MCHI proposed Code of Conduct for realtors

“Every MCHI member has to follow new code of conduct otherwise ready to face dire consequences”, Bomani Irani MCHI Secretary says, MCHI also sets up Consumer Redresser Mechanism

Mumbai: Kick-starting a Consumer Redresser Mechanism, The Maharashtra Chamber of Housing Industry (MCHI), the representative body of real estate industry, has decided to enforce a “Code of Conduct.” among its developer members.

Announcing this, MCHI President, Mr. Paras Gundecha said that the code of conduct aims to promote the highest standards of quality and service in the industry, apart from ensuring transparency and fair dealing among the Developers, Promoters and Customers. Besides, the 1,000 member body has also put in place grievance redressal mechanism to address issues confronted by customers.

MCHI has formally adopted the Code of Conduct at its 29th Annual General Meeting (AGM) held on September 13, 2011 in Mumbai. Present at the meeting were Shri. Subodh Kumar, (IAS), Municipal Commissioner, Municipal Corporation of Greater Mumbai (MCGM) and Shri V K Sharma, Director and Chief Executive, LIC Housing Finance.

Shri. Kumar, who released the “Code of Conduct” document, underlined the importance of the civic body and MCHI working in co-operation to address various issues that impacts sector. In his address he explained various measures that he is working to put in place to expedite the pace of clearances.

He said that he is keen to ensure a transparent system of approvals and clearances, where by any scope for discretion is minimized. This, he hoped, will ensure improvement in transparency levels.

Mr. Paras Gundecha, President, called upon MCHI members to wholeheartedly adopt the Code of Conduct, so that relations with all stakeholders become smooth and cordial. In this context, he emphasized on the Consumer Grievance Cell as a progressive measure towards ensuring self-regulation.

MCHI code of conduct deals with the five major clauses – Full disclosure on property title, agreement for sale on carpet area basis, possession details, any additional charges details and arbitration & mediation – These are aimed at bringing in more transparency in customer interaction. The code which has come into force from 13th September, 2011, governs all the projects commenced after this date, will see effective implementation of redresser cell to handle grievances.

Mr. Boman Irani, Honorary Secretary, presented the Annual Report for the year 2010-11. He informed members that MCHI had pledged to fully support Maharashtra Government’s goal of “Homes for All”, and asked members to rededicate themselves to achieve this goal.

There is a three member redresser committee, constituted by MCHI managing committee, which will suggest remedial measures to overcome hurdles and ensure speedy disposition of the customer grievances.

Free Housing in Mill Land Deferred

“As per the survey reports there are over one lakh mill workers those are eligible for free housing, so it would be impossible to accommodate all mill workers, but state could provide only 30,000 at the most” CM, whereas supreme court has ordered to allot free housing to mill workers."

The Municipal Commissioner Subodh Kumar has introduced the several new guidelines such as 100 percent premium on extra FSI, restrictions over residential and commercial constructions and many more norms has been implemented. According to Kumar these new proposed guidelines has been introduced to control the violations in constructions. In the aftermath of civic body’s tightened grip over the real estate sector builders have increased the property rates and between this tug of war common has grilled.

After these moves now civic body turned to mill lands, whereas mill land is not a new issue but still state government is tightening its grip over Mill land owners. As per the new imposed laws to deter the development permissions, for those developers who yet haven’t handed over the land which is suppose to allotted to the BMC and Mhada within the time frame of three months. According to the mentioned in DCR the allotted piece of land has divided into two parts from which Mhada is supposed to construct affordable houses for mill workers as well as economically weaker sections, whereas BMC is expected to use the part of allotted land for the purpose to upkeep the basic amenities.

Contrary to Supreme Court’s decision to provide free housing to mill workers on mill land, state government has denied to provide free housing to mill workers. While discussing with the Mill workers on Mill land issue, CM Prithviraj Chavan has said that “as per the survey reports there are over one lakh mill workers those are eligible for free housing, so it would be impossible to accommodate all mill workers but state could provide only 30,000 at the most. So at end of the meeting state government has cleared that “government will not allot these houses free of cost.”

However in 2001, the Vilasrao Deshmukh government, using a loophole in the Maharashtra Town and Planning Act, 1966, amended DCR 58 to DCR 58 (I), which stated: “Only land that is vacant on mill properties, that is, with no built-up structure, would be divided by the one-third formula.” This was a bonanza for mill owners who now had to part with only a minuscule percentage of the land. However, little activity was seen on the mill lands until 2003.

Apart from this if we observe this issue in the previous year state government had made promises that government will it provide free housing to mill workers. And percentage to be earmarked and handed over for development by MHADA for Public Housing / for mill worker’s housing as per guidelines approved by Government to be shared equally. So, “NTC has handed over about 1,70,000 sq ft of land to MHADA for mill workers’ housing that can be built for almost 2500 workers. Another 1,00,000 sq ft of land has been handed over by NTC to BMC for developing gardens and greener zones” for the betterment of the Mill workers living conditions. But all the promises are standstill there is no progress in those promises.