HC orders interim stay on additional FSI utilisation

Mumbai, May 23 The court said builders should not create a third party interest with regard to the additional FSI
The Bombay High Court on Friday thwarted the State government’s move to grant an additional 0.33 Floor Space Index (FSI) in Mumbai and passed an interim order preventing BMC from issuing commencement certificate for the utilization of the additional FSI.
The two-member vacation bench of the High Court stated that builders should not create a third party interest with regard to the additional FSI. The High Court said that any further purchase of the 0.33 FSI by builders as also the past transactions would be subject to the final ruling of the court. The case is slated for hearing on June 3. The interim order came while hearing a petition challenging the decision to increase the base FSI in suburbs from 1 to 1.33 on charging a premium based on ready reckoner rates.
However the maximum cap of FSI was to remain constant at 2. Usually developers are allowed to use an FSI of 1 and load another 1 FSI by buying Transfer of Development Rights (TDR) from the market. Following the government’s proposal, developers benefited as their dependence on TDR was reduced by 33 per cent and the TDR rates plummeted.
“Even though the State may contend that there is no increase in the FSI cap, the fact is that there is an increase in the net FSI. As against this, TDR is generated on one plot and used on another with no increase in the net FSI,” said YP Singh, the lawyer for the petitioner.
Over the last two months, since the new rule came into place, a premium of Rs 300 crore has been generated from the sale of the additional FSI, which will be shared equally between the State government and the BMC. The BMC has received 180 proposals for use of the additional FSI, of which 84 have been approved till date.
According to Ashok Shintre, chief engineer of the BMC’s Development Plan, the remaining 96 proposals that have been received so far will also be passed. “As per the court’s ruling, whatever proposals have been submitted till March 22 can be processed. All future proposals for 0.33 FSI will receive the sanction for their plan as well as an Intimation of Disapproval but no commencement certificate will be given,” he said.
Express News Service
Posted online: Saturday , May 24, 2008 at 12:16:12Updated: Saturday , May 24, 2008 at 12:16:12
http://www.expressindia.com

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