It's official: Government to sell premium FSI at 60% of RR rates
The CM has invited suggestions and objections on the proposed amendments to the Development Control rules
Mar 20, 2015
Source : The Times of India

MUMBAI: A day after the cash-starved Devendra Fadnavis-led BJP government proposed to mobilize an estimated Rs 5,000 crore from premium on additional floor space index, the state urban development department led by the CM on Thursday invited suggestions and objections on the proposed amendments to the Development Control rules to provide for enhancing the FSI limit from 0.33 to 0.6.

"After the finance minister submitted a proposal for enhancing FSI to mobilize funds, as per rules, we invited suggestions and objections on the modifications to the DC rules within one month from the date of publication of the notification," a senior bureaucrat told TOI.

On the proposed amendments to the DC rules, the bureaucrat said the premium shall be charged for additional 0.6 FSI at the rate of 60 per cent of the land rates of annual statement of rates (ASR) (ready reckoner rate) of the year in which FSI is granted.

TOI had on February 9 reported that the government had decided to fix the new price linked to the 2015 ready reckoner rates and charge builders 60% of RR rates.

The bureaucrat said the additional FSI shall not be permitted in the Bandra-Kurla Complex, CRZ areas, in schemes under SRA, for industrial users and matters which are sub-judice.

Secondly, the bureaucrat said the additional 0.6 FSI is optional, non-transferable and it is to be granted on application and to be used on the same plot.

"Except for the massive premium on additional FSI, by and large, there is no change in the DC rules. Changes in the rules have been made in view of the enhanced FSI," he said.

In Mumbai suburban district, he said, construction up to 1.0 additional FSI is permissible through use of TDR; now with 0.6 FSI being optional and part of the overall ceiling of use of 1.0 TDR, any disclosure made for use of TDR or FSI, while making agreements with purchasers, shall be held valid for use of 0.6 FSI. "We have proposed that no vertical extension of existing building by utilizing 0.6 FSI shall be permitted with erection of columns in the required marginal open space," he said.

The bureaucrat said on October 24, 2011, the urban development department had added a new clause to the DC rules to permit additional 0.33 FSI in suburbs and extended suburbs of Greater Mumbai subject to a payment of premium based on land rates of annual statement of rates of the year 2008. "Fadnavis felt that in public interest, there was a need to enhance the FSI to mobilize funds. Accordingly the rules were amended and it has been proposed to charge the premium on the basis of the 2015 ready reckoner rates," he said.

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