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BMC cheers as ban on construction ends

The Supreme Court's decision on lifting ban on new construction in the city has brought cheer to the civic body

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While presenting the budget for the financial year 2018-19, Ajoy Mehta, the BMC chief had admitted that a real estate slowdown forced the civic body to scale down its earnings estimate from its building proposal department. However, the Supreme Court's decision on lifting ban on new construction in the city has brought cheer to the civic body.

Sanjay Darade, chief engineer of the Building Proposal department of BMC said that around 1,000 housing projects, which could not take off in the last two years, following a ban from the Bombay High Court on new constructions due to the poor disposal of construction debris will now get a push.

Due to a ban on new construction, redevelopment of tenanted properties in the suburbs, sale components of redevelopment projects could not be taken off. "Now, these redevelopment projects can take off," said Darade.

In 2016-17, the BMC had set a revenue target of Rs 5,348 crore from the Building Proposal department, and it could have achieved only Rs 3,939 or 74 per cent. The BMC then brought down the target to Rs 4,997 crore in 2017-18 and then to Rs 3,947 crore in 2018-19 due to a sluggish real estate market.

According to an official from the accounts department of BMC, the Supreme Court's decision will help the civic body bring more money in its coffers. "In the last two years, the revenue dipped due to a slowdown in the real estate market and this loss of revenue was around Rs 2,000 crore," said the official. However, the BMC expects that in the next six months, it will cover up revenue loss, caused due to ban on new construction.

However, during these periods, there was no ban on redevelopment of MHADA, cessed, old and dilapidated buildings, cluster and slum redevelopment, and the construction of hospitals and educational institutes.

Vijay Balamwar, deputy municipal commissioner of Solid Waste Management (SWM) said that developers have to find out a place outside Mumbai to manage debris from constructions sites. "They have to take a no-objection-certificate from the site owner for dumping debris to get construction permission," said Balamwar.

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