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(in short `FSI'). It also directed that certain site space has also to be provided.
2

3. The conclusions essentially are as follows:

"For the reasons stated above, we hold that the petition is very much maintainable and we read the provisions of the first part of D.C. Regulation 33 (7) to cover only the privately owned dilapidated buildings which require reconstruction and where the cost of structural repairs exceeds the monetary requirement specified under Section 88(3) of the MHAD Act (vis. Rs.1200/- per sq.meter as of now).

The Apex Court has observed in its order of 21st April, 2006 that no third party rights will be created and it further observed that it will be for the High Court to deal with that aspect. This being the position, we direct, with a view not to cause prejudice to the investors, that those projects of reconstruction, which have already been approved, will proceed as it is. However, the buildings not having the certificate of the cost of structural repairs exceeding Rs. 1200/- per sq. m. under section 88 (3) of the MHAD Act will not be permitted reconstruction henceforth. For future, the certificate under section 88 (3) of the MHAD Act, viz. that the structural repairs cannot be carried out within the monetary limits specified therein will be mandatory requirement whereafter if 70% of the occupants and the landlord come together, the benefit under Regulation 33(7) will be available and not otherwise.

Category "A" Buildings erected prior to 1/9/ 1940 Category "B" Buildings erected between 1/9/ 1940 and 31/12/1950 Category "C" Buildings erected prior to 1/ 1/ 1951 and 30/12/1969 It appears to be the common case that as of now as per the affidavit of the State Government in the present matter, there are some 16502 buildings in "A" Category, 1491 buildings in "B" Category and 1651 buildings in "C" Category.
Chapter VIII of MHAD Act provided for repairs and reconstruction of dilapidated buildings. Under section 88 from Chapter VIII of the MHAD Act, Mumbai Housing and Area Development Board was supposed to undertake structural repairs of the buildings, which were in ruinous condition and likely to deteriorate and fall. However, section 88 (3) provides that where the cost of the structural repairs exceed Rs.1200/- per sq. m., the Board may not consider such buildings for repairs and issue a certificate to that effect to the owner of the buildings and affix it on the building for the information of occupiers and then proceed to take action as provided in this Chapter. Thereafter where the occupiers were ready to contribute to the cost in excess of Ps.1200/- per sq. metre, the Board may carry out the structural repairs, for which a provision is made in section 89 of the MHAD Act. This will mean that oherwise the steps for reconstruction will be taken by acquiring the property as provided in sections 91 and 92 of this Chapter. Section 91 provides for reconstruction where a building suddenly collapses or becomes inhabitate due to fire, torrential rein or tempest or otherwise. Section 92 lays down the procedure for acquisition where however a building suddenly collapses."

9. The said 1969 Repairs Act was replaced by the Development Act, which consolidated various Acts, including the said 1969 Repairs Act, which was inserted into Development Act as Chapter VIII with modifications. Collection of Cess continued under the Development Act. Basic objective of Chapter VIII of said Act was to carry out structural repairs to the cessed buildings and if they were beyond economic repairs to acquire and reconstruct. This scheme of reconstruction/ redevelopment failed. Thereafter in 1986, Development Act was amended by incorporating Chapter VIIIA by which 70% of the occupiers of "A" category cessed buildings could come together and acquire the property through Development Act for "reconstruction" on paying only 100 months net rent to the owner [the rents were frozen at 1940 levels]. The owner had no role to play in this scheme. The occupiers could acquire the building, demolish the building and reconstruct it. This scheme of reconstruction/ redevelopment also failed. The Government Policy for reconstruction/redevelopment from 12th November 1984 to 23rd November 1991 granting FSI 2 or consumed FSI whichever is more, to the co-operative societies of the owners and occupiers also failed.