URBAN LAND MANAGEMENT assignment 1
By: Archa Patel (PP0005917) | palak panchal (PP0006416) Shrujal Patel (PP0006017) | Vishwa Mistry (PP0005017) Guided by: Prof. rutool sharma
Urban Land Management - Land Development Process: A case of Shapath V
High - Rises in Ahmedabad Ahmedabad, with a high rate of population growth, is now entering the race of quality living and commerce along with various other modern cities of India. The city known for its low-rise development and high density is now giving a room for development of sky scrapers and high rises into its development control regulations. Ahmedabad Urban Development Authority in its new sanctioned Development plan 2021, aims at keeping the city compact, and promote high rise buildings along the mass transit corridors, on the banks of river Sabarmati and along the Central Business District. In this transitional phase of changing skylines of the city, it becomes much more important for us to the processes, complications and challenges that lie in development of such grand scale projects within the city of Ahmedabad. This paper through a case study on one such high rise buildings in Ahmedabad have tried to explain the processes of land procurement and property development involved in it.
Case of Shapath V Shapath V, located along the S.G. Highway lies within the boundary of AMC, is developed by Savvy Infrastructure group ltd. in the year 2012. The building is a high end commercial building, covering up an area of 30,000 Sq. m. The building lies into the New West Zone and more specifically onto R1 zone of development plan, which guided the further dos and don’ts on that parcel of land.
The process of project development as mentioned in “Urban Land Management: Concurrent Legislations, Overlapping Regimes, and Consequences – Centre for Urban Land and Real Estate Policies.” can be further detailed into four broader stages of Land Procurement, Land Mutation, Construction and Sales.
Stage 1 - Land Procurement The land that holds Shapath V firmly, lies in R1 zone under the jurisdiction of Ahmedabad Municipal Corporation, in Vejalpur TP Scheme Area. Shapath V was built by amalgamation of six plots whose FP number are 9, 8, 16, 17, 18, 19 in Vejalpur TP 24.
Urban Land Management - Land Development Process: A case of Shapath V
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Sr. No. 1 2 3 4 5 6
Survey No. 860/2/1 - 860/2/15 839/1 837 841/1 840/2 873/1
Final Plot No. 9 19 16 18 8 17
Area in Sq. m. 8275 484 1327 100 214 1099 11499
Shapath V building has been developed in partnership of four firms namely: A. Shiva Satya Hotels Pvt. Limited M/s Shiva Satya Hotels Pvt. Limited, have given them a contract to construct a hotel in the name of “Crown Plaza� located at Shapath V. Earlier they had purchased land from M/s. Savvy Reality and Infrastructure Pvt. Limited, their subsidiary company in the year 2007-08 for Rs.12 crores. M/s. SIL have 75% stake in M/s. SRIPL. The written agreement to construct hotel building for Rs.148 crore is with M/s. SRIPL. The construction work is being carried out by M/s. SIL. B. Millenium Park Holdings Pvt. Limited M/s.SIL have provided supervision service for plot developments, in which M/s. SIL advise them for plotting scheme of their residential service. C. Savvy Homes Company It is a partnership firm. To this unit also M/s. SIL had provided supervision services D. Savvy Infrastructure Company It is partnership firm, to them also M/s. SIL provided supervision services
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The land for Shapath V was previously occupied by a co-operative housing society and Shree empire states offices, limiting the chances of getting NA permissions due to presence of existing residential and commercial structures on it.
Acquiring the land for such a big commercial development was not an issue for a developer like Savvy, as the Cooperative Housing Society and Shree empire states office was paid the market amount to giveaway the land and development rights. The project has been foreseen by the developer and therefore the land for the project was bought in 2003 however the construction started in 2008.
