Pay premium in lieu of flats: Government to realtors

Mumbai: The Maharashtra government — in a move that will prove detrimental to its affordable housing scheme — has decided to ask developers to pay premium instead of housing stock for 104 Maharashtra Housing and Development Authority (Mhada) colonies.

The housing department has sent a proposal in this regard to the urban development department for the latter to make amendments in section 33 (5) of the Development Control Rules.

This will pave the way for development of the old colonies, but the government will lose housing stock that could have been used for affordable housing.

According to the proposal, “The development of a building on area of 2,000 square metres would get 3 Floor Space Index (FSI). The condition of housing stock has been removed. If the area is more than 2,000 square metres, an additional FSI of one will be given.” Earlier, the government used to give developers an FSI of 1.2 plus transfer of development rights, in return for premium or housing stock.

Housing minister Prakash Mehta said that the decision had been taken to ease out the development of the old buildings.

“The development of 104 Mhada colonies was stalled and hence we decided to take premium from builders instead of housing stock. This proposal will pave the way for redevelopment of colonies in suburban areas,” Mr Mehta said. However, housing department sources said the urban development department is not ready to make the changes. The UDD has been told to make amendments in other Development Control Rules too, sources said.

The premium on houses for the Economically Weaker Section and the Lower Income Group varies from 40 per cent to 55 per cent. The premium on houses for the Middle Income Group varies from 60 per cent to 75 per cent while for the Higher Income Group it will be from 80 to 95 per cent.

The issue had become a bone of contention between former chief minister Prithviraj Chavan and builders a couple of years ago. Mr Chavan did not allow the policy of taking premium from the builders in lieu of housing stock to be changed and hence the development was stalled for some time. 

Housing Woes

To get rid of slums situated on municipal land, the state has decided to allot the land to slum dwellers for development. The government will amend the Municipal Corporation Act 79 (G).

Only cooperative institutes that have slum dwellers as members were given land. The government will soon finalise the fees to allot the land to the slum dwellers.