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This is an archive article published on May 28, 2016

Revised draft DP: Move that favoured developers who exceeded FSI limits dropped

Civic body stood to lose crores in revenue due to dole.

The Mumbai municipality has decided to reverse a controversial move that favoured developers who built areas like flower beds, terraces, balconies, voids, and parking decks in excess of what is permitted.

On Friday, The Indian Express had revealed that the city’s revised Development Plan brings a bonanza for such developers by permitting them to build such extra areas without paying a premium. While luxury towers coming up in upscale localities such as Worli, Lower Parel, Breach Candy, Currey Road, and Nepeansea Road would have benefitted from the dole, the civic exchequer would have lost crores as potential revenue.

The civic body has now dropped the controversial clause from the revised draft, implying that the dole stands withdrawn for now.

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The Indian Express had on Friday reported that a section of town planners in the BMC had sought dropping of the provision, and argued that the BMC could invite flak for favouring some builders.

The developers had been lobbying hard with the state and the civic administration for a reprieve on the grounds that the initial building permissions or IOD for building such extra areas were sanctioned before the premium rule was introduced on January 6, 2012.

Sources, however, said the rule made it clear that the developers who had already received IODs prior to January 6, 2012, were exempted from premium payments for already sanctioned portions of the building, but would come under the premium regime when they seek subsequent permissions for higher floors.

The state UDD headed by the CM had earlier permitted the exemption last May, but was forced to clarify later that the civic chief would hold the discretion to charge full premium. But since the UDD did not alter the original modification, the civic body had kept its implementation in abeyance. “This stay will continue,” said a senior official.

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