Companies & Sectors
Mumbai builders consider options as government dithers on revival of extra FSI

Two years after the introduction of the extra FSI scheme that was subsequently struck down in court, builders are concerned that the Maharashtra government does not appear keen to resolve the matter

With the issue of additional floor space index (FSI) for constructions in suburban Mumbai still unresolved, and the Maharashtra government undecided on the matter, builders are considering formulating a new strategy in this regard.

"The government has not done what it should have," said a representative of a developers' association. "If the largesse is rolled back, we have to find a way to convince them to rethink." But he did not elaborate on the possible course of action, and refrained from saying whether a legal option was being considered.

In April 2008, the state government decided to allow an additional 0.33 FSI, over and above the existing cap of 2. This additional FSI could be availed on payment of premium. However, this was stayed and subsequently set aside by the Bombay High Court in October 2008 on the grounds that the provisions of the Maharashtra Regional Town Planning Act (MRTP), 1966 did not authorise levy of premium.

FSI (short for floor space index) is the ratio of buildable area to the total area of the plot. As a formula:
FSI= (Total covered area on all floors of all buildings on a certain plot)/(Area of the plot)
Thus, an FSI of 2.0 would indicate that the total floor area of a building is two times the gross area of the plot on which it is constructed.

Then in October last year, the MRTP Act was amended to authorise the levy of premium. However, developers have been pleading with the government to implement the amended provision so they can avail of the extra FSI by paying the premium.

In the meanwhile, several builders who had availed of the extra FSI when it was implemented two years ago and have completed their projects, have been hampered by the change in the policy as the municipal corporation has not allowed occupancy for these constructions yet. So if the government does not resolve the matter, they could suffer major losses. The problem was described by Sunil Mantri, president of the Maharashtra Chamber of Housing Industry (MCHI), in a letter to the state chief minister last month. This is also why some commentators are suggesting that the matter could go to the courts.

One analyst explained, "If the policy is struck down and these buildings have to be regularised, it would lead to harassment, both financially and otherwise. Already, delay in getting official permits has left them with many unsold properties. Developers are not likely to take this lying down and they will try some way to get the government to implement the additional FSI norm."

MCHI, after legal consultation with senior advocate KK Singhvi, has said that the government can implement the 0.33 FSI scheme without inviting suggestions or objections regarding the amendment to the Development Control Regulations. He cited the provisions to the MRTP Act that were amended retrospectively in 2010, and published in the official gazette dated 21 December 2010.

There is another aspect related to this FSI matter which is also worrying builders. This is the TDR matter. TDR (or transfer of development rights) is granted to plot owners whose land has been taken for a public purpose. TDR is saleable and added on to the permitted FSI, increases the buildable area.

But TDR is more expensive than FSI and the additional FSI scheme helped builders counter the TDR lobby. Today, TDR is mostly available from developers involved with slum rehabilitation and only a few like DB Realty, Ackruti and HDIL sell TDR.  "A rollback on the extra FSI," Mr Mantri wrote in his letter to the chief minister, "will frustrate the intention to curb rising prices of TDR in the hands of a cartel."

But it appears that the government has no intention of allowing the extra FSI. In a recent note to the state chief minister, the Urban Development Department has said that increasing the FSI in the suburbs would affect the fabric of the city's development plan. It says that additional FSI should not be granted unless the plan is amended suitably and infrastructure augmented.

The representative of the developers' association challenged this saying, "It is not rational to say that infrastructure will be overburdened, because in 2008 (when the extra FSI scheme was introduced) obviously the government did not think so."  

If the goes back on the scheme, it will be the second instance of the government reviewing a real estate policy decision of the earlier dispensation. In the first instance, the government had stayed the additional FSI granted to builders for parking lots.

User

COMMENTS

Shama Zaidi

6 years ago

ideally the government should crack down on all shady transactions by builders and cancel their licences. according to some accounts 50% of the cost of each flat goes towards bribes. has anyone done a proper survey of builder-neta-babu fiddles?

Scamsters use Grameen Foundation's name in email to promise donation of £9.5 lakh

This is a new fraud on email that uses the names of Grameen Foundation, and Nobel Peace prize winner Muhammad Yunus, to lure gullible people

A new mail is doing the rounds over the Internet, seeking to give money for a noble cause to the 'chosen' recipient. The email, under the name of Grameen Foundation, is nothing but a fraud and it has nothing to do with the Foundation by the same name that was founded to follow the model of Grameen Bank beyond the borders of Bangladesh to help poor people. But more about Grameen Foundation later.

