In early 1970’s and 80’s, when CIDCO took over the development of Vashi (Navi Mumbai) as a satellite city, it constructed various Apartment complexes in Vashi, Juinagar, Sanpada, Nerul, Belapur etc and sold them to prospective buyers for a very cheap rate to attract people to Navi Mumbai.
It helps to recall that in the early 80’s,Vashi (Navi Mumbai) was considered a failure.
These apartments ranged from 200 sq ft to 1000 sq ft.Gradually,with the advent of private builders and launch of 12.5% Scheme,A lot of private builders made Navi Mumbai a worthwhile destination.The Cost in Vashi was between 200 to 300 rs per sq ft.Several residents of CIDCO buildings started selling their flats to buy flats in private constructions.However,there was a slight hitch in selling the CIDCO flats.
For example,a flat in E type apartments (3 bhk @ 1000 sq ft carpet area) which was purchased at Rs 30,000 in 1973 started fetching a price of Rs 3,00,000 in 1980,which meant that 1.5 lakhs would have to be paid to CIDCO as profit share in case the flat owner wanted to sell the flat.
CIDCO has sold flats based on a strict condition that before selling the CIDCO flats,owners will have to take permission from CIDCO and they will have to share 50% of the profit from sale with CIDCO.
This gave rise to various tactics to evade these additional charges.
Most people started selling their flat on POA (Power of Attroney),thereby depriving CIDCO and the State of massive funds.
This POA later gave rise to various other issues, due to which owners couldn’t sell their flats,couldn’t become society members,couldn’t obtain loans etc.
In 2011,the Govt announced an amnesty scheme wherein the defaulters could pay the set fees and penalty as a one time charge to regularize their flats in these buildings…however this was applicable only to flats purchased before June 2009 and the whereabouts of the seller (original owner) was not known (traceable)