A Proposal of BMC to amend Development Control (DC) Rules, 1991 is underway

BMC is considering a Proposal to amend Development Control (DC) Rules, 1991 soon examines Adv, R. P. Rathod. 

Its very important now-a-days to keep a close watch on what government is doing in the backyard, what proposals are under consideration by the government, which laws are being enacted or amended, because ultimately it impacts us – the end users or the public explains Adv. R. P. Rathod.

In such a close watch Adv. R. P. Rathod examines that the BMC is considering modification in the Development Control Regulation (DCR) 1991, which gives free floor space index (FSI) concessions to builders for their projects. A marathon meeting was held last week to mainly discuss doing away with the concept of granting free FSI under DCR (35).

Currently, areas such as the lobby, lift, staircases, flower beds, ducts, balconies and lily ponds are not counted in a building's FSI. FSI is a development tool that lays down norms on how much you can construct on a plot. Although the lobby, staircase and such other elements are not included in the FSI, several builders sell the space by deeming these elements "super built-up" area.
Discussions on the proposal to bring in certain modifications in DCR 1991 are under consideration, where those places that are free of FSI will be charged.

The current Municipal Commissioner feels that they should be monetized so that BMC earns some revenue. In a nutshell, everything constructed will be counted in the FSI. Effectively, if the proposal gets cleared, builders will have to pay for building components that are free of FSI. "With the revenue generated from this, BMC can invest in capital intensive projects, where it will add value to the city and its citizens. The concept of misusing of free FSI will thus soon disappear.

As the development plan revision is in progress, so DCR modification will soon be a part of it.

As part of procedure a series of meetings will be held to finalize the modification and the proposed change will be then have to be sent to the urban development department for a final clearance.

For End user, What is the Interpretation of all this says Adv. R. P. Rathod: Flower Bed, Lobby, Passage, Balcony, Toilets, Servants Room, Letter Box, Parking’s, Terrace, Swimming Pool, Electric Meter Rooms, Stairs, Communication Tower, Dish Antenna etc. are going to be included in FSI. If these areas get included in FSI, the builder will pass on this to the end user & will start legally charging for it & incidentally the property rates will be hiked.

I think that, if this amendment comes into force, there will be definitely upward increase in prices in the real estate sector by 25% says Adv. R. P. Rathod.

He further adds that, if these proposals are enacted & enforced the next step would be, MCGM will be start charging Property Tax for these areas also, as they are included in FSI, needless to say adding a burden on the end user concludes Adv. R. P. Rathod.

-      Adv. R. P. Rathod.