Illegal Developments in Mumbai Spurring Protests

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More and more illegal buildings are being constructed in Mumbai as available land in the overcrowded city becomes increasingly scarce, according to analysts.

There are about 55,000 illegal buildings in Mumbai, according to the Estate Agents Association of India.

"Illegal constructions are on an inexorable increase," said Anuj Puri, the chairman and country head for Jones Lang LaSalle India. "When development clearances and increased FSI (floor space index) are not available, [when there are] areas which are defined by huge demand for built-up spaces and no supply of new land parcels, illegal buildings are and will always be an unfortunate but logical consequence."

Illegal structures in Mumbai are often built on land that is not even owned by the developer. In some cases, developers construct beyond what they have been permitted to build to capitalize on the city's sky-high property prices.

The problem came into sharp focus in recent weeks when residents at a development in south Mumbai staged protests and barricaded themselves in the compound - called Campa Cola - to prevent the demolition of portions of the buildings, ordered by the Brihanmumbai Municipal Corporation (BMC). 

The local authority had said that about 100 apartments in the towers were illegal because they were built beyond the five stories that the developer had been permitted to construct. A reprieve came through from the Supreme Court of India just as demolition work was set to begin, ordering a delay until May so the matter could be investigated and considered further. Residents who bought apartments in the compound that have been declared illegal say that they were unaware that there was any issue with the legal status of the structures when they invested. 

"My parents had no idea that there was a problem when we bought the apartment," said Deepti Doshi, a 25-year-old baker whose family owns one of the apartments that was due to be demolished. She explained that her family had paid 3.3 million rupees for their home 12 years ago and would be unable to afford another property if they were turfed out.

Vinaychand Hirawat, a 67-year-old retired businessman, who owns two apartments in the development, staged a hunger strike for more than a week to protest against the demolition.

"We want a permanent solution," he said. 

Yashwant Dalal, the president of the Estate Agents Association of India, said that the Campa Cola "drama" could deter some people from buying property in Mumbai.

Corruption is often cited as a major factor behind many of the illegal buildings in Mumbai.

"The problem of illegal buildings in Mumbai - and their impact on the existence of Mumbai's citizens and organizations, as well as its real estate market - is not a recent phenomenon," Mr. Puri said. "In fact, it is as old as the BMC itself. Whether they were the result of corruption and collusion or lack of vigilance of, the issue has always persisted in what is India's financial capital, which is also the country's most space-challenged city."