50% premiums cut for cluster development till June 2024: BMC

CREDAI-MCHI had made a representation to the BMC on October 11 seeking clarification whether instalment facility for schemes which availed 50% reduction in premiums or before June 14, 2023 will continue.

Mumbai: In a relief to Mumbai developers, the Brihanmumbai Municipal Corporation has said that 50% concession in premiums for cluster development projects under Regulation 33 (9) is applicable to premiums actually paid between June 15, 2023 and June 14, 2024 and will remain applicable to those projects where instalment facility has already been availed of.

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“Any payment of instalment of premium actually paid between 15.06.2023 to 14.06.2024 partly/fully is to be recovered with 50% concession. The balance payment, if any, after 14.06.2024 shall be recovered at non-concessional rate i.e. I00% premium as per earlier applicable instalment policy circular(s),” said BMC Chief Engineer (Development Plan) in a letter to CREDAI MCHI President Domnic Romell.

Leading developers’ body CREDAI-MCHI had made a representation to the BMC on October 11 seeking clarification whether instalment facility for schemes which availed 50% reduction in premiums or before June 14, 2023 will continue.

Rathod’s letter dated December 8 said the instalment facility will be applicable only to premium payments as per prevailing instalment policy. It further said this facility will not be applicable for proposal under Regulation 33 (9) for premiums towards condonation of parking, condonation of width of staircase, condonation of Artificial Ventilation Shaft, and premium towards not providing amenity among others.

Earlier, the Urban Development department had issued a circular dated June 14, 2023 to reduce premium on development cess and Fungible FSI and issued guidelines to the BMC to allow the same in their premium policy approved by the Municipal Commissioner on September 14, 2023.