Stage 2 - Land Mutation and agreements NA certificate: Since the land was earlier under the hold of premise co-operative housing society and Empire state offices pvt. Ltd. the land already had its NA conversion done, which the developers of Shapath V need not had to look after. However, The LU change permissions were taken in order to change the land use from residential to commercial. Sale Deeds and Agreements: There were two set of Agreements that were done during the course of project. One between the Developers and Co-operative Housing Society and Another between the Developers and M/s. Shiva Satya Hotels Pvt. Ltd. for construction of “CROWN PLAZA HOTEL”. The society was approached by the Developers i.e., M/s. SIL & M/s. SRIPL with the proposal to develop the said land as commercial project at their risk, cost and expenses. The developers has been absolutely empowered and authorized to develop and build commercial project on the said land of commercial premises in the name and style of “SHAPATH-V” for the members of the society present and future. The developers, from the gross receipt from the proposed project shall pay to the society for grant of this development rights the fix amount of Rs.7,44,14,674/-. All profit or loss that may be gained, received or incurred from the project shall absolutely belong to the developers and the society shall not be liable for the same. The market value of the said land as appearing from Jantri is about of Rs.3,50,00,000/-. Hence stamp duty of 1% as prescribed under Article 5(ga) of schedule-1 of Bombay Stamp Act, 1958 as applicable to the State of Gujarat is paid on this agreement. This agreement is signed by the Society and SIL & SRIPL. Another Agreement was made between M/s. SRIPL and M/s. Shiva Satya Hotels Pvt. Ltd. for construction of “CROWN PLAZA HOTEL”: a) The affairs and administration of the said society is completely and totally controlled by M/s. SRIPL; All members of the said society are nominees of M/s. SRIPL; M/s. SRIPL is also holding power of attorney of the said society to deal with and dispose of the land of the society. b) M/s. SRIPL sold plot admeasuring 7000 sq yards carved out of final plot No. 9 to Urban Land Management - Land Development Process: A case of Shapath V
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M/s. Shiva Satya Hotels; c) It is agreed between them that exclusive construction contract of the proposed Five Star Hotel building with 220 rooms (approximately) shall be given by M/s. Shiva Satya Hotels to M/s. SRIPL on “Turn Key basis�. d) Apart from construction, M/s. SRIPL will provide furnitures, fixtures, amenities, luxury items, carpets, residential and bedroom furnitures, solar system, lifts, escalators, safety system, etc of international high-class standard.
Stage 3 - Construction Phase After the land mutation process, the third phase of the land development process is the construction phase. Most of the project planning related activities are carried out in this stage. During this phase the project will have to undergo number of various permissions and clearances starting from building approval to occupancy certificate. Building Approval: The first step requires an approval from authority for sanction of building plans/ building permit under the provisions of development plan and building regulations. During this phase, different building regulations including zoning regulations, building bylaws, FSI etc have to be looked into. The intensity of development is govern by these regulations. As the project location falls under X zone of the development plan, the permissible building use and development regulations are as follows: FSI: Maximum Permissible FSI 2.7 Permissible Uses: Dwelling 1,2&3; Mercantile 1&2, Business, Religious, Educational 1&2, Institutional, Hospitality 1&2, Assembly1,2,3&4, Service Establishment, Sports& Leisure, Parks, Temporary Use, Public Utility, Public Institutional According to regulations the savvy group had taken a building plan approval for 20 story commercial project. And the construction of the project was started in X after getting building approval from AMC. NOC clearance from various departments: Apart from building approval there are various other permissions and clearance which needs to be taken during the construction phase. And these includes fire clearance, DG certificate, electrical clearance, environmental clearance etc. Completion Certificate: After the construction is completed, Completion certificate is mandatory for the constructed building before selling of the units. The completion certificate is issued after inspection process by the local body. And the completion certificate will be issued by the local body only if the builder or owner has constructed the building as per the approved plan. In case of Shapath 5, the builder has followed all the development regulations. So, the completion certificate was issued by the AMC in the year of X and it took almost 3 months to issue it.
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Occupancy Certificate: The last step in the construction phase is to get occupancy certificate from the local body. An occupancy certificate is required after the completion of construction. It is only after procuring this certificate; the building can be occupied for use. And the authority will issue the certificate only if the project ensures the regulations of the number of trees, parking Space, certificate of lift Inspector etc.
Stage 4 - other considerations Apart form the regular approvals and NOCs from the AMC there were certain other permissions taken from various departments. Since it was a highrise buildings Special NOC from the Airport Authority was taken, Fire department and other measures were also strictly considered and inspected at various stages of project development. Apart from the NOCs the developers were also planning to make this project one of the green buildings in Ahmedabad, therefore respective considerations of appropriate amount of green spaces, the materials and constructions technology, waste management and various other parametres recommended by the Indian Green Building Council were also considered.
Stage 5 - Sale Selling of Hotel Crown Plaza and Shapath 5 were done separately. As per the agreement, after construction of hotel building, it was given back to the Shiva Satya Hotels Pvt. Limited. And Savvy Realty and Infrastructure Private Limited (SRIPL) is responsible for the selling of the units of Shapath 5.
issues and challenges There were no specific set of challenges faced during the land procurement stage, the society was paid the market amount for the project and the land was easily acquired by the devleopers in the year 2004. It was during the execution phase the challenges started to emerge in the form of delays in the approvals and permissions for a high rise building. There were certain objections by the adjacent residing members as there were socities present over there and a high rise coming up, but then according to the officials the clear development titles and permission documents supressed their voices.
Urban Land Management - Land Development Process: A case of Shapath V
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