Maharashtra Builders Get Full FSI in Lieu of Land Portion for BMC
Now, builders in the state can utilise the entire floor space index (FSI) of a plot for commercial development when they surrender a portion of the land for public amenities to the BMC. FSI is the ratio that defines how much can be built on a plot. The government’s decision will benefit all plot
Published -
Oct 13, 2020 7:38 AM
Now, builders in the state can utilise the entire floor space index (FSI) of a plot for commercial development when they surrender a portion of the land for public amenities to the BMC. FSI is the ratio that defines how much can be built on a plot. The government’s decision will benefit all plot owners who wish to construct retail or office buildings under Regulation 33 (19) of Development Control and Promotions Regulations. The FSI under this regulation is a humongous 5 for commercial development. The value of such plots could rise 10% to 40%, depending on the portion to be handed over to the BMC for a public road. If 20% of a 1,000-square-metre plot is surrendered to the BMC for a public road, the FSI the builder received earlier was limited to just 80% of the plot (net area). The department’s clarification last month, though, will now allow the builder to use the FSI on the entire 100% (gross) of the plot. With FSI 5, the builder would have earlier got 4,000 sq m of floor space.Now the developer will be entitled to 5,000 sq m construction. In this case, the value of the plot shoots up by 20%.
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