BMC rolls out more concessions for builders ahead of assembly elections

In a circular issued by the development plan department of the BMC on Tuesday, it stated, “Instalment facility is proposed to be modified by reducing the rate of interest from 12% to 8.5% on reducing balance instalments.”

A month away from the Assembly elections, the Brihanmumbai Municipal Corporation (BMC) has rolled out further concessions to builders. The civic body on Tuesday approved concessions on interest rates in case payment of the premium amount by builders is done in instalments under development control regulations (DCR).

A month away from the Assembly elections, the Brihanmumbai Municipal Corporation (BMC) has rolled out further concessions to builders. (Representative Image/.HT file Photo)

The BMC has also reduced the interest rate for default payment of premiums by builders.

In a circular issued by the development plan department of the BMC on Tuesday, it stated, “Instalment facility is proposed to be modified by reducing the rate of interest from 12% to 8.5% on reducing balance instalments.”

The circular added, “Also, where there is a default in the payment of the instalment amount with interest, the interest on the differed payment is proposed to be reduced from 18% to 10% per annum for the first six months from the scheduled date; and thereafter, 12% for a further six months.”

Meanwhile, the state government had last month reduced the premium for additional FSI (floor-space index) to 40% of the ready reckoner rate, from the earlier 50%.

In the case of fungible (galleries and flowerbeds) FSI, the premium was dropped to 35% of the ready reckoner rate, from 50% for residential buildings; and to 40% from 60% for commercial structures.