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Consequently, pursuant to an amendment dated August 6, 2008, regulation 33(23A) and regulation 33(23B)
were inserted in the DCR, wherein directions in relation to construction of rental houses on unencumbered land
were issued. In terms of the said regulations, for construction of rental houses on unencumbered land by land
owner or any other agency approved by MMRDA within the limits of suburbs and extended suburbs of greater
Mumbai, the FSI shall be 3.00. Additionally, for construction of rental houses on unencumbered lands by
MMRDA on land vested with them within the limits of suburbs and extended suburbs of the FSI shall be 4.0
and out of 4.0 FSI, 25% of 4.0 FSI shall be allowed for commercial use which can be sold in open market to
subsidize the component of rental housing. The regulations also provide for eligibility for allotting rental
houses, building details and other requirements.
Development Control Regulations for Greater Mumbai, 1991 (Development Control Regulations)
The Development Control Regulations were formulated under the Maharashtra Regional Town Planning Act,
1966.
The Development Control Regulations apply to building activity and development work in areas under the
entire jurisdiction of the Municipal Corporation of Greater Mumbai. The Development Control Regulations
provides for an alternative to acquisition under the Land Acquisition Act by way of Transfer of Development
Rights (TDRs). The permissible floor space index (FSI) defines the development rights of every parcel of land
in Mumbai. If a particular parcel of land is designated for a public purpose, the land owner has an option of
accepting monetary compensation under the Land Acquisition Act, 1894 or accept TDRs which can be sold in
the market for use elsewhere in Mumbai. Regulation 34 the Development Control Regulations states that in
certain circumstances, the development potential of a plot of land may be separated from the land itself and may
be made available to the owner of the land in the form of TDRs. Regulation 33 (10) of the Development
Regulations provides that additional floor space index will be allowed to owners/developers of land on which
slums are located where such owners/developers are prepared to provide 269 square feet dwelling units free of
cost to the slum dwellers. The remainder of total development rights can be used as TDR. The Development
Control Regulations also set out standards for building design and construction, provision of services like water
supply, sewerage site drainage, access roads, elevators, fire fighting etc.
Development Control Regulations for Mumbai Metropolitan Region, 1999
The Development Control Regulations for Mumbai Metropolitan Region, 1999 ("Development Control
Regulations for MMR") apply to the development of any land situated within the Mumbai Metropolitan Region
as defined in the Mumbai Metropolitan Region Development Authority Act, 1974. Regulation 15.3.1 states that
no person can carry out any development (except those stated in proviso to section 43 of the Maharashtra
Regional Town Planning Act, 1966) without obtaining permission from the Planning Authority and other
relevant authorities including Zilla Parishads and the Pollution Control Board.
The Development Control Regulations for MMR have demarcated the region into various zones for
development purposes including urbanisable zones, industrial zone, recreation and tourism development zone,
green zones and forest zone. Regulation 15.3.5 states that development of land in these zones (other land in
specified urbanisable zone and industrial zone) shall not be permitted unless the owner undertakes to provide at
his own cost physical and social infrastructural facilities including roads, water supply, sewage waste disposal
systems, electricity, play grounds etc. as well as any other facilities that the Planning Authority will determine.
Regulation 15.3.7 provides that all developments which are existing prior to the Development Control
Regulations for MMR, which are authorised under the Maharashtra Regional Town Planning Act, 1966 and
Maharashtra Land Revenue Code, 1966 but which are not in conformity with the use provisions of the Regional
Plan or these Regulation will continue as though they are in the conforming zone and will be allowed
reasonable expansion within existing land area and within FSI limits prescribed by these Regulations
.
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(C) Laws Relating to Employment
The Contract Labour (Regulation and Abolition) Act, 1970
The Contract Labour (Regulation and Abolition) Act, 1970 (“CLRA”) has been enacted to regulate the
employment of contract labour in certain establishments and to provide for its abolition in certain
circumstances. The CLRA applies to every establishment in which 20 or more workmen are employed or were
employed on any day of the preceding 12 months as contract labour. The CLRA vests the responsibility on the
principal employer of an establishment to make an application to the registered officer in the prescribed manner
for registration of the establishment. Likewise, every contractor to whom the CLRA applies is required to obtain
a license and is not permitted to undertake or execute any work through contract labour except under and in
accordance with the license issued. To ensure the welfare and health of the contract labour, the CLRA imposes
certain obligations on the contractor in relation to establishment of canteens, rest rooms, drinking water,
washing facilities, first aid, other facilities and payment of wages. However, in the event the contractor fails to
provide these amenities, the principal employer is under an obligation to provide these facilities within a
prescribed time period.
The Building and Other Construction Workers’ Welfare Cess Act, 1996
The Building and Other Construction Workers Welfare Cess Act, 1996 (“Cess Act”) came into force with effect
from August 19, 1996 to provide for the levy and collection of cess on the cost of construction incurred by the
employer with a view to augmenting the resources of the building and Other Construction Workers Welfare
Board constituted under the BOCWA. Under the Cess Act, the cess amount is levied and collected from the
employer within 30 days of completion of construction project, at a rate not exceeding two per cent but not less
than one per cent of the cost of the construction.
The Payment of Wages Act, 1936
The object of the Payment of Wages Act, 1936 (“PWA”) is to regulate the payment of wages to certain classes
of employed persons. The PWA makes every employer responsible for the payment of wages to person
employed by it. No deductions can be made from the wages nor can any fine be levied on the wages earned by a
person employed except as provided under the PWA.
The Minimum Wages Act, 1948
The Minimum Wages Act, 1948 (“MWA”) came into force with the objective to provide for the fixation of a
minimum wage payable by the employer to the employee. Under the MWA, every employer is mandated to pay
not less than the minimum wages to all employees engaged to do any work whether skilled, unskilled, manual
or clerical (including out-workers) in any employment listed in the schedule to the MWA, in respect of which
minimum rates of wages have been fixed or revised under the MWA.
The Payment of Gratuity Act, 1972
Under the Payment of Gratuity Act, 1972 (the “Gratuity Act”), an employee in a factory is deemed to be in
‘continuous service’ for a period of at least 240 days in a period of 12 months or 120 days in a period of six
months immediately preceding the date of reckoning, whether or not such service has been interrupted during
such period by sickness, accident, leave, absence without leave, lay-off, strike, lock-out or cessation of work not
due to the fault of the employee. An employee who has been in continuous service for a period of five years will
be eligible for gratuity upon his retirement, superannuation, death or disablement. The maximum amount of
gratuity payable shall not exceed Rs. 10,00,000/-
The Payment of Bonus Act, 1965
The Payment of Bonus Act, 1965 (“PBA”) was enacted with the objective of providing of payment of bonus to
employees on the basis of profit or on the basis of productivity. The provisions of the PBA ensure that a
minimum annual bonus is payable to every employee regardless of whether the employer has made a profit or a
loss in the accounting year in which the bonus is payable. Under the PBA every employer is bound to pay to
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