1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121

1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121
1234567890123456789012345678901212345678901234567890123456789012123456789012345678901234567890121
MANAGEMENT

WONDER LAND OF DCR-58

A. G. BAPAT
Consultant, Mumbai
For the last one year, textile mills in Mumbai are fighting a battle of almost “Life & Death”. The
development of land of Textile Mills becomes the most sensitives topic. The ‘High Court’ judgement
of 17th October 2005 was like a ‘BOMB BLAST’ for textile mill owners and developers. Finally, the
judgement of the Supreme Court came on 7th March 2006. It’s a ‘Landmark Judgement’. The crores
of Rupees of development plans of textile mills of mill owners were at stake. All top legal luminaries
of India were fighting the battle in Courts. Behind all this is ‘DCR-58’. This articles focuses light on
the related issues from view point of Mill Owners and what transpired recently in Court.
Key words: DCR-58, Public interest, Litegation.

INTRODUCTION HISTORY OF DCR-58 or latches are not considered as

valid grounds by courts to set aside
All of us know of the famous book In a way DCR-58 has really made cases considering the Public
‘Wonderland of Indian Manage- a ‘History’. Each and every word of Interest involved.
ment’ by Shri Sharu Ranganekar, regulation is legally examined and
Management Guru. “DCR-58” also different interpretations of same The main events are as under:
became recently a Wonder Land regulations arise. The Senior 1. DCR-58 of 1991.
for textile mills. In fact the very Counsels consider the
survival of textile mills in Mumbai interpretations as suitable to their 2. Appointment of a ‘Study Group’
is dependent upon the clients. Government of Maharashtra under the Chairmanship of Mr.
interpretation of DCR-58. The from time to time appointed Charles Correa Architech know
regulation is so ‘clear’ to many and committees, sub-committees, study as ‘Charles Correas
at the same time so ‘complicated’ groups and what not to examine Committee’.
to many that every time one reads regulation 58 and suggest ways
and means while framing 3. Appointment of Committee of
it he finds something new in it. All
regulation. These committees after Ministers and Secretaries know
top class senior counsels in India
visits to mills and long meetings as “Deshmukh Committee”.
were engaged in long conferences
to go into micro details of this and discussions furnished reports 4. DCR-58 Amendment of 2001.
“DCR-58” as it was a matter of to the State Government.
Thereafter Government examines 5. DCR-58 Clarification of 2003.
almost life and death for textile mill
the reports and decides and frames
owners. 6. Appointment of Committee
draft regulations and then invites
suggestions/objections from people under Chairmanship of Mr.
WHAT IS DCR-58? Deepak Parekh, Chairman,
and the officer before whom the
Urban Development Department hearings are held furnished his HDFC in 2005 know as
Government of Maharashtra report to Government through ‘Deepak Parekh Committee’.
published Development Control Director, Town Planning. Finally, the 7. Public Interest Litigation (PIL)
Regulation (D.C.R.) in 1991. The regulation is finalized at the cabinet filed by Bombay Environmental
Regulation 58 of DC Regulations level of State Government and
Action Group (BEAG) in 2005.
deals exclusively with the issued. After all this detailed time
development or re-development of taking exercise, the Public Interest 8. SLP filed by mill owners in
lands of cotton textiles mills. All the Litigations (PIL) starts and these Supreme Court against High
textile mills in Mumbai have to are filed in High Court and the Court Order in November
follow this regulation exclusively vicious circle continues with no end 2005.
and Regulation 56 and 57 are if sight and with the stay orders
related to industries other than from court all development stops. Thus is the journey of DCR-58 for
textile mills. Thus “DCR-58” Thereafter, these are appeals in 15 long years from 1991 to 2006.
assumes special prominence for upper courts and legal battles
continue. However, in a democratic WHAT IS THE ISSUE?
textile mill owners while
development or re-developing land set up, there is no alternative but In all this issue involved is very
of cotton textile mills. to accept this situation since delays simple. The issue is what is ‘Open

