Redevelopment of around 1400 buildings in Malad, Kanivali East, Thakur Complex, Thakur Village and parts of Borivali were stalled in 2011 as they fell within a periphery of 500 metres from CODs.
Two months after the Defence Ministry issued a fresh circular relaxing norms for redevelopment projects and the height of redeveloped buildings within a periphery of 500 meters from Central Ordnance Depots (CODs), the Brihanmumbai Municipal Corporation (BMC) has approved at least 27 of 62 proposals received for redevelopment projects around such depots in the western suburbs.
However, developers are now feeling the heat since the premium money charged by the civic body has increased by 150 per cent since 2011, when their projects were stalled as the Defence Ministry issued a notification restraining any construction within 500 metres from CODs.
Redevelopment of around 1400 buildings in Malad, Kanivali East, Thakur Complex, Thakur Village and parts of Borivali were stalled in 2011 as they fell within a periphery of 500 metres from CODs.
With the relaxed rules clearing the decks for redevelopment of buildings beyond 10 metres from the depots, residents of the affected areas are now hopeful that they will finally get their dream home. But developers, speaking on condition of anonymity, have revealed that the big projects are the worst affected, since the amount to be paid to the civic body is so huge that it is becoming practically impossible for the developer to even take up the project.
In fact, several developers have started re-negotiations with the society members to settle for lesser areas than were earlier promised.
"Developers are bleeding. They are not only facing the interest losses since the projects were delayed for all these years, but also capital loss. Post 2013, the increase in premium has escalated exponentially high. Even for the mid-level projects, there is 70 - 80 % increase in the total cost. Smaller projects will also feel the pinch. Civic body relates the fees with the ready reckoner rates and the premium on FSI which has increased in past few years", said a developer.
He added that apart from the ready reckoner rates, FSI has been curtailed as per the width of the road outside the building to the redeveloped. TDR reforms introduced in November 2016 have also changed the dynamics of the real estate industry. TDR rates had increased from Rs. 3000 to Rs. 8500. However, after the reforms it dipped, but is still close to Rs. 5500.
"Even the construction cost has gone high. Prices of royalty on sand is another issue. New building norms and clearances required have made things more difficult", said a source.
A senior official from the Building Proposals Department of the BMC confirmed that all the 27 residential projects have been approved including the plans and necessary documents. "Various fees have been worked out as per the ready reckoner rates and the annual increase in the premium on FSI. This has been conveyed to the respective developers. Once they pay the deposit and fees, their projects will get final nod within 30 working days. However, unless they pay up the necessary amount, we cannot allow the construction," the official said.
Approval is pending for the other 35 proposals as necessary documents and digital plans need to submitted.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "DNA")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}