Mumbai: Govt Had Said Builders Would Not Be Exempt
The state government may once again court controversy for favouring some Mumbai builders despite a categorical assurance not to exempt them from paying a hefty premium to the BMC.
The urban development department (UDD) has failed to issue a written clarification to the municipal corporation, raising questions about the government's intentions.
For the record, government officials say these builders will have to pay the full premium when they approach BMC for building extra areas in their projects. But civic sources say without a written order from the UDD, this assurance means nothing. Civic sources fear the corporation could lose a minimum of Rs 1,000 crore if this premium is waived off. Last month, a TOI expose showed how a UDD notification would help a section of developers to avoid paying premium to BMC for building extra areas. The state government backtracked after TOI broke the story in its May 30 edition.
UDD secretary Nitin Kareer soon went on record to say the government would write to BMC, asking it to charge the full premium. But government sources alleged the bureaucracy was under pressure not to issue the clarification to BMC.
Municipal commissioner Ajoy Mehta said, “We are still awaiting a clarification from the government.“ CM Devendra Fadnavis did not respond to text messages. His principal secretary Praveen Pardeshi too did not respond to SMSes.
The BJP-led government's largesse centres around a rule which came into force on January 6, 2012. It said that developers can build 35% extra space provided they pay a premium, which is 60% of the locality's ready reckoner rate.
However, many under-construction projects, which received their preliminary sanctions (say , for the first five floors) prior to this date, were exempt from paying this premium. But when they approached BMC for further per missions (say , from floors six to ten) after January 6, 2012, the rule mandated they pay premium for the remaining floors if they chose to build 35% extra.
Since then, many developers who were caught between the old rule and the new decree lobbied with the government to exempt them completely .
Early this year, the government proposed to modify the rule for such builders so they do not have to pay premium. It invited suggestions and objections from the public. One of the first to oppose it was BMC.Besides losing revenue, the civic administration warned the state this will allow builders to misuse large areas, which were arbitrarily sanctioned by successive municipal commissioners between 2005 and 2010.
The civic chief has not received any builder's proposal ceived any builder's proposal for clearance ever since the notification was issued. But Mehta said if any file comes to him, he would charge full premium.
If the state fails to issue a written clarification to BMC, the biggest beneficiaries will be builders of luxury towers in Lower Parel, Worli and Nepean Sea Road, where property prices are the highest. Many developers have built way beyond the permissible limit.
Though the new law allows 35% extra construction, these towers were allowed to build over 50% to 60% extra areas, comprising flower beds, ducts, parking decks, balconies etc.
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