BMC recovers Rs 8 cr against Rs 628 cr from developers
Brihanmumbai Municipal Corporation (BMC) has finally managed to recover Rs 8 crore of a total due amount of Rs 628 crore from the developers in Mumbai.
After the modification of the fee structure to recover dues, the civic body is yet to recover Rs 71 crore, while the remaining Rs 549 crore will be collected in phases.
The premium is charged from builders of redevelopment projects in Mumbai as per section 33 (7) of the Development Control Regulation (DCR), 1991. The redevelopment works in island city that extends from the localities Colaba to Sion and Colaba to Mahim have been considered.
In place of the premium, developers are also given a floor space index (FSI) of 3. However, as many developers as 104 have escaped the payment of their premiums till July 2012.
As per records, many developers would only pay the initial 10% premium which is based on capital value structure, but would disappear when it was time to pay the remaining 90%.
Due to this escapade, BMC had enough of losses. To check on these losses, the civic authority later decided to charge 20%, 60% and 20% of the premium amount at the time of issuing the letter of intent, commencement certificate for sale and occupancy certificate for sale, respectively. However, this move did not work out in front of the brains of the developers.
After going through so many losses, BMC is planning to come up with much stricter rules to recover the dues. The civic body’s action should act as a deterrent for developers.
Furthermore, officials in the civic body have claimed that the effort to recover dues has intensified and developers who have not cleared their dues, have been issued stop-work notices.
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BMC to demolish illegal structures built again
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Illegal structures in Sindhdurga CRZ to be demolished soon
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