HC slams BMC for condoning open space deficiencies

MUMBAI: Condoning open space deficiencies in new constructions in the city by charging a premium is like selling open spaces, the Bombay high court told the Brihanmumbai

MUMBAI: Condoning open space deficiencies in new constructions in the city by charging a premium is like selling open spaces, the Bombay high court told the Brihanmumbai Municipal Corporation (BMC).

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“This is virtually sale of open spaces by the corporation,” said a division bench of Chief Justice Manjula Chellur and justice MS Sonak, while hearing a petition filed by a developer, challenging a hefty open space deficiency (OSD) premium demanded by the BMC. “By getting the open space deficiencies condoned, you are depriving the citizens of open spaces to which they are entitled,” the judges told the counsel for petitioner Rkhav Shah.

Shah approached the high court challenging a demand notice issued to him by the BMC on July 16, 2016, demanding sum of Rs2.80 crore as OSD premium for allowing him to utilise transferable development rights over and above the permissible floor space index (FSI) while redeveloping a small property at Vile Parle.

According to the petition, the BMC had granted approval to redevelop Vijay Villa, spread over 459 sqm, in August 2014. After the commencement certificate was issued, the developer constructed a plinth plus four floors. Thereafter, he purchased transferable development rights to the extent of 290 sqm to redevelop the villa further.

Shah contended that because the area of the plot was less, he had to pay an OSD premium of Rs9.88 lakh – at 10 % of the ready reckoner value of the plot, as demanded by the civic body. However, when he sought permission to use fungible FSI, an additional demand of Rs92.24 lakh – at 35 % of the ready reckoner value of the plot — was demanded towards premium.

The petition adds that when he submitted amended plans, incorporating the area purchased by him as TDR, the civic body raised a fresh demand of OSD premium – Rs2.88 crore at 100 % of the ready reckoner value of the plot.

The developer challenged this latest demand of OSD premium by the BMC, contending it was exorbitant and arbitrary and jeopardised his rights to develop the property. Terming the entire BMC policy of charging OSD premium as bad and illegal, the developer further contended there was no logic or ration basis in charging an OSD premium at different rates for different stages of development work, and sought an order restraining the BMC from enforcing the demand.