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Sunday, October 25, 2020

Sena, BJP write to BMC chief, seek details on revenue deficit if builders given relaxation on premiums

The urban development department has recently sent a proposal to the BMC, according to which, 50 per cent reductions in various premiums and charges have been proposed for builders.

By: Express News Service | Mumbai | Updated: September 19, 2020 10:57:12 am
BMC, BMC Commissioner iqbal singh chahal, mumbai covid-19, bmc fund deficit, bmc revenue deficit, bmc revenue deficit properties, mumbai city newsBMC Commissioner Iqbal Singh Chahal. (File)

Seeking clarity on the impact of reducing premiums and charges levied on developers on BMC’s finances, Shiv Sena and BJP have written to Municipal Commissioner Iqbal Singh Chahal for details on how much revenue shortfall the move is likely to cause and what the civic body plans to do to about it.

The urban development department has recently sent a proposal to the BMC, according to which, 50 per cent reductions in various premiums and charges have been proposed for builders.

The proposal is part of suggestions made by the Deepak Parekh Committee on the revival of real estate sector amid the Covid-19 pandemic.

The Sena-controlled BMC is yet to reply to the department.

Shiv Sena leader Yashwant Jadhav, who on September 14 had written to Chahal, said that while the move would lead to the revival of the real estate sector, he wanted clarity on the impact it would have on the BMC. “The premiums are one of the biggest revenue sources for the BMC. The civic body is also facing losses due to Covid-19. The BMC administration should give us details how much revenue loss will it face due to the move,” he added.

“Also, BMC should ask the developers to pay a premium while issuing a final commencement certificate (for a project) instead of asking for the same at the time of handing over an occupation certificate,” said Jadhav.

He further said, “If relief is indeed given, it should be for one and two BHK flats. Houses that cost over Rs 3 crore should not be considered for this relief, as they are luxury housing. The move should be used to benefit affordable housing.”

Last month, BMC had reduced expenditure worth Rs 2,500 crore after facing a revenue loss of over Rs 4,000 crore.

BJP leader Prabhakar Shinde, who has also written to Chahal on the issue on September 16, said: “The BMC should tell us how much revenue it gets from premiums and what will be the impact? We also want to know if home buyers will benefit from this move and till when the concession will remain in effect.”

According to the Parekh panel’s findings, developers have to pay 22 premium or charges in Mumbai – the highest compared to any other metro city. In its recommendations, it had suggested reducing all premiums for staircases, lift well and lobbies among others by 50 per cent under the development control and promotion regulations.

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