Not handing over houses? BMC won’t give builder TDR for projectUpdated: Dec 18, 2019 23:46 IST
The Brihanmumbai Municipal Corporation (BMC) has decided not to approve Transfer of Development Rights (TDR) to developers for a project, unless they hand over the nearly 1,000 housing units reserved for project-affected people (PAP) in it.
TDR, the right to build on a plot, is transferable. Every land parcel has a cap on the area that can be constructed, which is calculated based on the size of the plot, also known as Floor Space Index (FSI). In certain cases, developers procure TDR from the market to carry out construction to the full capacity of the plots.Certain plots have reservation for PAP units. Developers get incentives for giving tenements for PAP to the civic body for free.
While the real estate sector is reeling under a slowdown, the decision will come as a blow to builders, as TDR is expensive and is generated mainly
from slum rehabilitation projects.
Municipal commissioner Praveen Pardeshi told HT, “PAP units are essential for supporting several upcoming infrastructure projects in the city. Those delaying handing over possession of housing units will not be permitted TDR to be used for that particular scheme or realty project. In cases where it is found that the delay is deliberate, the developer will not be permitted TDR for any other project too.”
Vilas Nagalkar, city-based architect, said, “The decision on TDR will no doubt impact the projects reeling under a slowdown. This will however help BMC get PAP units quicker. Also, the new development rules ease out a lot of complications and it is expected that such delays will not continue anymore.”
According to BMC estimates, it requires 36,000 PAP housing units for various projects.
A senior civic official said, “We are holding meetings with the developers concerned to understand the problem.”