Journal of the Textile Association – May-June 2006 11

Land’ in DCR-58 and hence the title Total Covered Area of all floors 7. Mr. Soli J. Sorabjee
to this Article ‘Wonderland of DCR- F.S.I. =
8. Mr. Mukul Rohatgi
Plot Area
58’. Everybody says that it is very 9. Mr. Haresh Salve
simple but everybody interprets it There is three way sharing of open 10. Mr. Iqbal Chagla
in his own way. Thus the simple land and balance FSI as per DCR-
words ‘Open Land’ has turned into 58 amended in 2001 and clarified On DCR-58 and Open Land, the
considerable time and money in 2003. long conferences are held with
investment, so what are the various Seniors Counsels, study of word
1. 1/3rd to M.C.G.M. for ‘GREENS’
interpretations: and word of regulations, study of
2. 1/3 rd to MHADA for ‘Public
l ‘Open Land’ is obviously the the definitions given in regulations,
Housing’.
land that is open to sky. provisions in MRTP Act and
3. 1/3rd to Owner for Development Voluminous data, statements,
l ‘Open land’ is the land, which for residential / commercial. plans, written statements,
is ‘Open’ and the land which Arguments and what not! The legal
will become ‘Open’ after As per regulation actually it is not
exactly 1/3rd, 1/3rd as is commonly battle first in High Court and later
demolition of existing structures in Supreme Court continued with
on land. known but percentages very from
27% to 40% depending upon extent all legal luminaries fighting it out
l ‘Open Land’ is the total land and trying to convince or confuse
of land. Fur ther out of land
less area under plinth of the judges to have their viewpoint
‘Earmarked’ for ‘Public Housing
existing construction. upheld.
50% land in for mill workers'
l ‘Open Land’ is the total land housing.
less built-up area of existing WHAT IS PLINTH AREA
structures. It will be therefore seen as to what CONCEPT?
area for ‘Greens’ and what area for
l ‘Open Land’ is the total land There is a new dimension of Plinth
‘Public Housing’ naturally depends Area concept to determine open
less area required to protect
on quantum of Open Land and land. Plinth Area is defined in
the existing built-up area.
Balance FSI. development regulations as the
Some more intelligent people may Built up covered area measure at
Legal Luminaries
be able to add few more the floor level of the basement or
interpretations: ‘Times of India’ on Think of all top Senior Counsels of any storey.
8th March 2006 while publishing and all of them are representing
new item of Supreme Cour t one or other All agree on what is plinth area and
Judgement on development of land how it is determined. However,
1. Mr. Ram Jethmalani there is total confusion when plinth
of textile mills in Mumbai on front
2. Mr. K. Parasaran area concept gets related to open
page has further stated as under:
3. Mr. Gulam Vahanvati land.
Time of India dated 8th March 2006 4. Mr. Arun Jaitley
5. Dr. Abhishek Singhvi Let us see Table 1 and 2 which
What is open land?
6. Mr. R. F. Nariman illustrate the concept of open land
“Very very simply ……………
Table – 1
Assume a mill has
Area in M 2
land of 10 Acres
OPEN LAND
Land on which structures Sr. Item As per As per As per Plinth
are built up 6 Acres No. earlier amended Area
Open land 4 Acres 58(1)(b) of 58(1)(b)
1991 Dated
20.03.2001
WHAT IS SO IMPORTANT IN
(A) (B) (C)
‘OPEN LAND’?
1. Area of Plot 58458.36 58458.36 58458.36
The determination of open land is 2. Plinth Area N.A. N.A. 39304.83
a core issue and hence of special 3. Existing Built Up Area N.A. 75079.11 N.A.
importance. The sharing of land 4. Land component for Existing N.A. 56450.46 N.A.
Built Up Area (3/1.33)
entirely depends on quantum of
5. Land for sharing 58458.36 *2007.90 **19153.53
open land. It has a link up with 6. MCGM 19291.26 662.61 6320.66
Floor Space Index (FSI). The FSI 7. MHADA 19875.84 542.13 5171.45
is defined in regulations and MRTP 8. Owner 19291.26 803.16 7661.41
Act as under:: *Sr. No. 1 Minus Sr. No 4 **Sr. No. 1 Minus Sr. No. 2

