FUNGIBLE FSI

The Maharashtra government, in a bid to provide level playing field to developers and reduce
arbitrary decision-making, has amended the development control regulations (DCRs) for the
state capital city.

According to the DCR amendments, balconies, flower beds, terraces, voids and niches would
be counted in the floor space index (FSI). To compensate for the loss of free-of-FSI areas,
fungible FSI to the extent of 35 per cent for residential development and 20 per cent for
industrial and commercial developments has been allowed with premium.

Fungible FSI would be available at 60 per cent premium for residential, 80 per cent for
industrial and 100 per cent for commercial at the ready recknor (RR) rates. It can be used for
making flower-beds or voids; else used for constructing bigger habitable areas.

The move is aimed at curbing the misuse of ‘free of FSI’, and mobilising much-needed
revenue for infrastructure development of the city. The change in law will also pave the way
for development of more than 19,000 old and dilapidated buildings in the metro. The
government believes the country’s private-sector firms and multinational companies would
invest in the redevelopment projects.

It was from this January 1 that the government revised RR rates ranging between 5 per cent
and 30 per cent in 716 zones of Mumbai. The government believes that this is expected to
shake up the realty sector, and bring in an element of certainty among the investors by cutting
down the property prices.

In other changes, no premium will be charged for fungible FSI to be used in the rehabilitation
component under the redevelopment of cessed buildings under DCR 33(7) and 33(9). In
suburbs where buildings were not cessed, the fungible FSI on the index already consumed in
the buildings would be available free of premium. This would help developments by
Maharashtra Housing and Area Development Authority as also regular proposals for the
redevelopment of the buildings, using transfer of development right in suburbs.

. “This is an attempt to bring in transparency and reduce arbitrary and discretionary decision-
making,”

Responses have been positive. Mr. Nilesh K Vice President Of LandguruZ feels that the new
rules were a step in the right direction. “It is a win-win situation for both the developers and
the government,”. “Earlier, the rules had a lot of ambiguity and discretionary powers to be
exercised by officers. This discretion or relaxation was over utilised by only a handful of
developers in connivance with the officers. It could be seen from the market dynamics that 80
per cent of the development is been undertaken by 20 per cent of the developers due to their
clout in discretion with the officers.”

It is noted that the only sad part was that even balcony was included in the premium area,
which was since inception of DC rules in 1967 always free of FSI. However, the amendments
in the DCR are “overall a positive change” in the real estate development.

Moreover, parking would be available as per the provisions of the DCR, but 25 per cent more
at the option of the developer. This would be without premium and without being counted in
the FSI. Open space requirements for development of small plots under DCR 33(7)
(redevelopment of cessed buildings) has been relaxed.

The requirement under the new rules would be only 1.6 mtrs open space on all sides of plots
measuring 600 sq mtrs or less. This relaxation would also be available for small plot
development under 33 (10).

The new DCR has given a relief to realty players, as it has relaxed the requirement of 2
staircase for buildings above 24 metres for building of height up to 70 metres and in case of
the floor plate of buildings was less than 500 metres. The reduction of floor height in
residential flats and shops from 4.2 metres to 3.9 metres would eliminate the need to inspect
illegal mezzanine floors.
Posted by LandguruZ at 11:57 PM No comments:
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Tuesday, January 17, 2012

Home owners will not be susceptible to blackmail New Bldg Approvals Will
Cut Corruption

By Subodh Kumar (Municipal Commissioner-Mumbai) Source TOI Dated 16/01/2012