MCHI urges state government to make operational ‘additional 0.33 FSI on premium’ scheme

Mumbai, Feb 15, 2011: Maharashtra Chamber of Housing Industry (MCHI) today urged the state government to make operational the amended provisions of Maharashtra Regional and Town Planning Act (MRTP) in order to offer an additional 0.33 FSI on premium to developers.

The MCHI President Mr Sunil Mantri has requested for a personal hearing to the MCHI before the Maharashtra Chief Minister Prithiviraj Chavan in the presence of BMC Commissioner and Secretary Urban Development to resolve this long pending issue

In a letter addressed to the state Chief Minister Prithviraj Chavan, and to Chief Secretary Ratnakar Gaikwad, MCHI President Mr. Sunil Mantri has pointed out that neither any step is taken to permit 0.33 FSI nor any direction given to the Municipal Corporation to grant occupation certificate where the developers have purchased this FSI from the Government and constructed buildings thereafter. This has caused tremendous hardship and frustrates the intention to curb the rising prices of Transfer of Development Rights (TDR) in the hands of a cartel. This is despite the ordinance issued by the Governor of Maharashtra in September 2010, amending section 22 of Maharashtra Regional and Town Planning Act 1966, he said.

The MCHI President also cited the opinion of Senior Counsel K K Singhvi suggesting that the government can go ahead on 0.33 FSI scheme without inviting objections and suggestions to amend Development Control (D. C.) Regulations.

Mr Singhvi in his opinion to MCHI stated, “After the issuance of the ordinance dated September 21, 2010, State Government or the Planning Authority can levy premium for grant 0.33 FSI.” Citing the opinion of Mr. Singhvi, Mr. Mantri, in his letter elaborates, that it follows the provisions of section 37 (1) and (2) since the Act has been amended retrospectively and all charges, fees, premium levied under any rules or regulations made under the Principle Act, prior to the date of commencement of the said ordinance made under section 22, as amended by the notification dated October 3, 2008, has also been identified with retrospect effect.

Recalling the necessity felt by the state government for amendments in the MRTP act and subsequent notification on the 0.33 FSI issue, the MCHI President stated that the State Government carried out necessary notifications in order to sanction the modification to the Regulation 32 of the D C Regulations for Maharashtra 1991 in order to tame the soaring prices of TDR that have affected real estate development adversely.

MCGM and State Govt are losing Rs.10 Cr. per day due to non implementation of this scheme, and therefore Mr. Mantri has requested the Chief Minister to call an urgent meeting of the Principal Secretary, Urban Development, Municipal Commissioner and MCHI delegation to resolve the issue.

Mr. Mantri further stated that it will also help to bring down the prices of TDR in Mumbai region. Our suggestion is that the whole policy be made applicable to entire Maharashtra so that all Municipal Corporations will benefit out of the premium collected for TDR, Mr Mantri said.





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