Recently,the Govt of Maharashtra gave a Green Signal to the proposal of 4 FSI in Gaothan Areas of Navi Mumbai. FSI is the amount of construction legally permitted on a plot of land. In Navi Mumbai, the current FSI is 1.5 (Max) for 99% of the areas. For the remaining 1% of tender plots, the FSI is just 1. So basically, if the Area of the plot is a 100 square meters, one is allowed to construct a building measuring 150 square meters of Built-Up area. This 150 square meters does not include areas like the lift, staircase, common passages, meter room, pump room, lift room etc.
FSI is very very important in determining the strain, load and quality of life in a given area. The more the FSI, the more the population living in a given area, the more the crowd, the more the traffic, the more the stress on civic services like drainage, parking etc.
But this FSI rule has been blatantly flouted in the Gaothan areas (areas in every node where the original inhabitants of Navi Mumbai were resettled when their land was taken over by the Govt in 1970’s). Over a period of time, The villagers in connivance with local leaders and Municipal officials turned this Gaothanarea into a hotbed of illegal construction by constructing full fledged housing complexes on the plots meant for their personal residence, throwing all rules into the dustbin and turning these areas into concrete jungles with nobody to answer to. Many a times these buildings collapsed and caused casualties too..but the problem persisted as nobody wanted to kill the golden goose which laid a lot of eggs for the local politicians and municipal officers along with the villagers who constructed buildings and sold flats at dirt cheap rates to gullible buyers.
After many years of delay, the govt recently announced a scheme whereby all illegal constructions which have consumed upto 4 FSI would be ‘legalised’.
Most people think that this decision means that Gaothan areas will now become a builder’s paradise where huge buildings (highrises) will be constructed and flats sold to buyers. However this is far from the truth.
In reality this scheme will only …
- Legalize the constructions which came up before December 2012 !
- It will not change the FSI rules applicable in Navi Mumbai Gaothan areas in any way !!
- No highrises will be permitted in Gaothan Areas !!
- Structures which have consumed more than 4 FSI will still face action !
- Any structures with more than the allowed FSI ( 1 or 1.5) that come up henceforth after 2012 will be demolished !!
- The FSI rules already incorporated in the GDCR (General Development Control Regulations) of Navi Mumbai are still valid and have to be complied by all.
The next time someone tells you about the goldmine of 4 FSI in Gaothan areas, remember what you read here.
In early 1970’s and 80’s, when CIDCO took over the development of Vashi (Navi Mumbai) as a satellite city, it constructed various Apartment complexes in Vashi, Juinagar, Sanpada, Nerul, Belapur etc and sold them to prospective buyers for a very cheap rate to attract people to Navi Mumbai.
It helps to recall that in the early 80’s,Vashi (Navi Mumbai) was considered a failure.
These apartments ranged from 200 sq ft to 1000 sq ft.Gradually,with the advent of private builders and launch of 12.5% Scheme,A lot of private builders made Navi Mumbai a worthwhile destination.The Cost in Vashi was between 200 to 300 rs per sq ft.Several residents of CIDCO buildings started selling their flats to buy flats in private constructions.However,there was a slight hitch in selling the CIDCO flats.
CIDCO has sold flats based on a strict condition that before selling the CIDCO flats,owners will have to take permission from CIDCO and they will have to share 50% of the profit from sale with CIDCO.
This gave rise to various tactics to evade these additional charges.
For example,a flat in E type apartments (3 bhk @ 1000 sq ft) which was purchased at Rs 30,000 in 1973 started fetching a price of Rs 3,00,000 in 1980,which meant that 1.5 lakhs would have to be paid to CIDCO as profit share in case the flat owner wanted to sell the flat.
Most people started selling their flat on POA (Power of Attroney),thereby depriving CIDCO and the State of massive funds.
This POA later gave rise to various other issues, due to which owners couldn’t sell their flats,couldn’t become society members,couldn’t obtain loans etc.
In 2011,the Govt announced an amnesty scheme wherein the defaulters could pay the set fees and penalty as a one time charge to regularize their flats in these buildings…however this was applicable only to flats purchased before June 2009 and the whereabouts of the seller (original owner) was not known (traceable).
We recieve a lot of queries regarding CIDCO transfer charges and whether it is applicable to new flat purchases directly from the builder.
The short answer to that question is…..
If you buy any property in Navi Mumbai,you are liable to pay transfer charges to CIDCO.,when you buy from the builder as a first purchaser,you are not liable for transfer charges.
Because all land in Navi Mumbai belongs to CIDCO.They only give land on lease (long lease) and hence they are like a giant landlord.Now logic should tell us that if we are sitting on a property that belongs to a giant landlord (in this case its CIDCO),it is but obvious that if you want to leave and make someone else sit in your place,you will need the approval of the landlord.Period.
What happens if you dont pay CIDCO transfer charges?
Well,that depends on whether you are the buyer or seller of the property and whether you and the buyer before you has paid the stamp duty or not.If the buyer before you has paid the transfer charges,then you dont have to worry.Just pay the transfer charges and youre ok.But if the buyer before you has not paid the transfer charges then you are liable to pay it when you purchase it..sorry but that’s the hard fact.
