Maharashtra cabinet agrees to amend town planning act

The Maharashtra cabinet on Wednesday agreed to make an amendment in the Maharashtra Regional Town Planning (MRTP) Act after the Bombay high court raised questions over provisions on charging a premium in lieu of additional FSI.

It will help municipal corporations resume the allocation of floor space index (FSI) against a premium, which was stalled for the last few months.

After some builders moved the high court, challenging the allocation of FSI against a premium, the court squashed the government notification and stated that there was no provision in the act for it. Many projects were stalled due to the technical hitch after the HC ruling in June.

The state cabinet on Wednesday decided to amend section 22(d) of the act with retrospective effect, which will help the government regularise decisions taken since the provision came into effect in 1991. Before the amendment is made in the winter session, in December, the government will issue an ordinance in a few weeks.

“There are three categories in which additional FSI is granted against a premium. Schools, colleges, hospitals and religious places are entitled for additional FSI. Residential projects get FSI for lifts, staircases and lobbies, while in the third category the civic chief enjoys discretionary powers to allocate the FSI. But the provision was squashed by the court. Now, with the amendment, the rights of local bodies will be restored,” an urban development department official said.

The premium has been a key source of income for local bodies. Mumbai’s civic body earned Rs1,100 crore in 2009-10, while other local bodies in the state collected Rs2,000 crore. Nearly 300 proposals were on hold after the high court squashed the state government decision to collect a premium, which has been collected since 1991.

The premium charged against extra FSI is expected to be used for infrastructural projects and effective implementation of the development plan.

The official said the amendment will be given retrospective effect to regularise FSI allotted for 20 years.