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Re-Development Schemes : Residents and Tenants Get a Meagre Share Of Profit Or Are Cheated.

17 March 2011 5 Comments

Well its not even a month when RTI Activist Editorial Team had revealed how MHADA has been playing around with people in terms of Re-development and terming them Repairs, here is one more addition to it which is sent by Mr.Vijay S. Dahibavkar who himself has been distressed by Re-Development of his Building which was approved by MHADA with only 70% of Tenants first approving the Re-Development.

This also brings to core the significance of appointing Regulators for the Re-Development Industry, as this is where time and again the Tenants or Residents are cheated.

This is what Vijay has to say about the Re-development of his Building ,Vijay was a resident of a old building called Mohan Building located at Forjett Hill Road, Grant Road, Mumbai 400036. The said building has now been re-developed and named Veesita Luxuria.

Here is how Vijay has described the entire Re-Development process which has shaken him up “I would like to bring to your notice as to how we have been cheated and put to inconvenience by the builder who re-developed our old building.

Way back in the year 2002, our then landlord Mr. Mukesh Shah introduced us to one Mr. Sanjay Bafna of M/S Sisodiya Investments Pvt. Ltd. Saying that he had sold the building to him so he could re-develop it and that we tenants should co-operate with him. However in the very first meeting with the builder, we realized that we tenants would not benefit in any way. The builder did not give the tenants any corpus fund or extra area and also the compensation we received in lieu of our consent was insufficient. Due to such terms many tenants were against re-development. However, as is the practice with builders, he started the using the divide and rule method. Many of the tenants fell prey to his tactics and sold their flats outright to him.

By 2005, he started sending us letters saying that he had got consent from 70% of the tenants residing in the building and as such I too should vacate the premises. At this point we approached MHADA and got details under the RTI Act. We were shocked to find that he had shown consent of 70% of the residents and procured an NOC from MHADA by malpractice.

When we brought all this to his notice he did not pay any heed to it, on the contrary we started receiving letters form MHADA asking us to vacate the premises. Things started going from bad to worse and to evade eviction and due to undue coercion we settled the matter with the builder after he agreed to allot us a carpet area of 525 sq. ft. (which is mentioned in our original agreement with him). He had also verbally agreed to include flower bed and other areas so as to arrive at the 525 sq. ft. area as mentioned in our agreement. He also agreed to pay us a monthly compensation of Rs.15000. Thus on December 17th 2006 we handed over the premises under our tenancy to him.

In January 2010 he told us that the building was nearing completion and that we should pay the stamp duty and get the registration done. He also handed to us a draft of a new agreement wherein undue terms and conditions were levied on us. For example:

1)      We were asked to pay Rs.50000 towards society charges.

2)      Rs.50000 as legal fees

3)      Rs.20000 per month as maintenance which had to be paid in advance for 1 year amounting to Rs.240000.

4)      No non-vegetarian food to be cooked or eaten in the flats.

At this point all the tenants came together and had a meeting with Shri Sachinbhau Ahir, the then Griha Mantri. Due to his intervention the builder agreed that we could register the old agreement and also paid our pending rents till May 2010.

On 27th July 2010, I got my agreement duly registered, whereupon I was told that I could take possession of my flat. However, on inspecting the flat I found that there was no water connection, no lift was installed and some other minor details were left unfinished and hence I did not take possession. By Oct 2010 most of the tenants had completed the procedure of stamp duty and registration and hence we collectively went to the builder’s office.

At this point he gave each of us a letter which he had drafted on our behalf addressed to him, in which it was mentioned that though he had not procured an Occupation Certificate we wished to take possession of the flats and that we would be held responsible for any consequences. I would also like to bring to your notice that in the said letter he has mentioned the area allotted to me as 39.74 sq. mts.(427.76 sq. ft.) which is less that the area he had promised to give me according to our registered agreement which is 525 sq. ft. When questioned regarding the same he said that he could not officially mention that area but he would get it done. I fail to understand why he can’t do that as the area is clearly mentioned in the agreement and has already been registered. We have also paid the stamp duty according to the area mentioned in the agreement. In the past we have suffered a lot as we trusted him on his words. We therefore no longer wish to go by his oral assurances. We are also at a loss to understand how the flowerbed area can make up for the deficit area. Also note that no rent has been paid to us since June 2010 although the delay has been from his end.

Vijay is shattered with the Treatment meted out to him and  wants that justice is done to him, He ends stating ” I am an Indian born and brought up in Mumbai, Maharashtra and that now after 60 years I have to face such treatment at the hands of a builder is a matter of concern and regret.”

This is again one more eye opener for the Chairman of MHADA Mr.Manhas, to look in to the Scams which have started popping out from the Re-Development Board.

Mr.Sachin Ahir has been extensively speaking on Re-Development at the last meeting of (MSWA) Maharashtra Societies Welfare Association, but it seems even he has failed to resolve this issue which was brought to his notice.


