Maharashtra builders get options on housing stock

Maharashtra government will now allow developers either to pay the premium or hand over the 20 per cent housing stock to government at the ready reckoner rate if they are developing more than 4000 sq metre of the plot.

According to the senior urban development official, the state government in 2008 came up with the policy to increase the housing stock and that houses has been sold by Mhada through the lottery system. According to the clause 33 (5) — Mhada colony redevelopment and 33 (9) — the cluster development, the developer has to hand over the 20 per cent of the housing stock against the total project area to government.

In return, a higher FSI, which is ratio between the built-up area allowed and plot area available, was given to the developers. The size of the houses for the economically weaker and low income group should be 300 sq to 500 sq ft carper in this scheme. The plot size has to be admeasuring minimum 4000 sq metres.

“The policy of permitting developers either to pay premium or housing stock scrapped in September 2010. The reason developers were only paying the premium but not handing over the housing stock. Government received the total 500 proposal and out of it, 99 per cent paid the premium  Developers reap more profit in paying the premium. In Mumbai, the property is gold so the developer prefers to pay premium as the per ready reckoner rate rather than handing over housing stock at the regular rate,” said an official.