WHAT IS FSI?

Floor space index, also known as floor area ratio (FAR), is the maximum area
that can be constructed on a plot of land. It is regulated by the municipal or
local authorities of the respective State government. FSI norms are usually set
based on the National Building Code. It is calculated by dividing the total
covered built-up area on all floors of a building by the area of the plot it stands
on.
For instance, if you have 1,000 square feet of land on which you want to build a
residential or commercial building and the FSI in your locality is 1.5, then you
could build up to 1,500 sq.ft of covered structures on the plot.
Effectively, you can build apartments comprising one or two floors or a single
dwelling unit on the plot, but not beyond 1,500 sq.ft. The constructed area
would include staircases and other basic structures.
The fees paid to the government for this construction is known as FSI fees.
Now, if a developer wants to build over and above the FSI limit, the authorities
sometimes give permission to do so for an additional fee.
This is termed as premium FSI. A developer can utilise the area (over and above
the FSI limit) for providing additional amenities such as flower bed, gardens,
balcony and private terraces.
Why is it important?
Building activities in the past happened without any control. Therefore,
considering the need for ventilation and safety, governments thought it prudent
to set limits on construction by way of FSI norms. This limit plays a crucial role
in controlling the burgeoning of buildings, especially in metros. Higher FSI for
an area indicates greater building volume. Therefore, among all the regulations
in development planning, FSI is among the most crucial. Since many people
migrate to cities for job opportunities, FSI limits help regulate vertical building
growth and living conditions, while accommodating the burgeoning population.
While determining FSI, apart from the carrying capacity of land, related aspects
such as adequacy of water supply, sewerage system, solid waste disposal and
road capacity are taken into consideration. This is why FSI varies with each
State and each region within a State. FSI varies with the type of building as
well.
While the increase in FSI adds to the supply of housing units and should usually
lower housing prices, it often doesn’t work that way in prime areas of a city like
Mumbai. Land-owners usually peg up the value of land available for sale when
there’s an increase in FSI. For home buyers, an increase in FSI, particularly in
high-density buildings, would mean more residents needing to share common
amenities such as lifts, pools, clubs, electricity and water. The maintenance cost
in such cases could also go up.
On the other hand, home buyers who had bought the property with lower FSI
would now have the option of adding to their built-up area for higher capital
returns. But FSI increases in the outskirts of a city may lead to lower property
prices, as builders may lower the price to stimulate demand for homes in these
areas.
Bottom-line
It’s a tough trade-off between building homes for the aspiring and preventing
cities from turning into concrete jungles.

CRZ-II 
 Areas which are developed up to the shoreline and falling within the
municipal limits; includes built-up area – villages and towns are that are
already well established
 Buildings are permissible on the landward side of the hazardous line.
 Other activities such as desalination plants are also permissible.
 Some construction is permitted only as per guidelines specified by the
notification.
CRZ-III: 
 Areas that are relatively undisturbed and do not fall under either in
Category I or II and also include rural and urban areas that are not
substantially developed.
 Between 0-200 metres from HTL is a No Development Zone where no
construction shall be permitted.
 Only certain activities relating to agriculture, forestry, projects of
Department of Atomic Energy, mining of rare minerals, salt manufacture,
and regasification of petroleum products, non-conventional energy
sources and certain public facilities may be permitted in this zone.
 Between 200-500 metres of HTL, those permitted in 0-200 metres zone,
construction of houses for local communities and tourism projects are
permissible.
Facts
On December 31st 2011 the slum dwellers decided to appoint ABC company.
On Feb 7 2012 company got the power of attorney to do the needful aggrements
deeds etc.
The company has submitted the scheme of redevelopment of slum in joint
venture with MHADA
On December 31 2013 MHADA sanctioned the land admeasuring 17500 sqm
But according to slum rehabilation authority the letter passed in January 31st
2014 the land admeasuring 16000sqm
But the company proposed to undertake the redevelopment of land measuring
10000sqm which was encroached by slum dwellers.
The balanced land of the land coverd in MHADA LOI is under MSRDC
That means 7500sqm.
In LOIs it state that the revenue from the sale of flats 51% belongs to MHADA
and 49% to the property developer.
But the LOIs is expired and need to be revalidated.
So the company Xyz and PRS entered into joint agreement that Xyz would
share the company entitlement of 50:50 ratio.
On September 30th 2017 Company PRS and XYZ entered into agreement of
property development.

WAY FORWARD
When the Developer develops the land in contravention of plan or contravenes
any restrictions or conditions or does not implement the scheme within the
time, Section 13(2) of the Slum Act confers powers on the Competent
Authority to remove the errant Developers and replace by any other competent
agency.