12 Journal of the Textile Association – May-June 2006

based on earlier DCR-58 of 1991, In fact ‘Plinth Area’ has nothing to be five sections in the layout plan
amended DCR-58 of 2001 and do with the open land as far as of the mill, where one section will
based on plinth area concept. DCR-58 is concerned but this novel be for ‘Textile Use’, one for ‘Open
concept (Table –1) advanced, Use’, one for Public Housing, one
Column ‘A’ shows area to MCGM
created sensation and total for Mill Workers Housing, one for
and MHADA as at Sr. No. 6 and 7
confusion in the Supreme Court Commercial ‘ Residential. This will
based on DCR-58 of 1991.
while Table – 2) advanced by NTC be in a way ‘HOTCH-POTCH’
Column ‘B’ shows area to MCGM brought it back to the reality. development and none of the
and MHADA as at Sr. No. 6 and 7 sectors will be benefited. Instead
What is ‘Integrated Development’
based on amended DCR-58 of of this, if there are more mills then
of Land?
2001. large chunk of land of one complete
Members may recollected the mill area can be allocated to
Column ‘C’ shows area to MCGM
article on ‘Integrated Development MCGM for ‘Open Use’ as
& MHADA as at Sr. No. 6 and 7
of Land’ published in July-August ‘Recreation Garden’ and one
based on plinth Area Concept.
2003 issued of our Journal. The complete mill can be allocated to
This gives impression that ‘Greens’ basic idea behind ‘Integrated MHADA for Public Housing which
and Public Housing Shares are Development’ is if there are number will be better and desirable. This
considerably reduced to 10% as of Mill lands, development is was what was done by NTC in its
per amended DCR-58 as in permissible in an ‘Integrated Integrated Development Scheme.
Column (B) compared to area in Manner’. National Textile However, ‘Good’ concept is
based on Plinth Area concept as Corporation has 25 Mills in Mumbai converted to ‘Worst’ if somebody
in Column (C). and as such NTC opted for insists on specific prominent
However, let us see another ‘Integrated Development Scheme’. locations for Garden and Public
example. Housing and thereby depriving mill
owners of prominent locations
Table – 2 being developed for Residential /
Area in M2
OPEN LAND Commercial use. It is naturally to
Sr. Item As per As per As per Plinth be the choice of owner as to which
No. earlier amended Area land shall be surrendered to MCGM
58(1)(b) of 58(1)(b)
1991 Dated
and MHADA out of its holding and
20.03.2001 that is also the view of state
(A) (B) (C) government.
1. Area of Plot 36521.00 36521.00 36521.00
WHAT ARE SUB-REGULATIONS
2. Plinth Area N.A. N.A. 6815.00
3. Existing Built up Area N.A. 8397.43 N.A. OF DCR-58?
4. Land component for Existing N.A. 6313.86 N.A.
Built up Area (3/1.33) Regulation 58 has sub-regulations
5. Land for sharing 36521.00 30207.14 29706.00 (1) to (9) out of which key
6. MCGM 12051.93 968.36 9802.98 regulations are as under:
7. MHADA 9860.67 8155.93 8020.62
8. Owner 14608.40 12082.85 11882.40 58(1) - Lands of sick mills and/or
closed cotton textile mills
58(2) - Land of cotton textiles mills
This shows Greens and Public Area allocated to MCGM for
for pur pose of
Housing Shares to be nearly same ‘Greens’ and to MHADA for ‘Public modernisation
in Columns (B) and (C). Housing’ in an integrated manner 58(3) - Land of Cotton Textiles
is in fact better for development. Mills after shifting
So, it all depends upon existing built
This in fact was one of the main 59(6) - Lands of Cotton Textiles
up area in a mill and a general
suggestions of Charles Correa Mills considered sick and/
statement that ‘Greens’ and ‘Public Committee. Let us consider a case or closed or requiring
Housing’ shares reduces to merely where part of mill land used for modernization
10% due to amended DCR-58 is running mill and part of mill land is 58(1)(a) - Utilisation of existing built
totally incorrect. surplus. In such cases there will up area

