State clears rule for 100% premium on additional FSI
The state government on Monday cleared a notification that calls for charging 100% premium on the additional 25% Floor Space Index (FSI) that developers are allowed to use in a residential project plan in Mumbai.mumbai Updated: Jul 26, 2011 00:53 IST
The state government on Monday cleared a notification that calls for charging 100% premium on the additional 25% Floor Space Index (FSI) that developers are allowed to use in a residential project plan in Mumbai.
This means builders will have to pay separately for areas like car parking, stairs, lobby areas, swimming pools, open terraces which used to be free of charge before, and would be amalgamated into living areas.
FSI is the ratio of permissible built-up area allowed vis-a-vis the size of the plot.
Currently, builders are known to sell flats with added facilities like an open terrace or a huge flower bed area added to a living room. While the builder charged the buyer for it, they did not pay anything for the same.
The notification, which according to a senior government official, was signed by chief minister Prithviraj Chavan on Monday aims at bringing in transparency and bringing in a legalised system in place.
While the premium charged on residential projects has been fixed at 100%, the premium for industrial areas will be charged at 125% while that for commercial projects will be fixed at 150%.
According to sources in the urban development department, this move will help the Brihanmumbai Municipal Corporation (BMC) rake in around Rs 2,500 crore annually by levying a hefty premium on project areas that are beyond the permissible FSI. This money, the state government sources say, will be used for infrastructure development of the city.