The Maharashtra government, in a bid to provide level playing field to developers and reduce arbitrary decision-making, has amended the development control regulations (DCRs) for the state capital city.
According to the DCR amendments, balconies, flower beds, terraces, voids and niches would 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 (RR) rates. It can be used for making flower-beds or voids; else used for constructing bigger habitable areas.
The move is aimed at curbing the misuse of ‘free of FSI’, and mobilising much-needed revenue for infrastructure development of the city. The change in law will also pave the way for development of more than 19,000 old and dilapidated buildings in the metro. The government believes the country’s private-sector firms and multinational companies would invest in the redevelopment projects.
It was from this January 1 that the government revised RR rates ranging between 5 per cent and 30 per cent in 716 zones of Mumbai. The government believes that this is expected to shake up the realty sector, and bring in an element of certainty among the investors by cutting down the property prices.
In other changes, no premium will be charged for fungible FSI to be used in the rehabilitation component under the redevelopment of cessed buildings under DCR 33(7) and 33(9). In suburbs where buildings were not cessed, the fungible FSI on the index already consumed in the buildings would be available free of premium. This would help developments by Maharashtra Housing and Area Development Authority as also regular proposals for the redevelopment of the buildings, using transfer of development right in suburbs.
. “This is an attempt to bring in transparency and reduce arbitrary and discretionary decision-making,”
Responses have been positive. Mr. Nilesh K Vice President Of LandguruZ feels that the new rules were a step in the right direction. “It is a win-win situation for both the developers and the government,”. “Earlier, the rules had a lot of ambiguity and discretionary powers to be exercised by officers. This discretion or relaxation was over utilised by only a handful of developers in connivance with the officers. It could be seen from the market dynamics that 80 per cent of the development is been undertaken by 20 per cent of the developers due to their clout in discretion with the officers.”
It is noted that the only sad part was that even balcony was included in the premium area, which was since inception of DC rules in 1967 always free of FSI. However, the amendments in the DCR are “overall a positive change” in the real estate development.
Moreover, 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. Open space requirements for development of small plots under DCR 33(7) (redevelopment of cessed buildings) has been relaxed.
The requirement under the new rules would be only 1.6 mtrs open space on all sides of plots measuring 600 sq mtrs or less. This relaxation would also be available for small plot development under 33 (10).
The new DCR has given a relief to realty players, as it has relaxed the requirement of 2 staircase for buildings above 24 metres for building of height up to 70 metres and in case of the floor plate of buildings was less than 500 metres. The reduction of floor height in residential flats and shops from 4.2 metres to 3.9 metres would eliminate the need to inspect illegal mezzanine floors.
Sunday, March 11, 2012
Tuesday, January 17, 2012
Home owners will not be susceptible to blackmail New Bldg Approvals Will Cut Corruption
By Subodh Kumar (Municipal Commissioner-Mumbai) Source TOI Dated 16/01/2012
Building permission rules in Mumbai gave huge discretionary powers to authorities, which were misused. The amended development control rules (DCR) will put an end to this. Areas which were not included in the building’s floor space index (FSI) were given to different developers differently, spanning a huge industry of corruption. The bribe amount does not go from the developer’s pocket. He recovers it from the flat purchaser. Ultimately, the burden falls on the citizen.
There was an even bigger problem. Free of FSI areas like flower beds, voids, ducts, lobbies, etc were sold by builders and covered into living areas. Thus, although the manipulation was done by the developer, the flat buyer was held guilty of violating the law. Action was taken against him and he was also open to blackmail by unscrupulous elements in society or even by BMC staff.
Many buyers did not know what was legally permissible and what was illegal to cover in their homes. Hence, they become liable for action. Now, under the new rules, the buyer will receive everything legally permissible only and there will be no danger of blackmail or action from the BMC staff.
Mumbai is terribly short of living space. People, by and large, need more area than what they have. New rules allow 35% more area in which number of rooms or room size can be increased, instead of flower beds, voids, lofts etc, in which one cannot live. Some people argued that this 35% extra be used only to build flower beds, niches, Elevational features and not to provide additional or bigger rooms. I did not agree with this. The choice should be with the flat purchaser. Those who want additional room or bigger rooms should have that legally and those who want balcony or flower bed or voids or other Elevational features, can have that too. New rules permit both choices and life will be easy for the common man.
