Published On: Tue, Feb 6th, 2018

SRA sanctions deferment in payment of premium for fungible FSI

fsiBy Accommodation Times Bureau

MUMBAI

The Slum Rehabilitation Authority (SRA) has decided to sanction deferment in payment of premium for fungible Floor Space Index (FSI) under Regulation No. 35(4).

Confederation Real Estate Developers’ Association of India (CREDAI) had urged SRA Chief Executive Officer Deepak Kapoor to extend the similar facility for SRA scheme, a circular said.

According to the provisions of Regulation No. 35(4) of sanctioned Development Control Regulation of Greater Mumbai, Fungible compensatory Floor Space Index, not exceeding 35% for Residential and 20% for Industrial / Commercial Development, over and above admissible Floor Space Index, is permissible by charging premium @ 60%, 80% and 100% of stamp duty Ready Reckoner Rate, for Residential, Industrial and commercial development respectively.

The CREDAI vide their letter has represented to extend the similar facility of deferment in fungible premium payable in respect of SR schemes. In light of the aforesaid circumstances and after- careful consideration, the Chief Executive Officer of the Authority has decided to sanction deferment in payment of premium for fungible FSI under Regulation No. 35(4) as shown below on following conditions.

A) For Buildings below or up to 70 Meters in height

Initial Payment At the end of Months with Interest
 12th   24th
1st Installment 2nd Installment 3rd Installment
 33%  33%  34%

B) For Buildings above 70 Meters in height

Initial Payment At the end of Months with Interest
 12th  24th  36th
 1st Installment 2nd Installment 3rd Installment  4th Installment
 25%  25%  25%  25%

1. If the developer fails to pay the fungible premium within 30 days from the date of demand, interest @ 18% shall be levied for a period up to 3 months from the date unless he applies for deferment of the same. If the developer fails to pay the dues within 3 months with interest, his application that led to the generation of demand shall be deemed to have been rejected.

2. Minimum amount to be deferred shall be more than Rs.5 Lakhs.

3. The developer shall deposit 10 Installment of 25 % / 33%, of the amount to be deferred within 30 days of demand having been raised, before sanction of CC / Further CC.

4. Interest C.ff). 12% p.a. quarterly compounding shall be levied from the end of 30 days from the date of issue of demand note by SRA on balance instalments, for which postdated cheques shall be submitted at the time of sanction. If the calendar year changes during the period of deferment, at the time of realization of deferred amount, new demand calculation as per new SDRR or old deferred demand along with interest @ 12% p.a. quarterly compounding, whichever is higher shall be recovered.

5. If the developer fails to deposit the amount deferred on a due date, interest at 18% p.a. quarterly compounding shall be recovered on the defaulted amount from the date of default.

6. If deferment for fungible premium is sought for an amount less than of Rs. one crore, deferment shall be sanctioned at Secretary, SRA’s level. For the demand of more than Rs. One crore, deferment shall be only upon sanction of C.E.O.

7. If there is any default on the part of the developers availing the deferment facility, the sale component of the scheme would be forcefully stopped by the SRA and no further technical permissions would be granted to the developers from SRA and any other statutory authorities.

8. Notwithstanding anything mentioned above, CC equivalent to 15% of an approved built-up area of sale component or CC of the built up area of entire one floor (If the part terrace is proposed at topmost floor, then the topmost floor and entire one
floor below top most floor) whichever is higher shall be restricted. Engineering Department is directed to ensure the same.

9. The total recovery of payment for balance amount with interest due shall be confirmed by Executive Engineer before releasing 15% CC or CC of one or more floor as the case may be. The CC thus restricted, shall be released forthwith on receipt of all the installment of fungible premium with interest which should be confirmed by the finance department.

10. The Finance department is hereby directed to ensure that the 1/3rd amount of fungible premium received along with interest thereon is deposited into the proper head of the State Government and 2/3rd amount is remitted to MCGM by the 15th day of next month.

This circular shall come into effect from the date of issue.

 

 

 

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