The scamsters have not just used Grameen Foundation's name as the sender, but they have also provided the registered office address, the website link, and used the name of Paul Maritz, the chair of the Foundation. However, one look at the email ID from where it originates, immediately reveals the hidden face of the scamsters and their agenda.

The email reads: "To celebrate the new year 35th anniversary program, Grameen Foundation is giving out a yearly donation of 950,000.00 (nine hundred and fifty thousand Great Britain pounds) to 10 lucky recipients, by which at least 15% of the awarded funds should be used by you to develop a part of your environment. This is a yearly program which is a measure of universal development strategy. You are to contact Rosanna Ramos-Velita, Treasurer ([email protected]) with your PIN number (GF.101) in order to redeem your grant and get more information."

The question is, when the Foundation itself needs donations, funding, to run its projects, why would it give money to people like you and me? Why would some one who does not know us shell out 9.5 lakh pounds (about Rs6.87 crore) through an email. Besides, the email says that you must spend a minimum 15% of this amount for development of your environment. In other words, you can spend the rest of the amount for your own development!

Clearly, this is yet another fraud in progress, aimed at gullible people who are lured by lotteries or free money schemes. So, if you receive such a message, delete it immediately. Here are some points to keep in mind to help you identify such fake and fraud messages. Such scams are widespread, so governments and web sites like www.truthorfiction.com, www.fraudwatchers.org or www.scambaits.com, are giving special attention to the matter, to warn and help potential victims and catch scamsters. The web site of the Nigerian Central Bank has a warning on the home page that says, "If it looks too good to be true, it usually is." The US Secret Service and the British National Criminal Intelligence Service also undertake investigations regularly and issue warnings to people constantly.

Now about the Grameen Foundation. It is a global non-profit organisation based in Washington that aims to increase access of poor people to microfinance, like it has successfully done thrugh Grameen Bank which was set up by Nobel Peace prize winner Muhammad Yunus. The Foundation helps the world's poorest, especially women, to improve their lives through access to microfinance and technology. Being a non-profit organisation, it needs donations from people to implement its projects.

User

COMMENTS

piotr klimaszewski

6 years ago

I beg you to help turn a good day with a request on behalf of myself and my father both conducting economic activities in the industry I work clothes and my dad in the power industry both of our companies are on the verge of bankruptcy my dad founded the company in 1986 and I in 2006 in 2006 few employees left from my dad and started his own company with the same profile of activity taking us to 90% of customers out of more than half of employees in the company my dad got a saying my dad used
to employ more than 10 employees will now be only three people are the pension was only a few years and know that they will not find employment situation we have is a dramatic turn because of the heat asking for a loan or donation-free no matter what amount it could be like one million U.S. dollars from my calculations comes out that even paying that kind of money on deposit to the bank for the year You can multiply the money and the interest to pay off debts that we have and, for example
after a year or two to give back the money I know that such letters are replaced by the state and hundreds or even thousands, but I would ask a state to consider this request positively look forward to a response in this case even when the rejection thank you and sorry for the busy time of Peter I greet Klimaszewski Poland street Konopnickiej 5 25-406 Kielce postcode P.W. AP-TECHNIC Piotr Klimaszewski w w w. ap-technic.pl
gives the number of bank accounts to which contributions can be made
PL 70 1140 2004 0000 3802 5327 9194
kod BIC/SWIFT BRE Banku: BREXPLPWMBK
recipient
P.W. AP-TECHNIC Piotr Klimaszewski
ul.(street) M. Konopnickiej 5
post code 25-406 Kielce POLSKA
adres banku
BRE Bank S.A. INTERNET BANKING,
street al. Piłsudskiego 3,
post code 90-368 Łódź. POLSKA

