Incentives for Redevelopment for Society Buildings

By Legal Bureau

The Government of Maharashtra sanctioned the modification to the Development Control Regulations for Greater Mumbai-1991, under section of 37(1AA) (c) of MRTP-Act, vide Govt. Notification No. CMS-4311/452/CR-58/2011/UD-11 dt. 6th January 2012, granting certain encouraging incentives in respect to redevelopment of age old buildings owned by co-operative Housing Societies in the limits of Greater Mumbai (City and Suburban limits), to enable to make redevelopment proposal financially viable. The said incentives are described in brief for the benefit of Co-operative Housing Societies as under:-

1) Additional 0.33 F.S.I. in Suburbs and Extended suburbs :-
The Government of Maharashtra vide its Notification under No. 7PB-4308/776/CR-127/2008/UD-11 dated 24-10-2011 (making certain modifications in its earlier Notification dated 10-04-2008) sanctioned the modification proposal under section 37(2) of MRTP Act and thus the pending issue of granting additional 0.33 F.S.I. for Mumbai-Suburban areas, is finally cleared and now 0.33 additional F.S.I. (1.00 + 0.33) is permissible for the development in the Suburban and Extended Suburban areas of Greater Mumbai against payment of premium. The modified Notification and area wise premium applicable is already explained in Chapter No. 4 of this book for the benefit and knowledge of the consumer.

2) Fungible Compensatory F.S.I.:-
As per sanctioned modification to the Development Control Regulation for Gr. Mumbai-1991 vide Govt. Notification dt. 6th January 2012, Fungible Compensatory additional F.S.I. henceforth will be permitted over and above present admissible F.S.I. for all type of developments in the Greater Mumbai Limits with the special permission of the Municipal Commissioner subject to the terms and conditions mentioned therein against the payment of premiums. The sailent features of the said permissible incentive Fungible compensatory F.S.I. related to user/zone are described as under:-

a) Extent of Permissible Fungible Compensatory F.S.I.:-
Zone & Users Fungible F.S.I. permissible
i) Residential Development : 35% overadmissible F.S.I.
ii) Commercial Development : 20% over admissible F.S.I.
iii) Industrial Development : 20% over admissible F.S.I.

b) Computation of Admissible & Fungible Compensatory F.S.I.:-
In view of item No. (a)(i) to (iii) above following will be permissible F.S.I. for different development and users in City and Suburban limits of Gr. Mumbai :-

• City Limit :-
Admissible F.S.I. Fungible F.S.I. Total Permissible F.S.I.
i) Residential Zone
1.33 + 35% = 1.7955

ii) Industrial &
Commercial Zone
1.33 + 20% = 1.596

• Suburban Limits :-
i) Residential Zone
1.00 + 35% = 1.35

ii) Industrial &
Commercial Zone
1.00 + 20% = 1.20

c) Payment of Premium :-
The incentive Fungible Compensatory F.S.I. will be permitted by the Corporation against the payment of premium. The premium rates are directly linked to the property rates of different areas mentioned in Ready Reckoner for the purpose of Stamp Duty declared by the State Government from time to time. The said premium will be charged according to the percentage decided for different users is described as under:-

i) Residential Development : 60% of the Stamp Duty Ready
Reckoner Rate of the respective
Location.

ii) Industrial Development : 80% of the Stamp Duty Ready
Reckoner Rate of the respective
Location.

iii) Commercial Development : 100% of the Stamp Duty Ready
Reckoner Rate of the respective
Location.

d) Applicability of Premium:-
i) In the case of redevelopment under regulation No. 33(7), 33(9) & 33(10) (excluding clause No. 3.11 of Appendix-IV of Development Control Regulation-1991) the Fungible compensatory F.S.I. admissible on rehabilitation (of Tenant / Members) component shall be granted without charging of Premium.

ii) The redevelopment under D. C. Regulation No. 33(5) i.e. Low Cost Housing Schemes of MHADA, as well as redevelopment proposals of existing buildings in suburbs and extended suburbs by availing of Transfer of Development Rights (TDR), the fungible compensatory F.S.I. admissible on F.S.I. consumed in existing building for only rehabilitation component shall be granted without charging premium.

iii) The premium will be charged for fungible compensatory F.S.I. to be used or utilized for Salable Component of aforesaid redevelopments mentioned in item (d) (i) & (ii) above.

3) Important Provisions of Fungible Compensatory F.S.I. :-
i) In the redevelopment schemes, the Fungible compensatory F.S.I. to be utilized for the Rehabilitation Component shall not be permitted to be used in Free Sale component as well for to give any additional area over and above the eligible area to the Tenants / Occupants.

ii) The Fungible Compensatory F.S.I. is not admissible / permissible for the development of lands affected by CRZ (Costal Regulation Zone). The development in CRZ shall be in accordance as per MOEF Notifications and its amendmends from time to time, and shall be governed by earlier policy thereof.

iii) The Fungible compensatory F.S.I. can be used as “Regular F.S.I.”.

iv) The use and consumption of Fungible compensatory F.S.I. in proposed development shall be permitted in accordance to the terms and conditions in the said modification of Development Control Regulations for Gr. Mumbai-1991, vide Notification dt. 06-01-2012.