The Brihanmumbai Municipal Corporation (BMC) commissioner Subodh kumar has proposed to charge 100 percent premium on realtors who wants extra permissible floor space index (FSI) and will mop up approx Rs. 3000cr per year by charging heavy premium.
Municipal commissioner has said to Chief Minister the proposed norms are for the construction industry. Kumar explained that “developers will be charged 100 percent premium if they required 25% extra FSI more than the approved for residential projects.”
Similarly, when it comes to commercial projects the BMC will permit 15percent extra built-up area whereas it will charge the same heavy premium to it. These additional areas include flower beds, lily ponds, voids, staircases, balconies, car decks and terraces, which at present are not counted in the FSI.
On the other hand developers sell all theses space to the homebuyers illegitimately and surge them to mix-up into their living area.
In the aftermath of this municipal commissioner’s proposal builders have said that by charging 100percent premium will cause to property prices it may go up by approx 30% to 40%. However, senior civic sources debunked the claim, saying there was no correlation between the proposed premium and property prices.