So make sure that you purchase a flat only after checking that the previous owner has paid the CIDCO transfer charges.If you buy from the builder,you don’t have to pay transfer charges as it will be applicable after the formation of the society and at the time of conveyance.Sometimes even the banks are not aware of these transfer charges,and the builders don’t want to tell you at the time of selling the flat to you as they don’t want any additional expenses to come in the way of their sale.
What do transfer charges depend upon?
They depend on the carpet area (not built up area) of the flat.
For property above 100 sq.mtrs. the applicant should submit the required documents to Asst.Estate Officer, CIDCO Bhavan, CBD Belapur.
Are transfer charges fixed?
No,they change from time to time.So please check for the latest rates.
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Latest CIDCO Transfer Charges – 2016
Download PDF CIDCO TRANSFER CHARGES 2016
Case A: Where the Party outrightly purchases Flat /Home from CIDCO in buildings made by CIDCO eg.Millenium tower,Spaghetti,NRI complex.
- Allotment Letter from CIDCO
- NOC from CIDCO .
- Receipt of payments made to CIDCO.
- No Valuation Report required.(Plus point)
- No Title Clearance/Search Report needed (Plus point)
- Sale agreement and sale deed between the owner and CIDCO.
Case B : Where CIDCO has given Land to individuals and the individual constructs the House.
This is applicable only to a house on an independent plot.The house should already be constructed.
- Agreement to lease (with blank copy of lease deed format) between CIDCO & applicant.
- Blue print of building plan approved by CIDCO or NMMC (depending on who is in charge of that area)
- NOC from CIDCO for taking loan for purchase of the property.
- Architect’s detailed estimate for Construction of house.
- Development Agreement.(In case the plot is owned by one person and the building is made by another/builder)
- In case of Construction of Common Walls : Proof of allotment of Plots to adjoining Plot holders and their NOCs for construction of common walls by the applicant.
- Affidavit of not letting the House partially or wholly.
- CIDCO or NMMC commencement Certificate for construction.
Case C : Where CIDCO has given Land on lease to builders (TENDER PLOTS)
(This is the most common scenario,when you purchase from Builder who has got the plot via tender.This can be verified by checking the documents with the builder)
- Agreement to lease (with blank form of lease deed attached) between CIDCO and builders.
- Commencement letter for construction i.e. Sanction letter from NMMC town planning/building proposal dept.
- NOC from CIDCO & Builders for mortgaging property to a bank (when you take loan for purchasing a property/flat)…since all land in Navi Mumbai belongs to CIDCO.They only give land on long lease.
- Registered agreement for sale between builders and flat purchaser alongwith Registration receipt of the agreement.
- Receipts of payments made to builders.He has to provide you this for every payment made to him before,during and after purchase.
- NOC from builders in prescribed format.
- Blue print of architect’s plan with sanction/approval from NMMC building proposal dept.The stamp is on the blueprint itself.Normall on top right corner.
Case D : Where CIDCO has given directly to Society
(This is what the Wadhwa scam on Palm beach was all about.)He had taken land sanctioned for Mathadi workers and converted adjacent plots into one big plot.The case had gone to the supreme court and construction is on now.It happens only in India)
- Agreement to lease between CIDCO & Society (alongwith blank form of lease deed).
- Blue Print of building Plan approved by CIDCO authorities.
- Commencement certificate issued by NMMC(building proposal dept) or CIDCO,depending on whose jurisdiction the area falls under.Normally,areas after belapur i.e.Kharghar,Ulwe,Kamothe,khandeshwar etc,fall under CIDCO jurisdiction.Areas from Vashi to Belapur fall under NMMC now.Earlier these areas also fell under CIDCO jurisdiction.
- Society’s registration certificate.
- List of Society members approved by CIDCO.
- NOC from CIDCO & Society for mortgaging property to any bank.This happens if you take a loan for purchasing property.
- Allotment letter issued by Society to the flat purchaser.
- Share Certificate.
Additional Requirement if Society assigns development rights to developers / builder.
- Development agreement between Society and Builder
- Power of attorney from Society and Builder.
- Partnership deed of builder’s firm (If its a partnership firm)
- NOC from builder for mortgaging property to any bank.
- Registered agreement for sale between builders & applicant with Registration Receipt thereof.
Case E : Resale of CIDCO flat (Flat purchased directly from CIDCO) by one person to another
- Original deed of apartment between CIDCO & vendor.
- Registered agreement for sale between seller and buyer with Registration Receipt.
- NOC from CIDCO for transfer of vendor’s rights in favour of applicant and for mortgaging property to any bank.
- NOC from Association of Apartment Owners.
- Original Allotment Letter of Vendor.
Case F : Where Flat/House constructed on freehold land
- Latest 7/12 Extract with N.A. permission/City Survey extract.
- Agreement for purchases of land, if any.
- Title Certificate & Search Report for 15 years.
- Development agreement between Land owners & developers.
- Partnership deed of developers wherever necessary.
- Agreement for sale between Developers/Land owners and applicant duly registered with Registration from Receipt thereof.
- NOC from builders.
- Blue print of building plan approved by competent authority
- Sanction Letter.
For any further clarifications please call
Sky Properties : 9833802522
We can verify legal documents of any property in Navi Mumbai and protect your investment.
12.5% Gaothan Scheme of CIDCO