Journal of the Textile Association – May-June 2006 13

14 Journal of the Textile Association – May-June 2006
58(1)(b) - Open land and balance FSI A chart showing various sub- The Supreme Court has said that
to be used as per regulations and land uses High Cour t Judgement is
percentages earmarked to
permitted is enclosed herewith. ‘Manifestly Erroneous’.
MCGM / MHADA / Owners
58(6)(a) - Re-constructions or The chart explains briefly the main As can be seen, the Supreme
demolition of existing provisions in various sub- Court has completely overturned
str uctures limited to
existing built up area of
regulations and was furnished to High Court Judgement.
demolished structures Supreme Court to make matters
including aggregating in clear and same turned out to be CONCLUSIONS
one or more structures very useful. Supreme Court of India, is the
58(6)(b) - Multi mill aggregation of
What really are judgements to High Highest Court in the country, and
built up area of existing
str uctures where an Court and Supreme Court its verdict is final on this issue. It is
integrated scheme for natural that some will like it and
demolition and reconstruc- The Judgement of Hon. High Court some will dislike it. The different
tion of existing structures was delivered on 17th October 2005 newspapers and on number of TV
of more than one mill and the judgement of Hon. Channels, a lot of stories are being
provided FSI is in the Supreme Court was delivered on
receiving mill land. circulated. The best option is to go
7th March 2006. In a span of 6
by interpretation of DCR-58 as
Mill owners thus have a wide months, the verdicts of Hon. Court
upheld by the Hon. Supreme Court
choice. of Mumbai and Hon. Supreme
and look ahead for better
Court of India came and let us see
National Textile Corporation opted development and sustainable
the level of difference between the
for Integrated Development development as otherwise all the
judgements of two courts, which
Scheme under 58(1)(b), read with time will be lost only in legal hurdles
are in fact diamentrically opposite
58(6)(b). and stoppage of development.
as shown in Table - 3.
There is always a ‘solution’ to any
‘problem’, unless one wants to
Table - 3 : Level of Defference in Judgement of two Courts convert the ‘solution’ into ‘new
problem’.
Sr. Judgement – Mumbai High Judgement – Supreme
No. Court Court of India Mr. Manmohan Singh, Prime
Minister of India recently said that
1. Open land would include land that DCR-58 is valid in law ‘Mumbai’ is ‘Financial Capital’ not
will become open after demolition of and land under existing only of ‘India’, but also of ‘Asia’.
structures. structures is protected for We are now seriously talking of
owner ‘Globalization’ and ‘Privatization’.
2. Clarifications of 28 th March 2003 Clarification is neither We are talking of conver ting
clearly violating MRTP Act and ultra vires of Section 37 ‘Mumbai’ into ‘Shanghai’. We are
Constitution of India. of MRTP Act nor violative keen for Foreign Direct Investment
of Constitutional Provi- (FDI) in Real Estate. The
sions. judgement of the Supreme Court
3. Sale of mill lands of NTC are clearly Sale of land of NTC mill will now encourage international
contrary to the sanctioned BIFR was not contrary to investors to invest in Indian real
Scheme. sanctioned BIFR Scheme. estate market. It will give positive
signal to the foreign investors.
4. Sale of mill lands are contrary to the Sale of land of NTC mills There is ‘Mumbai First’. There are
Supreme Court Order dated 11 th was not contrary to the
number of prominent people
May 2005 and 27th September 2002. orders of the Supreme
interested to see ‘Mumbai’ to be a
Court.
‘Landmark’ City, beautiful and safe
5. Integrated Development Scheme is Integrated Development to live in. The Supreme Court
not as per the sanctioned BIFR Scheme of NTC is as per Judgement will go a long way to
Scheme. DC Regulations and is
Liberation of Property Market. Let
permissible in law.
us not lose this opportunity. n

