MHADA wants builders to give it flats in redevelopment projects

May 23, 2014, 08:38 IST | Ranjeet Jadhav

After charging a premium for additional FSI from 42 projects, the housing body now wants housing stock — a move that is likely to bring projects to a standstill

A change in policy proposed by the Maharashtra Housing and Area Development Authority (MHADA) is likely to hit 42 of their ongoing redevelopment projects in the city.

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After charging builders, who took up MHADA redevelopment projects, a premium for additional FSI, the housing authority is now asking them to also provide them some flats on the extra FSI given.

MHADA sources told
mid-day that the new proposal of granting pro rata FSI was discussed at a meeting yesterday. The plan, if approved, is likely to irk builders who may halt work, thus affecting the progress of the redevelopment projects and leaving residents in the lurch.

Earlier, MHADA used to charge a one-time premium from the society and builder for furnishing a no objection certificate (NOC) for the redevelopment of the society or the MHADA building. But, later, the housing authority came up with a new rule where it was decided that it would stop taking the premium and would instead take housing stock from the developer. MHADA wants these houses to be released through their affordable housing lottery.

Voicing concern
A copy of the letter written by the MHADA Mumbai Board Chairman to the MHADA vice-president, principal secretary (GoM), and state principal secretary (urban department) illustrates that if the pro rata FSI is taken from developers who have commenced redevelopment work and have already paid the premium, then there are chances that the projects might hit a roadblock.

The letter states: “MHADA has granted pro rata FSI on the basis of premium in respect of 42 projects in the month of December 2013 and January 2014, wherein NOC/offer letters are issued in accordance with the earlier provisions of the DCR 33 (5). In respect of other held-up proposals of the pro rata FSI granted with premium basis, then the societies and developers will suffer huge losses and will not complete the buildings.”

The letter further states: “The members of the society will also face irreparable damage, as they will be unable to get the possession. There might be various litigations due to the decision of MHADA, citing earlier cases where pro rata FSI is given on premium basis.

There will be strong resentment against the present government due to applying new provisions of DCR to old cases.” “The redevelopment proposal where NOC has been issued of Mumbai Board or offer letter has already been issued prior to the date of coming into force of this modified DCR 33 (5), and which is valid as on the appointed date, shall continue to be governed by the regulation applicable prior to this modification,” the letter states.

What is pro rat FSI?

As per the Development Control Regulations (DCR) 33 (5), after giving an FSI of 2.5 for a redevelopment project, extra FSI is created from the open space and road that is left while doing the redevelopment. This additional FSI is called pro rata FSI.

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