Mumbai: Developers must now give additional area to rehabilitation tenants

November 4, 2023

MUMBAI: The state’s urban development department has proposed that all BMC and Mhada rehab homes be of 405sqft area.

Clause 15 of the notification states, “The fungible compensatory area admissible on rehab component shall be granted without charging a premium and such fungible compensatory area for rehabilitation component shall not be used for free sale component and shall be used to give additional area over and above the eligible area to the existing tenants.”

The fungible compensation area is 35% of the total built-up area and was introduced in 2012. It is offered free of premium to the builder to enable the provision of larger homes—with 105sqft carpet area in addition to the minimum 300sqft carpet area to be given in a rehab flat. However, developers have maintained that this additional area is optional and cannot be given as it makes the project unviable.

With the government now specifically mentioning that it must be used to give additional area to tenants, builders will, henceforth, not be able to avoid it.

The notification clears the way for the demolition of 19 BMC-owned buildings in central Mumbai that are required to be removed for construction of the Bandra-Sewri connector. This connector will form an important link between the Bandra-Worli Sea Link and the Mumbai Trans-Harbour Link.

The notification states that each occupant to be rehabilitated will be given the minimum fixed carpet area of 27.88sqm (300sqft) and/or maximum carpet area of up to 120sqm (1,292sqft).

In case a building is declared dangerous, then 75% of the tenants must agree to the redevelopment by the BMC/Mhada. Occupants will be required to pay the premium and a tripartite agreement will be signed between occupants, developer and the BMC/Mhada.

  • Published On Nov 4, 2023 at 09:10 AM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETRealty App

  • Get Realtime updates
  • Save your favourite articles

Scan to download App

Leave a Comment