Waive FSI premium in rehab schemes: MCHI

Keeping with its commitment to connect with its readers and address issues that affect their lives, DNA is organising a two-day conference-cum-exhibition on property redevelopment at Nehru Centre, starting today. The seminar will be inaugurated by state housing minister Sachin Ahir and municipal commissioner Subodh Kumar.

The Maharashtra Chambers of Housing Industry (MCHI) has asked the Brihanmumbai Municipal Corporation (BMC) to exclude redevelopment projects in cess buildings and slums from the rule of charging 100% premium on the use of extra floor space index (FSI).

“If the BMC accepts our demand, then the city will witness major development. The real estate market is already witnessing a sluggish period. Charging 100% premium on the use of additional FSI will put heavy financial burden on developers and create a stumbling block in the redevelopment process,” said Paras Gundecha, president of MCHI.

“To waive FSI premium in rehabilitation schemes will speed up the rehabilitation process for tenants of nearly 14,883 old and dilapidated cessed properties in the city,” claimed Harresh Mehta, president, Property Redevelopers Association.

Recently, the BMC had demanded that municipal commissioner Subodh Kumar ask the state government to waive the FSI premium for redevelopment schemes. The Confederation of Real Estate Developers Associations of India (CREDAI) had welcomed the BMC decision by not including redevelopment projects in the new development control rules for levying extra premium on FSI for certain areas. CREDAI national president Lalit Kumar Jain appreciated the move as a practical step.