Real Estate

Realtors in Gujarat oppose 40% premium for additional FSI

Our Bureau Ahmedabad | Updated on January 18, 2018 Published on July 29, 2016

Affordable houses in Gujarat could be cheaper by at least 15-20 per cent, if the Gujarat Government removes the exorbitant charges on the additional floor space index (FSI), maintained top real estate body Gujarat Institute of Housing and Estate Developers (GIHED). 

At a media interaction in Ahmedabad, GIHED president Dipak Patel claimed that only recently, the urban development authorities have started charging 40 per cent premium over and above the jantri (ready reckoner) rates. “About 3 years ago, the same used to be a token amount of Rs 1,000-1,500 per square meters for residential and commercial properties on FSI over and above the permissible," he said. 

To address the issue, the realtors' body will take a legal course by approaching the Gujarat High Court on the matter. "We had already filed an RTI, but it did not receive any response from the concerned authorities such as Ahmedabad Urban Development Authority (AUDA)," said Patel. 

“We seek to know under which clause of the Town Planning and Urban Development Act 1976 the Government charges the 40 per cent premium over jantri rates for additional FSI and also seeking a rollback of the same," he added.

This cost is passed on to buyers, as a result, the cost of residential or commercial properties rise by at least 15-20 per cent due to the 40 per cent premium on additional FSI. 

Published on July 29, 2016
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