Civic body has collected Rs 250 crore in 2009-10 as premium The Pune Municipal Corporation (PMC) will soon have to account for revenue earned as premium for allotting extra floor space index (FSI) under a separate head. The state government will soon direct all municipal corporations to use this revenue for infrastructure development only. The PMC has collected almost Rs 250 crore as FSI premium for 2009-10. No more foreign pleasure trips or usage of premium revenue generated as common fund. This will be part of a separate fund and the corporation will have to account it only for development purpose, principal secretary,Urban Development Department (UDD) TC Benjamin,told The Indian Express. This follows the state cabinet decision to amend the Maharashtra Regional Town Planning (MRTP) Act on Wednesday. The decision was to amend section 22 (d) of the Act with retrospective effect,to help the government regularise decisions taken since the provision came into effect in 1991. The amendment allows civic bodies to continue charging a premium for additional FSI. The Bombay HC had raised questions over charging premium after some builders challenged it. The court had quashed the government notification stating there was no provision in the Act for it. The court asked the state to either make a suitable amendment or approach the higher court. The cabinet decided to amend the Act,so that municipal corporations continue to allocate FSI against a premium. Making corporations account for the premium,which is a good source of income for corporations,will also see municipal bodies using funds effectively towards infrastructure work in the city, said Benjamin. Additional FSI is granted to builders for schools,colleges,hospitals and religious places while residential projects get it for lifts,staircases and lobbies. According to UDD department data,the state had collected nearly Rs 2,000 crore as premium for 2009-10 of which Mumbai alone yielded Rs 1,100 crore. A PMC official said the Rs 250 crore the civic body collected in 2009-10 will be a separate fund now. Builders bodies feel civic bodies should rationalise premium charges. Corporations charge any percentage over the ready reckoner. Some regulation in this would be welcome, said CREDAI,Pune,chief Satish Magar.
