MCHI Hails BMC Relief On Redevelopment

Calls for rethinking on additional FSI premium as well. End Quote

(1888PressRelease) August 27, 2011 - MUMBAI: The Maharashtra Chamber of Housing Industry (MCHI), the representative body of the real estate industry, today welcomes the Brihanmumbai Municipal Corporation's decision not to charge premium as per the new DC rules to compensatory FSI in the redevelopment projects.

MCHI had earlier pointed out that applying the premiums as per the new Development Control Rules and restrictions on redevelopment projects in Mumbai will defeat the very purpose of the scheme and lead to immense social injustice.

BMC had planned to levy a 100% premium on some areas like flower bed, parking, balconies etc appeared to have been made under the wrong premise that the developers were indulging in commercial exploitation. MCHI's point of view was that the question of any premium did not arise as all houses to existing inhabitants are given free of cost under redevelopment scheme covering old buildings or slums.

Welcoming the pragmatic step by BMC Commissioner Mr Subodh Kumar, MCHI president Mr Paras Gundecha appealed to the Municipal Corporation and the government to have a serious rethinking on the move to levy a 100% premium on developers for compensatory FSI.

"This premium is too high. The State Government and the Municipal Corporation should take a pragmatic and rational view," he said that MCHI had already recommended a maximum of 25% premium on compensatory FSI and that this area should not be inclusive of the balconies which should continue to be as per earlier policy.

"Our earnest request to the authorities, therefore, is to rethink on the issue, and I am certain that we can find a favourable solution and thereby not burden the consumer. Mr. Gundecha further commented that parking is an ever growing requirement, and as such, the BMC and the Government should reward the developers that provide parking to take care of all this, otherwise there will b cars parked on the lanes & bylanes thereby choking the traffic.

MCHI strongly supports setting up of a dedicated City Infrastructure Fund, where all the collections from real estate developments, including the premium on .33 FSI should be used exclusively for up-gradation of infrastructure for Mumbai city." he said.

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