Amendment status not verified — confirm the current text below against the official source.
Power to grant loans for building purposes.— (1) Subject to the provisions of this Act and of the bye-laws made thereunder the Commissioner may, with the previous sanction of the 3[Improvements Committee] advance loans to persons desiring to erect buildings on land vested in corporation in consequence of the transfer to them of the property of the Board of Trustees for the Improvement of the City of Bombay constituted under the City of Bombay Improvement Trust Transfer Act, 1925 (Bom. XVI of 1925). (2) Any person desiring to erect a building on any such land may make an application to the Commissioner in the form prescribed by the bye-laws for a loan to be advanced by way of a mortgage on the security of the building to be so erected; and the Commissioner may, after making such enquiry as he thinks necessary, and subject to conditions mentioned in sub-sections (1) and (3) and the bye-laws made under section 461, advance such loans. (3) Every such loan shall be subject to the following, among other conditions:— (1) that the building in respect of which the loan is advanced shall be used wholly or mainly for residential purposes; (2) that the aggregate amount of the loan shall not exceed twenty thousand rupees in any individual case; (3) that the period within which the loan shall be repayable shall not exceed twenty years from the date of the first occupation of the building; (4) that the amount of the loan shall not exceed 60 per cent. of the cost of the building (including outhouses and other works, if any, connected therewith) irrespective of the period of repayment; (5) that the person to whom the loan is advanced shall execute a mortgage of the building (including outhouses and other works, if any, connected therewith) together with the site on which 1 These words were substituted for the words “the Mayor-in-Council” by Mah. 27 of 1999, s. 145(b). 2 This heading was inserted by Bom. 34 of 1954, s. 22. 3 These words were substituted for the words “Member-in-charge” by Mah. 27 of 1999, s. 146. 1888 : III] The Mumbai Municipal Corporation Act 299 they are erected in favour of the corporation containing such covenants and conditions as may be prescribed in the bye-laws. 1[354WA. Power of Commissioner to make advances for the purposes of increasing housing accommodation.— (1) Subject to the provisions of this Act and of the bye-laws made thereunder, the Commissioner may, with the previous sanction of the 2[Improvements Committee] advance loans to persons— (a) constructing or altering or undertaking to construct or alter buildings, intended for poorer classes; (b) carrying out or undertaking to carry out repairs to such buildings: Provided that, the Commissioner considers that having regard to the cost of those repairs or the financial position of the applicant, it is reasonable to give such assistance. (2) Person referred to in sub-section (1) desiring assistance by way of loan may make an application to the Commissioner in the form prescribed by the bye-laws for a loan to be advanced by way of a mortgage on the security of the building to be so constructed, altered or repaired, and the Commissioner may, after making such inquiry as he thinks necessary and subject to the conditions mentioned in sub- section (3) and the bye-laws made under section 461, advance such loans. (3) Every such loan shall be subject to the following among other conditions:— (a) that the building in respect of which the loan is to be advanced will, when the construction, alteration or repair has been completed be in all respects fit for human habitation and shall be used wholly or mainly for residential purposes; (b) that the amount of the loan with interest thereon shall be secured by a mortgage of the building (including outhouses and other works, if any, connected therewith) together with the site on which they are erected in favour of the Corporation containing such covenants and conditions as may be prescribed in the bye-laws; (c) that the period within which the loan shall be repayable shall not exceed thirty years from the date on which the construction, alteration or repair has been completed; (d) that the amount of the loan shall not exceed sixty per cent. of the cost of building irrespective of the period of repayment, and in no case shall exceed Rs. 30,000; (e) that, where the property intended to be mortgaged consists of a leasehold interest, no loan shall be made unless the unexpired period of the lease is not less than forty years from the date of the granting of the lease. 354WB. Power of Commissioner to promote and assist housing associations.— (1) The Commissioner, for the purpose of section 354RM may, with the previous approval of the 3[Improvements Committee] promote the formation or extension of or, subject to the provisions of this Act assist a housing association, as hereafter defined. (2) Where a housing association is desirous of erecting dwellings for the poorer classes, the Commissioner may, for this purpose with the previous approval of the 4[Improvements Committee] acquire land with a view to selling or leasing it to the association and the provisions of section 354RO as to the acquisition of land by the Commissioner shall apply accordingly. (3) The Commissioner may, for the assistance of a housing association, with the previous approval of the 5[Improvements Committee], make grants or loans to the association on such terms and subject to such conditions as to rate of interest and repayment or otherwise and on such security as the 6[Improvements Committee] may think fit. 1 Sections 354WA, 354WB and 354WC were inserted by Bom. 34 of 1954, s. 23. 2 These words were substituted for the words “Member-in-charge” by Mah. 27 of 1999, s. 147. 3 These words were substituted for the words “Mayor-in-Council” by Mah. 27 of 1999 s. 148. 4 These words were substituted for the words “Mayor-in-Council” by Mah. 27 of 1999 s. 148. 5 These words were substituted for the words “Mayor-in-Council” by Mah. 27 of 1999 s. 148. 6 These words were substituted for the words “Mayor-in-Council” by Mah. 27 of 1999 s. 148. 300 The Mumbai Municipal Corporation Act [1888 : III (4) For the purposes of this section, “housing association” means a society including a Co-operative Housing Society, body of trustees or company established for the purpose of, or amongst whose objects or powers are included those of, constructing, improving or managing or facilitating or encouraging the construction or improvement of, houses for the poorer classes, being a society, body of trustees or company who do not trade for profit. 1[354WBB. Power of Commissioner to grant loans to municipal officers and servants for houses.— Subject to such conditions as may be laid down in the bye-laws made under section 461, the Commissioner may, with the previous approval of the 2[Improvements Committee] grant a loan to an officer or servant of the Corporation (who is eligible for such loan under the bye-laws) for constructing or purchasing a house in 3[Brihan Mumbai] or for purchasing, on ownership basis, a flat in a Co-operative Housing Society or an apartment under the Maharashtra Apartment Ownership Act, 1970 (Mah. XV of 1971) in 4[Brihan Mumbai] or in such adjoining areas as may be specified in the bye-laws.] Provisions relating to lands comprised in Schedules W, Y and Z 354WC. Compensation to Corporation on resumption of certain land.— Whenever any land specified in Schedule W is resumed by the State Government or any land specified in Schedule Y and vested in the Corporation is taken possession of by the State Government under the provisions of this Act, the market value of the land at the date of resumption as determined by the Collector, or in appeal by the High Court, shall be paid to the Corporation by the State Government.]