BMC seeks UDD nod for reissuing IODs for projects from 2021 premium scheme

Citing representations made by architects’ body PEATA and BJP MP Gopal Shetty, the letter written by S H Rathod, chief engineer (development plan) sought the UDD’s concurrence for reissuing such IODs for projects in which there is no material change in approvals and no additional concessions are required.

MUMBAI: In a development that could provide relief to several developers who applied for the 50 percent premium concession scheme but whose Intimation of Disapproval (IOD) had lapsed, the BMC on Monday wrote to the urban development department (UDD) seeking its approval for revalidating such lapsed IODs and continuing the concession till December 31, 2023.

Mumbai, India - July 25, 2022: Palasi Royal building under construction at Worli, in Mumbai, India, on Monday, July 25, 2022. (Photo by Anshuman Poyrekar/ Hindustan Times) (Anshuman Poyrekar/HT PHOTO)

Citing representations made by architects’ body PEATA and BJP MP Gopal Shetty, the letter written by S H Rathod, chief engineer (development plan) sought the UDD’s concurrence for reissuing such IODs for projects in which there is no material change in approvals and no additional concessions are required.

During the Covid pandemic lockdown, construction work in the city had come to a standstill. To help recovery of the sector, the state government in January 2021 had given 50 percent concession on different premiums, including premium FSI, premiums for staircase, lift, lift lobby and so on up to December 31, 2022.

Several housing societies had taken the benefit of this concession to make redevelopment viable. As per some regulations of the DCPR, some of the premiums were to be shared between the BMC, the state government, MSRDC and Dharavi Redevelopment Authority. Developers had made a beeline to get the benefit of the premium concession.

However, some developers, despite paying the premium concession amount, could not get the commencement certificate (CC) within the one-year validity period of the IOD, as they could not fulfill certain conditions of the IOD. In some redevelopment projects, there was a delay in getting various NOCs, or some members in the existing building were against the redevelopment and the existing buildings could not be vacated in time.

The BMC’s letter says that in some cases, the developers took the benefit and paid stamp duty on behalf of the home buyers but the IOD lapsed. If the IOD is not reissued, the prospective buyers will not get the benefit. “Also, in cases where the project proponents have taken a CC, they are eligible for premium concession benefit as per government directives. But it would be unfair to disqualify the project proponents who have not been able to fulfil some of the IOD conditions from premium concession benefit, even though they have paid premium as per government directions,” states the letter written with the municipal commissioner’s approval.

“In such cases, the BMC needs to reissue an IOD for projects which availed of the benefit of 50 percent premium concession wherein project proponent has already paid premiums as per government directives and where there is no change in the original approval and not involving additional concessions. However, this needs the concurrence of the government, since some premiums are also shared by the government and other authorities,” states the letter seeking the UDD’s concurrence.