The Brihanmumbai Municipal Corporation (BMC) is likely to impose the offered hike on floor space index (FSI) for premium in the suburban areas of Mumbai in forthcoming 6months, Subodh Kumar Municipal Commissioner has given the assurance to realtors on Thursday.
Governmetn of Maharashtra has amended Maharashtra Regional and Town Planning Act 1966 in December and which offers the additional FSI for projects in the suburban areas of Mumbai. Whereas, yet there is no action has been taken place for this.
The allotment of additional FSI for premium will increase the supply of lower budget developers and on the other hand decrease the prices of transferable development rights (TDR). Civic authorities has issued the TDR to developers as a bonus for accepting projects such as slum rehabilitation or surrendering developmental rights of any heritage structure. In the current scenario property developers in suburban areas are getting FSI of 1 with the cap of 2 for total development.
In Oct 2008 Government of Maharashtra had increased the FSI to 1.33 for suburban areas of Mumbai. Despite the state governments decision High Court has said that under the MRTP Act 1966, the government cannot charge premium for sale of FSI.
Subodh Kumar assured builders that the civic authority will complete its proposed modifications in construction-related policies within six months.
“We are looking at rules that are more transparent and less discretionary, but that does not mean the projects will be held up. We are looking at how to make these policies non-manipulative,” he said at the inauguration of a property exhibition organised by the Maharashtra Chamber of Housing Industry.
On Thursday Municipal Commissioner Subodh Kumar has given the 6months time frame to complete the offered alterations in construction-related policies. While addressing to media in exhibition of Maharashtra Chamber of Housing Industry he said that “We are looking at rules that are more transparent and less discretionary, but that does not mean the projects will be held up. We are looking at how to make these policies non-manipulative.”