
CAG: Builders claimed benefits, didn't pass it on to buyers
In March 2003, Mhada's Mumbai building repairs and reconstruction board (MBR&RB) issued a no objection certificate (NOC) for the redevelopment of Raghav Bhuvan and Africa House under the then-prevailing rules, which allowed a floor space index (FSI) of 2.5. Each resident was to be rehabilitated and allotted carpet area equivalent to their previous occupancy, with a minimum of 225 sq ft and a maximum of 753 sqft.
In March 2011, DCR rules were amended to permit a higher FSI of 3 for such buildings, with the added condition that the size of the tenements for eligible occupants would be increased accordingly.
In March 2016, the developer opted to avail of the benefits of the amended FSI scheme with a revised NOC from Mhada despite the fact that the flats already constructed did not meet the new size criteria.
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In March 2019, MBR&RB issued an NOC allowing the developer to obtain an occupancy certificate (OC) for the sale component from BMC. The audit report said, "Since the size of the tenements had not been increased, the revision in the NOC was irregular and resulted in undue benefit solely to the developer - through the grant of additional built-up area (BUA) of 363.59sqm, valued at Rs 8.61 crore".
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It added, "The increase in BUA of the rehabilitation component from 1,516.9sqm to 1,783.1sqm as per the revised NOC was only due to the inclusion of the common passage area in the BUA of the rehabilitation component without any actual increase in the size of the tenements."
CAG said to check the implementation of redevelopment cases under Regulation 33(7) of DCR 1991/DCPR 2034, the audit scrutinised projects. "Out of 14 test-checked completed projects, the audit noticed that the developer had claimed benefits without providing due benefit to tenants as discussed (in the Raghav Bhuvan and Africa House case)," the report said.
A tenant of one of the rehabilitated buildings said, "We were unaware of the details and were not given any additional area. In fact, the building got OC in March 2021 but still the society is not formed, which is illegal. We are facing several difficulties; our lift is not functioning since the past 24 days. No one is there to resolve the issue."

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