Make additional 0.33 FSI on premium scheme operational: MCHI

Maharashtra Chamber of Housing Industry (MCHI) has urged the state government to make operational the amended provisions of the Maharashtra Regional and Town Planning Act (MRTP), in order to offer an additional 0.33 floor space index (FSI) on premium to developers. Since MCGM and state govt. are losing Rs. 10 crore per day, due to non implementation of this scheme, MCHI has requested a personal hearing before the Maharashtra chief minister Prithiviraj Chavan in the presence of BMC commissioner and secretary urban development, to resolve this long pending issue.
 
In a letter addressed to Chavan and to chief secretary Ratnakar Gaikwad, MCHI president Sunil Mantri cited that neither any step has been taken to permit 0.33 FSI, nor any direction given to the municipal corporation to grant occupation certificate, where developers have purchased this FSI from the government and constructed buildings. This has caused tremendous hardship and frustrated the intention to curb the rising prices of transfer of development rights (TDR). This is despite the ordinance issued by the governor of Maharashtra in September 2010, amending section 22 of the Maharashtra Regional and Town Planning Act, 1966, he said.
 
Mantri also cited the opinion of senior counsel K K Singhvi, suggesting that the government can go ahead on 0.33 FSI scheme, without inviting objections and suggestions to amend Development Control Regulations. “After the issuance of the ordinance dated September 21, 2010, state government or the Planning authority can levy premium for grant 0.33 FSI,” stated Singhvi in his opinion to MCHI.
 
Citing Singhvi’s opinion, the letter elaborates that it follows the provisions of section 37 (1) and (2), since the act has been amended retrospectively and all charges, fees, premium levied under any rules or regulations made under the principle act, prior to the date of commencement of the said ordinance made under section 22, as amended by the notification dated October 3, 2008, has also been identified with retrospect effect.
 
The state government had carried out necessary notifications in order to sanction the modification to the regulation 32 of the D C Regulations for Maharashtra, 1991, to tame the soaring prices of TDR that have affected real estate development adversely. “Our suggestion is that the whole policy be made applicable to entire Maharashtra, so that all municipal corporations will benefit from the premium collected for TDR,” Mantri says.

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