Govt is losing out on FSI revenue: BJP | india | Hindustan Times
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Govt is losing out on FSI revenue: BJP

india Updated: Jun 16, 2009 02:27 IST
Zeeshan Shaikh

The Bharatiya Janata Party (BJP) on Monday alleged that the money that the government could have got to fund the city’s growth is not coming into the state coffers due to the government’s apathy.

Last year, the state government during the budget session had passed an order increasing the Floor Space Index (FSI) by .33. The cap of FSI in the city and the suburbs was to be limited to 2.

The additional 0.33 FSI could be availed by paying a premium, which was to be equally shared between the state government and the BMC.

An FSI is an indicator of how high a developer can build on a plot. After the order, the state government and the BMC had collected Rs 250 crore each.

After about two months, the high court ordered a stay on the new rule. The stay was granted as the government had not followed the proper guidelines. The government again passed the same order under Section 37 (2) of the Maharashtra Region Town Planning Act by following the legal procedure.

“The government, by not moving the Supreme Court to lift the stay, is losing out on revenue. This had been done to aid the builders’ lobby,” said BJP Mumbai president Gopal Shetty.

He alleged that the builder’s lobby controlling Transferred Development Rights (TDR) certificates was jeopardising the development.

TDR is an additional built-up rights granted in lieu of the area given for public projects and amenities. Due to 0.33 FSI, TDR prices had come down to Rs 900-Rs 1,000 from the earlier Rs 4,000.

Urban Development Secretary T C Benjamin said: “The state has not proceeded because of the court’s stay order. We will look into the matter.”