The Maharashtra Government, in an attempt to provide balanced playing field to Developers and reduce arbitrary decision-making, has amended the Development Control Regulations (DCRs) for the State Capital City, Mumbai.
The new Development Control Regulations may not be a major bound in countering malpractices completely as we are all aware that many countries have beaten India in diverse fields. However, India has out-beaten all countries in one field and that is Realty and Construction activities where widespread corruption is on the pinnacle since ages. One of the areas of this majestic achievement by established interests of the corporate and politico field is redevelopment of old Housing Societies and Commercial Joints in Metro Cities.
According to the new DCR Amendments, Balconies, Flower Beds, Terraces, Voids and Niches would now be counted in the Floor Space Index (FSI). To compensate for the loss of free-of-FSI areas, Fungible FSI to the extent of 35 per cent for Residential Development and 20 per cent for Industrial and Commercial Developments has been allowed with premium.
Fungible FSI would be available at 60 per cent premium for Residential, 80 per cent for Industrial and 100 per cent for Commercial at the Ready Recknor Rates (RR Rates) which are revised from this January 1st, 2012 ranging between 5 per cent and 30 per cent in 716 zones of Mumbai. Fungible FSI can be used for making Flower-Beds or Voids; else used for constructing bigger habitable areas.
However, to protect the interests of the existing owners and occupiers so as to avoid the transfer of Fungible FSI in respect of existing building to the free sale portion by the Developers, it has also been further clarified that the Fungible FSI in respect of rehab portion would not be transferable to the free sale area of the Developer. No premium for Fungible FSI would be charged for the members whose flats were being redeveloped though the space restrictions would be the same.
The parking would be available as per the provisions of the DCR, but 25 per cent more at the option of the Developer. This would be without premium and without being counted in the FSI.
Beneficiaries of Redevelopment Projects:
One, there is no impact of this Fungible FSI method on rehabilitation. The Developer will not have to pay premium on the area used by the existing member while giving him space in the Redeveloped Project. He is free to use “Transfer of Development Right” (TDR) option.
Two, the fungible compensatory FSI cannot be used for the free sale component and shall be used to give additional area over and above the eligible area to existing members. This relates to many growing families in the cities, where 300 sq ft space currently given after redevelopment is hardly sufficient. The amendment restricts the Developer on selling the extra FSI at market rates. He will have to give additional 35 per cent i.e. 105 sq ft in this case, to the family by charging construction cost, at the most.
REALTY SHAKE UP
Fungible FSI at 60 per cent premium for Residential, 80 per cent for Industrial and 100 per cent for Commercial at Ready Recknor Rates
Redevelopment of 19,000 old and dilapidated buildings get an impetus
More parking to be available without premium and without being counted in the FSI
Balcony to be given on cantilever projection