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New Building Norms proposed in DCR are good for Mumbai

1 Comment Sub Category:Municipality,Realty News Posted On: Jul 29, 2011

In the early days, buildings were sold by carpet areas. In the 1960s, buildings began to be sold by built-up area (BUA), which includes walls and some passages, but excludes lifts, staircases, common passages, flowerbeds and other non-living spaces. The built-up area counted in the floor space index (FSI) was between 10% and 20% more than the carpet area. Somewhere, ethical lines blurred as avarice took over. This helped the builders substantially spread the cost of land among higher area thereby reducing the cost component of the land per square foot of built up area.

Over the years, the construction industry has thrived on manipulating the Development Control Regulations (DCR) and constructing additional BUA in mischievous ways in the form of flower beds, fire escapes, AC rooms, niches and other fake nomenclatures. These are free of the FSI calculations and yet, the buyer is charged for every square foot of the BUA by calling it Super-BUA (SBUA). Buyers usually have no idea of the actual carpet area they get.

The manipulation and duplicity has now reached a nadir. These days, the SBUA is between 70% and 100% more than the carpet area. Some developers offer SBUA that is 100% to 300% more than carpet area.

The purchaser may still have to pay whatever the market dictates, but the builders will consider reduced costs and quicker turnaround time while pricing their property. By legalising and yet controlling the loopholes, the corporation also gains. It will charge the developer premium for permitting construction of up to 25% additional area for residential buildings and up to 15% for commercial and industrial buildings. Thus the corporation will get a premium in excess of Rs2500 crore. Municipal taxes will also be calculated based on actual built-up area rather than the manipulated one. Thus the corporation will have a much deserved financial gain. So, land owners’ and corrupt officers’ loss will become the taxpayers’ and property buyers’ gain.

Mumbai municipal commissioner Subodh Kumar has proposed sweeping changes in the DCR. The chief minister is convinced that these changes are essential.

The government notification will be published shortly while builders are up in arms, threatening to seek the intervention of courts to delay the inevitable. They hope and pray that Subodh Kumar retires before these changes are implemented and somehow a ‘catastrophe’ can be averted. Some even have the temerity to speculate that ‘the CM will go back to New Delhi’.

DNA

One Response to “New Building Norms proposed in DCR are good for Mumbai”

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