Civic body v/s builders lobby

State government tightening its grip over realty sector and realtors are hiking prices and it is directly affecting to the common man

State government tightening its grip over realty sector and realtors are hiking prices and it is directly affecting to the common man

This is not any epic story or fairy tales but the real story of the Mumbai’s real estate sector. As from the last several months real estate sector is facing slowdown, on the other hand property prices are increasing day by day and rising housing loan rates are also severely affecting to the property deals. So due to all these reasons property market is falling down and due to high prices affordable housing remains a dream for Aam Admi and government is nowadays adding fuel to it by applying new harsh guidelines for constructing buildings.

So when Subodh Kumar has joined the office as Municipal Commissioner he has delayed the several projects for approval in the aftermath of this, builders turned furious over the state government.
According to builders state govt accountable for delayed projects:

In a media conclave conducted by the Confederation of Indian Industry (CII) builders blamed to the civic-body for delaying approvals of pending projects. “As in current scenario real estate market is facing slowdown from last couple of years and on the other hand government is delaying for approvals” senior official said. He added that ‘we are not in planning to hike prices of properties but the major hurdle is pending projects and reason behind is government even if one is following rules.”

Whereas, several developers said that “if delay in approval continues then in near future may property prices will increase.” Talking about the process of clearances, Lalit Kumar Jain, president of Confederation of Real Estate Developers Association of India said the process involved connecting with more than 150 people in about 40 departments of central and state governments and municipal corporations.

In the conference speakers have raised the several issues which realtors are facing from the government such as pending approvals, FSI hike and many more.

So after this blame when story move forwards and results into the harsh action from the state government it increases the premium rate to 100percent on extra floor space index.

BMC to levy 100% premium on extra FSI:

The Brihan Mumbai Municipal Corporation (BMC) commissioner Subodh kumar has proposed to charge 100 percent premium on realtors who wants extra permissible floor space index (FSI) and will mop up approx Rs. 3000cr per year by charging heavy premium.
Municipal commissioner has said to Chief Minister the proposed norms are for the construction industry. Kumar explained that “developers will be charged 100 percent premium if they required 25% extra FSI more than the approved for residential projects.”

Similarly, when it comes to commercial projects the BMC will permit 15percent extra built-up area whereas it will charge the same heavy premium to it. These additional areas include flower beds, lily ponds, voids, staircases, balconies, car decks and terraces, which at present are not counted in the FSI.

On the other hand developers sell all theses space to the home-buyers illegitimately and surge them to mix-up into their living area.

In the aftermath of this municipal commissioner’s proposal builders have said that by charging 100percent premium will cause to property prices it may go up by approx 30% to 40%. However, senior civic sources debunked the claim, saying there was no correlation between the proposed premium and property prices.

And the battle is not yet over Municipal commissioner has proposed the new guidelines for the building constructions according to him the new norms would be helpful for the realtors as well as home-buyers too.

New guidelines for construction industry to deter irregularities:

Nowadays civic body is tightening its grip over construction industry as recently Municipal commissioner Subodh Kumar has proposed several new norms for constructions of building, such as if developers want additional Floor Space Index(FSI) apart from the permissible FSI so they have to pay 100percent hefty premium. Adding fuel to this Kumar has proposed the new guidelines for the developers, he said that these norms may be anxious for developers but rules will reduce the irregularities in building constructions.

According to the reports Practicing Engineers’, Architects’ Town-planners’ Association (PEATA) former President Manoj Daisaria explained the proposed updates as a “robust move” which would bring about a level-playing field for Realtors. He added that “the proposed guidelines would be the helpful for the developers in the constructions of the modernized buildings.
Sector watchers said that “the proposed guidelines were good, but should not lead to concessions in the mandatory open spaces around a building.”

So municipal commissioner has explained the importance of the norms to chief minister Prithviraj Chavan and he has approved his proposal.

Green signal from CM to BMC for new proposed guidelines

As CM Prithviraj Chavan on fast track has given the green signal for the new proposed guidelines for the constructions of the building by the BMC commissioner Subodh Kumar it may result in the strong opposition from the builders lobby.

According to the proposed guideline by the municipal commissioner developers have to pay the hefty 100percent premium whoever wants to utilize the additional Floor Space Index (FSI) 25percent for residential projects.

As per the senior officials that “the municipal commissioner the new proposed guidelines will help to deter the violations in the constructions of the modern buildings.” So in this Brihan Mumbai Municipal Corporation’s (BMC) robust move CM Prithviraj Chavan said go-ahead in this new introduced norms by BMC commissioner.