The Brihanmumbai Municipal Corporation (BMC) has framed its new estate policy rationalising earlier norms to ensure an increase in its revenues and offering relief to leaseholders by slashing the transfer fee that they would have to pay after redevelopment.
Under the new policy, the lease rent applicable on the property will be calculated on the floor space index (FSI) available on the plot. Till date the lease rent was calculated on the basis on the area of the plot.
FSI refers to the ratio between the total built up area vis-a-vis the size of the plot on which it is built upon.
The civic body was charging Re 1 per sqm earlier. Now, the new policy has proposed that rent will be charged on the basis of the FSI used, which is 2.5 in the city.
The policy will be tabled before the civic improvements committee, which deals with the land matters, on Tuesday.
It is expected to increase the revenue of the civic body manifold.
The policy has proposed that 100% charges of the ready reckoner rate of the consumed area for residential, 200% for commercial and 125% for the industrial users.
The new policy will be applicable for leased plots in the city; majority of them are located in plush south Mumbai area.
Of total 4,176 plots, 1,247 are on perpetual lease while 2,148 plots are on 999 years lease. Remaining plots on varying leases — between 10 and 120 years.
The new policy would also be applicable for those plots which are transferred to another or tenants who want to redevelop the property. After implementing new policy, the lease will be renewed for either 30 or 99 years.
“The lease period remaining less than 30 years will be renewed for 30 years and which has period of over 30 years will go for 99 years again,” said Aseem Gupta, additional municipal commissioner.
Instead of the earlier 50% transfer fee, the new policy has proposed only 10% as transfer fee and this will give some relief to poor talents.
“Many times these deals happened in illegally to avoid hefty transfer fee. Now, the amount will come to BMC’s pocket,” said an official from estate department on the condition of anonymity.
“We have called a special meeting on July 4 to discuss the new policy,” said Bhalchandra Shirsat, chairman of the civic improvements committee.
The policy will be discussed and cleared in the improvements committee. It will then go for approval to the state government and then BMC will invite suggestion and objections from citizens.