25 Housing projects in Mumbai halted over BMC, realtor dispute
Real Estate

25 Housing projects in Mumbai halted over BMC, realtor dispute

At least 25 housing projects in Mumbai are in limbo as realtors and Brihanmumbai Municipal Corporation (BMC) spar over-development fees in mixed-use projects. These projects are residential-cum-commercial projects where the former is predominant.

Development charge for residential use is 4% of the ready reckoner rate and 8% for commercial. An important part of BMC's revenue includes development charges.

While Maharashtra Regional Town Planning Act permits this charge to be levied on the predominant use, BMC has been insisting on charging proportionately. If the predominant formula is applied, large developers can save crores.

Developers told the media that when they apply for a mixed-use development to be charged at a rate of predominant development which is residential, civic officials insist they get an order from the court.

They said BMC must treat a court order as a precedent and not insist on each developer obtaining a fresh order every time.

In two recent orders, the Bombay high court ordered BMC to charge residential rates based on the predominant use formula. In Incline Realty's Borivali project, where 74% is residential, the court referred to the BMC law officer’s opinion who opposed development charges at a commercial rate.

In Oberoi Realty's Goregaon project, the executive engineer and law officer clarified the project was predominantly residential. Yet the developer’s plea was rejected by BMC to recover charges at 4%.

Image Source


Also read: Pune real estate sector hit by second wave of Covid-19

Also read: Real estate developers fear project delays due to Covid-19: CREDAI

At least 25 housing projects in Mumbai are in limbo as realtors and Brihanmumbai Municipal Corporation (BMC) spar over-development fees in mixed-use projects. These projects are residential-cum-commercial projects where the former is predominant. Development charge for residential use is 4% of the ready reckoner rate and 8% for commercial. An important part of BMC's revenue includes development charges. While Maharashtra Regional Town Planning Act permits this charge to be levied on the predominant use, BMC has been insisting on charging proportionately. If the predominant formula is applied, large developers can save crores. Developers told the media that when they apply for a mixed-use development to be charged at a rate of predominant development which is residential, civic officials insist they get an order from the court. They said BMC must treat a court order as a precedent and not insist on each developer obtaining a fresh order every time. In two recent orders, the Bombay high court ordered BMC to charge residential rates based on the predominant use formula. In Incline Realty's Borivali project, where 74% is residential, the court referred to the BMC law officer’s opinion who opposed development charges at a commercial rate. In Oberoi Realty's Goregaon project, the executive engineer and law officer clarified the project was predominantly residential. Yet the developer’s plea was rejected by BMC to recover charges at 4%. Image Source Also read: Pune real estate sector hit by second wave of Covid-19 Also read: Real estate developers fear project delays due to Covid-19: CREDAI

Next Story
Infrastructure Energy

REC Transfers HVDC Project to Power Grid

REC Limited has successfully handed over the Special Purpose Vehicle (SPV) for a High-Voltage Direct Current (HVDC) transmission project to Power Grid Corporation of India Limited (PGCIL). This strategic move aligns with the nation's objectives to strengthen its power transmission network. Key Highlights: Project Overview: The HVDC project, under the inter-state transmission system (ISTS) initiative, is a critical component of India's push toward robust and efficient electricity transmission. It aims to handle bulk power transfer across long distances while ensuring minimal losses. Role of RE..

Next Story
Infrastructure Transport

NF Railway Collaborates with IIT Guwahati

The Northeast Frontier (NF) Railway has signed strategic Memorandums of Understanding (MoUs) with IIT Guwahati to foster technological advancements and improve railway operations in the region. This partnership focuses on innovative solutions to enhance safety, efficiency, and sustainability in rail infrastructure. Key Highlights: Purpose of MoUs: The collaboration aims to leverage IIT Guwahati's expertise in technology and research for implementing cutting-edge solutions across railway operations. Key areas of focus include: Automation and digitization in maintenance. Sustainability initiati..

Next Story
Infrastructure Transport

Danapur Division Modernization Plans Revealed

The Railway Board has unveiled ambitious plans for the expansion and modernization of the Danapur Division, a critical hub under the East Central Railway. The initiative focuses on infrastructure development, enhanced passenger amenities, and operational efficiency. Key Highlights: Scope of Modernization: The Railway Board's blueprint emphasizes: Upgrading existing infrastructure to accommodate more passenger and freight traffic. Improving station facilities, such as platforms, waiting areas, and connectivity. Introducing advanced signal systems for safer and smoother operations. Freig..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000