Earlier, loft size in a room or kitchen was restricted to 25% of the area. If anybody made a bigger loft, action was taken as it was deemed illegal. Now, all restrictions are removed and people can put the loft in their house to the extent they like. Reconstruction of cessed building in the island city will greatly benefit by these rules. Tenants were eligible to get a minimum carpet area of 300sq ft in the redeveloped building. Now, in addition, they can received an additional 105 sq ft area for which FSI will be granted free of cost to the developer. The developer, at the most, will have to incur construction cost for this additional area.
Redevelopment of cessed buildings will also be easier because most plots are under 600sq m in size. Thus, the side margins on all sides of such reconstructed buildings have been reduce to 1.5 m. This will facilitate early redevelopment of cessed buildings. The 35% additional FSI on rehab buildings is also allowed free of premium in the suburbs. It will help existing tenants/society members to receive higher area on redevelopment.
From now on, all developers will receive equal treatment. It will not only eliminate corruption, but will speed up building approval procedures.
Land prices will also come down, which have been artificially kept high due to too much money being offered by some developers, who were able to get very high free of FSI areas by manipulating the system. This will stop. Land deals area already being negotiated at lesser prices now. The benefit will ultimately reflect in lower real estate prices in the future.
Building permission rules in Mumbai gave huge discretionary powers to authorities, which were misused. The amended development control rules (DCR) will put an end to this. Areas which were not included in the building’s floor space index (FSI) were given to different developers differently, spanning a huge industry of corruption. The bribe amount does not go from the developer’s pocket. He recovers it from the flat purchaser. Ultimately, the burden falls on the citizen.
There was an even bigger problem. Free of FSI areas like flower beds, voids, ducts, lobbies, etc were sold by builders and covered into living areas. Thus, although the manipulation was done by the developer, the flat buyer was held guilty of violating the law. Action was taken against him and he was also open to blackmail by unscrupulous elements in society or even by BMC staff.
Many buyers did not know what was legally permissible and what was illegal to cover in their homes. Hence, they become liable for action. Now, under the new rules, the buyer will receive everything legally permissible only and there will be no danger of blackmail or action from the BMC staff.
Mumbai is terribly short of living space. People, by and large, need more area than what they have. New rules allow 35% more area in which number of rooms or room size can be increased, instead of flower beds, voids, lofts etc, in which one cannot live. Some people argued that this 35% extra be used only to build flower beds, niches, Elevational features and not to provide additional or bigger rooms. I did not agree with this. The choice should be with the flat purchaser. Those who want additional room or bigger rooms should have that legally and those who want balcony or flower bed or voids or other Elevational features, can have that too. New rules permit both choices and life will be easy for the common man.
Earlier, loft size in a room or kitchen was restricted to 25% of the area. If anybody made a bigger loft, action was taken as it was deemed illegal. Now, all restrictions are removed and people can put the loft in their house to the extent they like. Reconstruction of cessed building in the island city will greatly benefit by these rules. Tenants were eligible to get a minimum carpet area of 300sq ft in the redeveloped building. Now, in addition, they can received an additional 105 sq ft area for which FSI will be granted free of cost to the developer. The developer, at the most, will have to incur construction cost for this additional area.
Redevelopment of cessed buildings will also be easier because most plots are under 600sq m in size. Thus, the side margins on all sides of such reconstructed buildings have been reduce to 1.5 m. This will facilitate early redevelopment of cessed buildings. The 35% additional FSI on rehab buildings is also allowed free of premium in the suburbs. It will help existing tenants/society members to receive higher area on redevelopment.
From now on, all developers will receive equal treatment. It will not only eliminate corruption, but will speed up building approval procedures.
Land prices will also come down, which have been artificially kept high due to too much money being offered by some developers, who were able to get very high free of FSI areas by manipulating the system. This will stop. Land deals area already being negotiated at lesser prices now. The benefit will ultimately reflect in lower real estate prices in the future.
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