Dharavi TDR: Developers seek higher FSI, relaxation in premiums

MUMBAI CREDAI-MCHI, leading developers’ body representing 1,800 developers in MMR, has sought higher FSI and relaxation in premiums if developers are compelled to buy Transferable Development Rights (TDR) generated from Dharavi Redevelopment Project (DRP), which is being implemented by the Adani Group

MUMBAI

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CREDAI-MCHI, leading developers’ body representing 1,800 developers in MMR, has sought higher FSI and relaxation in premiums if developers are compelled to buy Transferable Development Rights (TDR) generated from Dharavi Redevelopment Project (DRP), which is being implemented by the Adani Group.

CREDAI-MCHI made the demands while responding to the suggestions and objections invited from stakeholders by the Urban Development department, to its controversial November 7 notification which made it mandatory for MMR developers to purchase first 40% of their required TDR from the Dharavi TDR.

In a letter addressed to the deputy director (Town Planning), CREDAI-MCHI has suggested that if they have to buy Dharavi TDR as mandated, the developers should be allowed to use FSI up to 3.0 for plots abutting 12 metre wide roads, and up to FSI 4.0 for plots abutting 18 metre wide roads. The current FSI for plots next to 18 metre roads is 3.0.

The body has also sought relaxation in premiums by demanding that open space deficiency created due to utilisation of Dharavi TDR be condoned by the state by charging premiums at 2.5% of the land rate as per Ready Reckoner (RR) rates instead of the current 8%.

“It will be feasible for prospective buyers to purchase Dharavi TDR, if its utilisation increases the permissible FSI on their plot. Such an increase in permissible FSI was allowed for slum TDR when it was first introduced in 1997. This provision is required since Dharavi TDR is majorly from rehabilitation of slums and hence will have the same usage benefits as that available for slum TDR,” the letter said.

CREDAI-MCHI also demanded exemption from premium for fungible FSI and open space deficiency for rehab and sale buildings and exemption from BMC’s permission for relocating reservations with DRP area. It also sought exemptions from infrastructure charges and development cess, from scrutiny fees and staircase premium notified in 2018 and 2022 GRs.

“It is mandatory for developers to purchase 20% of their TDR requirement from the slum TDR. Developers purchase the required TDR at 30% of RR rates, but as per the notification, it has to be purchased from Dharavi TDR at 90% of RR rate. This will increase the cost for the developer. So at least then allow higher FSI to the developer on his plot ,” said an industry source explaining the rationale for the demand.

Pointing out deputy chief minister Devendra Fadnavis’s recent statement that he would like the housing stock to grow,. the source said it was therefore ironical, as the mandated provisions will make it more expensive for developers to create housing stock. “How will affordable housing be created if it is going to increase the cost to the developers. The developers will eventually pass this on to the home buyers. In that case, at least allow the developer higher FSI and relaxation in premiums,” the industry source said.

Rationalisation of high premium is one of the key demands of MMR developers. In September, CREDAI-MCHI had submitted a representation demanding rationalisation of premiums by 50% and reduction in the number of premiums charged to the developers from 36 to 6. Based on a comparative study between real estate values of Mumbai, Delhi-NCR, Bengaluru and Hyderabad, the representation had pointed out that Mumbai’s real estate was the costliest due to the high premium regime compared to the other cities.