Don't worry about withdrawal of incentives for redevelopment

Our society is contemplating redevelopment. Is it possible that the FSI incentives are withdrawn in the times to come?

In the city of Mumbai and suburban areas, floor space index (FSI) incentives have been provided by use of transferable development rights (TDR) and under other schemes for redevelopment of properties.

The prevailing incentives under various development control regulations are not so high as to cause apprehension of withdrawal of some of them.  Present incentives are just making the redevelopments possible.

One observes that the quantum of incentives provided, over a period of time, have gradually increased for the logical reason that ultimately the government wants to encourage the redevelopments.

What is being questioned by the present municipal commissioner is the kind of manipulations taking place in construction of elevation features free of FSI. Although, these elevation features do not consume FSI and are legally not saleable areas but the in practice, they are being sold as usable areas. 

Many of the rules of law do not get implemented because of the supply of housing stock continuing to be far less than the demand. View that the incentives may be withdrawn and thereafter redevelopment propositions may become less attractive is without basis or logic.

Tarun Ghia is a chartered accountant and can be reached at ghiatarun@rediffmail.com. Pradnya Vairale is an advocate and can be reached at advpradnyag@gmail.com