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2. In the scheme of redevelopment, the developer, who is the Thirteenth Respondent, has agreed to provide accommodation to the existing occupants, including all the Petitioners under Development Agreements dated 29 August 2006, 30 April 2007 and 4 June 2010.

All the existing occupants, including the Petitioners, are to be provided permanent alternate accommodation free of cost on ownership basis.

In the meantime, until the permanent alternate accommodation is complete, the developer has agreed to provide monthly compensation, at the rate of Rs.60.70 per sq. ft. of carpet area for residential premises and Rs.87.75 per sq. ft. or, as the case may be, Rs.114.78 per sq. ft. for non-residential premises, depending on whether or not they have frontage on the main road. A corpus fund of Rs. 5 crores is to be constituted by the developer. The Court has been informed that an amount of Rs.3.5 crores has been paid towards development charges to the Municipal Corporation and a Bank Guarantee of Rs.25 crores has been issued as the security for construction of rehabilitation buildings for the tenants/ occupants. The developer has to furnish a bank guarantee of Rs.15 crores each year against post VBC 3 wpl2641.10-10/13.12 dated cheques securing the payment of future monthly compensation.

Out of 305 tenants/occupants, about 87% have consented to the scheme for redevelopment which has been sanctioned by the Second Respondent. Plans have been sanctioned by the Municipal Corporation. A majority of the tenants/occupants has entered into agreements for permanent alternate accommodation, which have been duly registered. A majority of the tenants/occupants has vacated the premises in the old buildings comprised of Dalal Estate. The Maharashtra Housing and Area Development Authority issued a notice under Section 88(3) of the Maharashtra Housing and Area Development Act, 1976, declaring that the buildings in question forming part of Dalal Estate are dangerous and dilapidated and and cannot be repaired within the prescribed ceiling of expenses. The Municipal Corporation issued a notice under Section 354 recording that the old buildings are in a ruinous condition. Dalal Estate comprised of 4 buildings divided into 20 blocks, each consisting of a ground floor and four upper floors. All these buildings are prior to 1940 and belonging to the cessed "A" category. There is no dispute about the factual position that the repair cess was paid to the Second Respondent and the buildings were repaired in the past.

In the meantime, substantial progress has been achieved towards the redevelopment of the property in question. 285 out of nearly 305 of the occupants have consented to the scheme for redevelopment under DCR 33(7). 235 occupants have vacated their structures. The process of redevelopment cannot be allowed to be stalled in this background.

The redevelopment envisages that all occupants would be given an area equal to their existing areas by way of permanent alternate accommodation free of costs. The developer has agreed to pay rental compensation to each of the existing tenants, in order to enable them to secure transit accommodation during the period of redevelopment.