Journal of the Textile Association – May-June 2006 15

123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012
123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012
COMPANY NEWS
123456789012345678901234567890121234567890123456789012345678901212345678901234567890123456789012

l A.T.E. Marketing Pvt. Ltd. was right for

investment and
Zinser – Volkmann Seminar at
days are not far
Guntur
when Guntur will
Guntur a place well known for red be known as textile
chillies, tobacco and cotton hub of Andhra
witnessed an eventful evening on Pradesh.
12th May’06 at Hotel VijayaKrishna
International. The occasion was Mr. Gerd Moch,
Zinser-Volkmann seminar Sales Director of
organized by A.T.E. Marketing Zinser presented
Private Limited.Guntur is emerging latest techno-
as an impor tant textile hub logical develop-
especially for spinning units. ments in the field L-R Mr. R. Indrajith, Mr. Kiran Hanchate, Mr. Nimeyer,
Mr. Moch, Mr. G.V. Aras & Mr. Prashant Mandke
of speed frames
The seminar focused on the latest and ring frames. He emphasized
technology developed by both He presented the technological
on Zinser’s efforts and strong
Zinser and Volkmann. They shared advantages and benefits of two for
research facilities, which enable
with the audience the major one twisters. He also highlighted
them to provide state-of-ar t
features and benefits of their technology to all its esteemed features and benefits of the
products like Roving frame Zinser customers. Mr. Moch also successful FOCUS model. While
670 with Automatic doffing, Zinser discussed Zinser CompACT concluding he also mentioned that
351 and CompACT Ring frames spinning technology which was Indian textile business is growing
and Volkmann’s focus two for one been proven and accepted globally. at tremendous pace and needed
twisting machines. He concluded his presentation by more investments in modern
Mr. R. Indrajit, Regional Head of assuring the participants that by machineries to compete in global
A.T.E.’s Chennai office, welcomed using Zinser technology they will markets.
dignitar ies from Zinser and always cherish flexibility, reliability
Mr. Kiran Hanchate, Senior
Volkmann along with participants, and profitability.
Manager of A.T.E. sales for Andhra
which were more than 200, Mr. Prashant Mandke, A.T.E.’s Pradesh region, thanked the
comprising esteemed customers, Product Manager for Zinser and gathering for their valuable time
mill owners, textile technologist, Volkmann presented A.T.E.’s and participation for seminar in
managerial and senior managerial successful joint venture with Zinser large number to make it successful.
executives of various mills. for production of ZTS 68i speed He thanked Zinser and Volkmann,
Mr. G. V. Aras, Head of Textile frames at Ahmedabad. He A.T.E. colleagues, and media and
Engineering Group and Senior Vice elaborated on technical features press friends for wide coverage in
President of A.T.E. expressed his and advantages of these speed their esteemed publications.
gratitude to Zinser and Volkmann frames. He also mentioned that in
a period of just 4 years A.T.E. has Mr. Rushin H.Vadhani, Assistant
for their long-standing relationship
sold more than 200 speed frames Manager, Marketing, A.T.E.
and association with A.T.E. in the
across the country. Today, it has a compered the seminar, which
journey to success. He mentioned
strong reference list of all leading concluded with a press meet in the
Zinser has been with A.T.E since it
textile mill owners. evening followed by cocktails and
started its business on Indian soil.
dinner.
He discussed about the trends and Mr. Michael Niemeyer, Sales
growth in textile sector domestically Director of Volkmann discussed The seminar was covered by the
as well as internationally. He about the growing market demand local news channels namely Siti
suggested participants that the time for value added quality yarns. Cable and Gemini news channel.n

16 Journal of the Textile Association – May-June 2006