After citizen groups and planners, property developers have voiced concerns over provisions in Mumbai’s development plan (DP), saying they will make houses more expensive and derail redevelopment projects.
The Property Redevelopers Association (PRA) on Thursday said the DP will make the redevelopment of cessed properties – those built before 1960 – economically unviable.
In a press conference, Punit Aggarwal, PRA’s spokesperson and general secretary, slammed the provision of replacing FSI incentives with transfer of development rights (TDR) for redevelopment projects. “This will severely hit redevelopment, as the new provisions will make the viability of such projects as good as zero,” he said. The DP lacks clarity on how the TDR will be awarded, which will cause confusion, said Aggarwal.
He claimed the exorbitant premium the civic body proposes to charge for additional FSI will increase production costs exponentially, leading to a sharp hike in property prices. “Houses will become unaffordable, for the common man and even the rich.”
At present, the rule of 6m open space on two sides and 1.5m open space on the other two sides of a building is not binding while redeveloping chawls in the island city, built very close to each other. However, the DP seeks to enforce it, and the association claims it is unfair, as it is equating building projects with redevelopment.
Aggarwal criticised the ever-changing laws in relation to Development Control Regulation 33(7) —which governs the redevelopment projects- saying the changes cause uncertainty and discrepancy.