Will not scrap Mhada’s flat-sharing formula: CM | mumbai | Hindustan Times
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Will not scrap Mhada’s flat-sharing formula: CM

mumbai Updated: Jul 18, 2012 00:28 IST
HT Correspondent
HT Correspondent
Hindustan Times
Will not scrap Mhada’s flat-sharing formula: CM

Builders who redevelop old Mhada buildings and want extra floor space index (FSI) will have to share housing stock with the government, chief minister Prithviraj Chavan said on Tuesday.

Chavan was responding to demands by legislators from the Opposition as well as from Congress and NCP to scrap the flat-sharing formula and allow builders to acquire extra FSI by paying a premium.

Chavan said that the state government amended the redevelopment scheme in 2010. In addition to premium payment, builders were given an option of sharing flats for free with the Maharashtra Housing and Area Development Authority (Mhada) in exchange for extra FSI, he said.

“However, very few builders have opted for the flat sharing scheme because it is not profitable for them. We have rejected 265 premium-for-FSI proposals because we want flats from builders so that they can be given to needy persons through lottery. We don't want money because Mhada does not have land to build houses,” Chavan said.

Chavan disclosed that 17 proposals for sharing of flats were cleared, while 36 were being scrutinised. Under the scheme, for every two flats given to Mhada, the builder can sell one in the open market.

Though the CM assured that he would hold a meeting of local legislators to thrash out a solution, he clarified that the state will not compromise on the flat sharing formula.