State issues ordinance to allow premium on FSI
Redevelopment proposals in the suburbs hoping to make use of the additional 0.33 FSI will have to wait longer to take off, though the state government has legalised charging of premium in exchange for granting additional vertical development rights.mumbai Updated: Oct 12, 2010 02:10 IST
Redevelopment proposals in the suburbs hoping to make use of the additional 0.33 FSI will have to wait longer to take off, though the state government has legalised charging of premium in exchange for granting additional vertical development rights.
The state government issued an amendment to the Maharashtra Regional Town Planning Act (MRTP) at the end of last month. It allows the state government and local bodies to charge “fees, premiums and charges for granting additional FSI or for the special permissions or for discretionary powers”.
The ordinance has retrospective effect from 1967, the day of commencement of the MRTP Act to validate all levies collected in the last four decades.
And, while this has cleared hundreds of pending building proposals awaiting BMC’s nod to exempt lobbies, staircases, lifts from total Floor Space Index, it has not restored FSI of suburbs to 1.33.
FSI is the ratio of the total permissible built-up area to the size of the plot it is built on.
“On the basis of this amendment we will have to again modify DC regulations to increase FSI in the suburbs. This process will take three to four months because it calls for seeking suggestions, objections,’’ said N R Shende, deputy secretary urban development department.
He added that DC rules would have to be modified since the high court had specifically quashed decision to hike FSI.
The government had decided to issue the ordinance after Bombay High Court stayed state decision to hike base line FSI in the suburbs from 1 to 1.33 in exchange of a premium. The Court had said that MRTP Act did not have any provision to charge premium.
The state, in 2008, had decided to charge premium for increasing FSI by 0.33. This had reduced the additional FSI to be bought from private parties for redevelopment and reined in the TDR prices.
Now, until the FSI is restored to 1.33, TDR cartel will continue to charge high prices leading to an artificial increase for redevelopment proposals.