MUMBAI: The state government may modify norms to increase the size of tenements for people residing in old and dilapidated Maharashtra Housing and Area Development Authority (Mhada) buildings which go in for redevelopment.
To get rid of excessive bargaining and unfair practices used by developers to lure societies, Mhada is toying with the idea of introducing a cap for the maximum size of rehabilitation tenements for such projects.
The move will influence redevelopment plans of close to 5,000 societies which house over 1 lakh people.
The government offers an FSI of 2.5 for redevelopment of such societies under section 33(5) of the development control regulation.
The government has plans to consider 484 sq ft as the maximum flat size in case of low-income group (LIG) projects. This could grow to 600 sq ft in the case of middle-income group projects.
With no maximum eligibility cap at present, societies have often fallen into the trap of dubious builders who promise unreasonably high tenement size for rehabilitation flats. Unable to meet the demand later, a number of them have abandoned projects leaving residents high and dry.
Chief Minister Prithviraj Chavan said last week about 30% of 530 such projects where permission for redevelopment was granted were yet to see any work done. The restriction on the tenement size will also provide a level playing field, sources said.
Builders have no reason to complain as the move will result in an increase in the incentive FSI offered to them. According to existing norms, a builder gets an incentive FSI of 300 sq ft for each rehabilitation tenement in the case of LIG projects. The incentive FSI is used for the sale component of the project. If the cap of 484 sq ft is introduced, even the incentive offered will rise proportionately, a source said.
The government is likely to retain the condition which requires a builder to share the surplus built-up area (that remaining after accounting for the rehab and incentive component) with Mhada in a 33:67 ratio. A proposal of paying the developer construction cost for the built-up tenements surrendered to Mhada and letting him pay premium at ready reckoner rates for his share is under consideration.