People in Mumbai who have been living in old, dilapidated buildings owned by landlords now have the power to rebuild their homes under the cluster development scheme.
Cluster redevelopment involves a single builder redeveloping all structures in the project in a minimum area of one acre.
Last week, the state modified development rules to allow tenants to initiate the process, a right only landlords had so far.
Given the meager rents landlords collect in these tenanted structures, they have traditionally shown little interest in maintenance.
While earlier only a landlord could name a developer, the state’s new clause in the Development Control Rules (DCR) 33 (9) says a 70 per cent majority of existing tenants can also choose a developer.
Speaking to HT, T.C. Benjamin, principal secretary of the state urban development department, said: “Earlier, only landlords could take the initiative, and there was the danger of tenants agreeing to redevelopment under pressure.”
The developer then submits the proposal to the civic High Powered Committee. The tenants’ proposal — like the landlords’ — is vetted and forwarded to the urban development department.
If the ministry is satisfied, it recommends a Letter of Intent (LOI), which ensures no other developer is allowed to enter the project, and planning begins. Benjamin said the developer has one year after the issuance of the LOI to convince all the landlords to agree. Only after this will the project get other clearances. Lalit Gandhi, chairman of the Remaking of Mumbai Federation, and managing director, Lok Group, said it would speed up redevelopment.
“Tenants, especially in old buildings, are the worst sufferers. Now, they are no longer at the mercy of landlords,” said Gandhi. Property advocate Vinod Sampat said: “Landlords can no longer neglect redevelopment, tenants can force them to accede to their demands.”
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