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This is an archive article published on September 28, 2012

State denies use of two rules for hotel redevelopment

The state urban development department on Thursday told the Bombay High Court that the redevelopment of a luxury hotel in Bandra,Hotel Sea Rock,is governed solely by the more liberal development control regulations of 1967 and not the stricter DCR of 1991.

The state urban development department (UDD) on Thursday told the Bombay High Court that the redevelopment of a luxury hotel in Bandra,Hotel Sea Rock,is governed solely by the more liberal development control regulations (DCR) of 1967 and not the stricter DCR of 1991.

The claim,made in an affidavit placed before the court on Thursday,was in response to an allegation of a public interest litigant that two sets of development control regulations were used for the same project,which is impermissible by law.

The petitioner – Lawyer Sonia Raj Sood – alleges irregularities pertaining to Coastal Regulation Zone and Floor Space Index (FSI) regulations in the redevelopment of Hotel Sea Rock.

Sood contends in the PIL that former Chief Minister Ashok Chavan used his discretionary power to allow a total FSI for the project till 5.5,while the permissible limit for the project set by the Union Ministry of Environment and Forests (MoEF) was 2.49.

She also raises the issue of alleged evasion of premium on stamp duty by the hotel to the tune of Rs 12,000 crore when shares of the hotel changed hands on several occasions.

While the UDD claims the redevelopment is governed by DCR 1967,Sood points to a letter dated July 20,2009 written by the state government to the municipal commissioner. “The letter refers to Section 33 (4),which is present only in DCR 1991,even as it grants FSI under DCR 1967. Through this,the developer of the project is trying to avail of the convenient sections of both regulations,” she says.

The Section 33 (4) deals with permission for extra FSI for “starred category residential hotels”,with the permission of the government and on payment of a certain fixed premium.

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The petitioner also points to a letter written by the MoEF to the BMC commissioner in November 2010,in which the ministry had questioned how FSI up to 5.5 was granted. The case has now been kept for hearing on October 22.

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