Chavan, BMC chief defend Mumbai realty sector reforms

In spite of strong opposition from the real estate sector and a growing isolation in the ruling Congress party, Maharashtra Chief Minister Prithviraj Chavan has clarified that he would continue to pursue reforms in the Mumbai realty sector to bring in sanity and transparency.

Realtors and some Congress party members have been critical of the state government’s recent notification to amend the Development Control Rules for Greater Mumbai for charging additional premium on construction of certain areas in a building.

The premium would be charged for residential, industrial and commercial buildings at 100 per cent, 125 per cent and 200 per cent respectively, of the rate of developed land on the basis of the stamp duty ready reckoner rates. The compensatory floor space index is proposed to be fungible to give flexibility to the architect for designing the buildings, thereby achieving the dual purpose of functionality coupled with architectural features and to obviate the need for policing by the BMC staff for violation.

Chavan countered the realtors’ and experts’ argument that these changes would lead to an increase in prices. “An exercise was also done to work out the reasonable areas required to be permitted for various features and to prescribe a proportionate FSI so as to bring uniformity and prevent such misuse, by charging premium for granting compensatory FSI. The powers were often misused during interpretation of DCR and building proposals,” he told Business Standard. Similarly, BMC chief Subodh Kumar has claimed that the amendments to the Development Control Rules would bring in uniformity, transparency and a level playing field for developers and architects.

According to the government notification, the BMC can charge a premium of 100 per cent of ready reckoner rates on construction of terraces, balconies, flower bed, eco deck and ornamental features and architectural projections which were earlier sold by the developers at market rates though free of floor space index (FSI). Ready reckoner rates means the rate at which the government calculates the market value of the property. The proposal is expected to help BMC to earn extra revenues in the form of additional premium.

As per the amendments, the D.C.Regulation 35(2) has been divided into 35 (2) and 35(3), with additional provision by way of D.C.Regulation 35(4) for compensatory FSI by charging premium. Provision of number of basements/ podiums is expected to meet the additional need for parking, at the same time curtailing the tendency of providing excessive parking/ deck parking. There would be rationalization of criteria for open space requirements for fire fighting of high rise buildings & concept and the height of floor in some users.

Kumar observed that It is observed that in number of cases, on account of lack of clarity and specific guidelines, there were serious misuses of certain regulations in respect of elevational/ ornamental features such as niches, ducts, voids and other features such as lily ponds, deck parking, refuge areas which were granted free of FSI without premium. In some cases, parking alone was equivalent to the flat area, which was eminently misusable. Likewise in some cases 300 to 400 sq ft per flat was sanctioned in the name of lily pond with deck area. In some cases, projections more than 1.2 mt were sought and sanctioned with creative nomenclature, such as eco-friendly deck, part/ pocket terraces, sit out areas. This tendency was required to be curbed.

Yomesh Rao, director YMS Consultants Ltd "The notification is a boon for practicing professionals and will make the process of approvals speedy and time bound and it will require less discretionary powers. This will result in faster development. The uniformity in the approvals granted to all will bring the stability in prices of housing but also of land very shortly. Societies and tenant associations will be empowered to redevelop their own premises and societies due to these uniform rules as developers will not be able to give anything extra to them." He informed that the modifications have not altered the discretionary powers held by the municipal commissioner to change any dimensions and requirements as mentioned in the rules which do not involve FSI. Stair cases, lifts and passages thereto would still be exempted from FSI by charging the same earlier 25% premium.