, "We have been informed by the developer that he has appealed before the Pune IGR against the adjudicating order and the matter is pending for hearing. Wherein, he (developer) has also pointed out the mistake in calculation of the corpus fund by the town planning department. The stamp duty on the corpus fund is calculated on 48 societies instead of 3,410 members. Consequently, the draft of the development agreement will also be revised to correct the flaws if any."
