The Maharashtra Chamber of Housing Industry has lauded the Brihanmumbai Municipal Corporation's (BMC) decision not to charge premium as per the new Development Control Rules to compensatory FSI (floor space index) in redevelopment projects.

BMC proposed to levy a 100 per cent premium on areas such as flowerbeds, parking and balconies stating that developers were charging home buyers for the space, which was exempt from FSI calculations.

MCHI had contended that the levy of a premium did not arise in redevelopment as all houses to existing inhabitants were given free under the redevelopment scheme covering old buildings or slums. The association had also said that the new DC rules and restrictions on redevelopment projects in Mumbai would defeat the very purpose of the scheme.

Mr Paras Gundecha, MCHI president, appealed to BMC and the government to also reconsider the move to levy the premium on developers for the compensatory FSI for other projects.

The premium is too high, he said, adding that MCHI had recommended a maximum of 25 per cent premium on the compensatory FSI.

‘PRAGMATIC MOVE'

The Confederation of Real Estate Developers' Association too welcomed the move.

Mr Lalit Kumar Jain, national president, said it was a practical and pragmatic step while calling for the Pune Municipal Corporation to follow suit.

Mr Jain said Pune was imposing restrictions on FSI for development.

The Pune Corporation had decided not to allow extra FSI for redevelopment projects.

Appealing to PMC is to reconsider its decision, he said, “We must learn lessons from the Mumbai experience."

Mumbai allows an FSI up to three for redevelopment projects and Pune should allow a minimum four instead of two, he said.

Under redevelopment schemes, developers construct and offer flats free to existing tenants/owners and sell the balance of residential space built with the extra FSI to recover their investment and margin.

Related Topics