  • Akbar Shah said:

    I completely support Mr.Vijay S. Dahibavkar and Bafna Builders should be ordered to cooperate and compensate for the loss.

    The monthly maintainance charges of Rs.20,000 p.m.for such a small area is baffling.
    Why it should be paid 1 year in advance?
    And again why it should be paid to builder?
    Why society formation charges of Rs.50,000 to be paid to the builder?
    Builder is just trying to extort money from tenants.
    The construction work should be completed 100%, immediately.
    Occupation certificate is not procured yet.
    Stamp Duty & Registration charges which is paid by Mr. Dahibavkar, should have been paid by the builder. Builder should compensate for this.
    Carpet area should be 525 sq. ft and not 427.76 sq. ft.
    Legal fees should be borne by the builder.
    Builder should pay rent from June 2010 onwards.
    Govt. should not allow the builder to sell flats if the existing tenants are not satisfied.
    Such builder’s license should be cancelled and confiscated and banned from constructing any building in future.
    Bafna builders should be heavily penalized so that no builder would try to harass poor innocent citizens who do not have anybody to support.
    Redevelopment is done to help tenants to find a new and better house to stay but builders have taken this opportunity to mint money by challenging Indian Laws, MHADA and POlice for their own benefit.

  • Zahid S said:

    Isn’t it the Great Indian Re-Development Scam which is run by the Builder lobby & MHADA authorities. After reading the complete article, i am now convinced that simple working class people like us can be duped and cheated by Builder’s easily and at any given point of time. Just because they can bribe the corrupt government authorities, they can do whatever they intent and can get away easily. Mr.Vijay S. Dahibavkar, is just one of the persons, out of the millions of citizens of Mumbai who are cheated every day, either by the Builder’s or their Agents. It is like a person’s life long saving, belongings and happiness is taken away in seconds. Just imagine, for his own house, Mr.Vijay S. Dahibavkar has to pay additions 4 lakhs, and not being receiving the monthly compensation of Rs.15000 on time by the Builder. To top it, he has also been cheated of the agreed sq. ft. of 525. This is a clear case of DAY LIGHT ROBBERY. Also, after residing there for almost 100 years, the Builder dictates terms as to what they can eat and what they cannot eat. Wow, Britishers left us long back, but they have left Builder’s, Corrupt Politicians, Corrupt Authorities to rule us and dictate terms to us. As per The Constitution of India, an Indian citizen has the right to be sheltered, right to live where ever he desires, and right to eat whatever he wants to eat. But no, we are slaves in our own country. Slaves of the bloody Politicians & Builders. Let me bring to light another incident, in the same line of being dictating terms to us. Indian Muslim born and brought up in India and being Indians are not given permission to purchase flats by the Builders in many parts of Mumbai, or as a matter of fact in many places in India, just because either they are Muslims or non-vegetarians. They is a modern trend nowadays, that the Builders build Buildings as per specific community. Also, many builders have started construction on illegal lands, such as mangroves. Why, just cause they can bribe the government authorities and get away with anything. They approach old society building with Re-Development Schemes, cause they know that corrupt politicians & corrupt government authorities are in their pockets. This will happen to every one as long as we let it happen. If we have to stop this, we the rightful citizen of this country, be united together and fight against widespread corruption and malpractices.

    Signing off…. Me Indian, Me Mumbaikar….

  • Kunal said:

    As a staunch maharashtrain i am appalled at the state of affairs in our country and in maharastra. Its not unusual to find corruption and cheats at every nook and corner in a system as in this case add to that the slight racial twist to this matter (no non veg to be cooked) my guess is that people from bordering vegetarian states are going to be in residing in this society (if you can call it that). I don’t understand why maharastrains are so accepting in their nature they should be dictating terms to this builder that only non veg food is to be cooked in the premises. I find these demands beyond reasoning and that fact that even mhada officials are in cahoots with this builder just makes this situation hopeless. A fight against any system be it the corrupt builder lobby or the corrupt goverment officials comes at tremendous financial cost. How are the people affected going to get justice when corruption is so deeply entrenched. This case is fit some non profit political organisation or NGO’s and for them to take it forward on behalf of the old local folks of Maharashtra who might be tired of fighting their case.

  • Sachin G said:

    So this is called democracy and we people live in democratic country.The law is meant for ordinary people not for those (here builder) rich people.Everyday we read in newspaper and see what happen its unbroken chain.What happen to our govt. Ohh! what govt. which is made by us to rule us. Mr. Vijay Dahibavkar will get justice? and when?….their must be action.their should stop builder lobby to malfunction.Wake up indians……………..before it becomes common. We are civilized people and don’t want live in jungle again.

  • Manu said:

    We are already living in a jungle ruled by the Madam from Italy.Throw out these corrupt ba….ards by every means available.