PL 19 1090 2040 0000 0001 0528 3314
Kod SWIFT banku: WBKPPLPP
receipt
Piotr Michał Klimaszewski
ul. (street) W. Kadłubka 56B
post code 25-406 Kielce POLSKA
adress bank
Bank Zachodni WBK S.A.
Adress:
ul.(street) Rynek 9/11
post code 50-950 Wrocław Polska
if possible please send out e-mails to your friends



błagam o pomoc dzień dobry zwracam się z prośba w imieniu swoim i mojego ojca oboje prowadzimy działalności gospodarcze ja w branży odzieży roboczej a mój tata w branży elektronarzędzi obie nasze firmy są na granicy upadłości mój tata założyl firmę w 1986 roku ja w 2006 w 2006 roku kilku pracowników odeszło od mojego taty i założyli własną firmę o takim samym profilu działalności zabierając nam 90 % klientów obecnie ponad połowa pracowników w firmie taty dostała wymówienie kiedyś mój tata
zatrudniał ponad 10 pracowników teraz zostanie tylko trzech są to ludzie którym do emerytury zostało tylko po kilka lat i wiadomo że nigdzie nie znajdą już zatrudnienia sytuacja nasza jest dramatyczna dlatego zwracam się z gorąca prośbą o udzielenie pożyczki bezprocentowej lub darowizny w obojętnie jakiej kwocie mógłby to być np milion dolarów z moich wyliczeń wychodzi że nawet wpłacając taką sumę na lokate do banku za rok można pomnożyć te pieniądze i z tych odsetek spłacać długi które mamy a
np po roku albo dwóch oddać spowrotem te pieniądze wiem że takich listów otrzymują państwo setki albo i nawet tysiące ale prosiłbym bardzo aby państwo rozważyli tę prośbę pozytywnie liczę na jakąś odpowiedź w tej sprawie chociażby nawet odmowną dziekuję i przepraszam za zajęty czas serdecznie pozdrawiam Piotr Klimaszewski Polska ulica konopnickiej 5 kod pocztowy 25-406 Kielce P.W. AP-TECHNIC Piotr Klimaszewski w w w. ap-technic.pl
podaje numer kont bankowych na które można dokonywać wpłaty
PL 70 1140 2004 0000 3802 5327 9194 kod BIC/SWIFT BRE Banku: BREXPLPWMBK
odbiorca P.W. AP-TECHNIC Piotr Klimaszewski ul. M. konopnickiej 5 kod pocztowy 25-406 Kielce POLSKA
adres banku BRE Bank S.A. INTERNET BANKING, al. Piłsudskiego 3, 90-368 Łódź. POLSKA

PL 19 1090 2040 0000 0001 0528 3314
Kod SWIFT banku: WBKPPLPP
odbiorca
Piotr Michał Klimaszewski
ul. (street) W. Kadłubka 56B
post code 25-406 Kielce POLSKA
adress bank
Bank Zachodni WBK S.A.
Adress:
ul.(street) Rynek 9/11
kod pocztowy 50-950 Wrocław Polska
jeśli to możliwe proszę o rozesłanie tego mejla swoim znajomym

Political forces against anti-corruption movement: Hazare

"Some political and criminal forces are afraid of the recent awakening and huge support of the common man to the Jan Lokpal Bill. They are trying to create confusion and defame the movement for curbing corruption," anti-corruption crusader Anna Hazare said

Ahmednagar: Anti-corruption crusader Anna Hazare today charged "political and criminal forces" of trying to dilute the nationwide movement against graft by defaming and criticising the campaign for a comprehensive Lokpal Bill, reports PTI.

"Some political and criminal forces are afraid of the recent awakening and huge support of the common man to the Jan Lokpal Bill. They are trying to create confusion and defame the movement to defuse the emerging people's movement for curbing corruption," Mr Hazare told PTI from Ralegan Siddhi village, 40km away from here.

On criticism for reported remarks against political leaders, the social activist said that he never said that all politicians in India are corrupt.

"There are very few exceptions at all levels. But those exceptions can be honoured only if they too raise their voice against known corruption in their close circles. Keeping mum on issues related to corruption is also silent support to corruption and such leaders who fall in that category are actually of no use for nation," he said.

The veteran also faced flak from the Congress and NCP for allegedly calling voters corrupt and dishonest.

To which, the 73-year-old Gandhian said, "Political parties and leaders are responsible for maligning the voter's character in this country. They usually earn lot of black money using power and distribute a little amount of it to voters in elections to grab sympathy for their corrupt practises."

"Is it possible today for candidates who are meritorious and possess good moral character and commitment to win an election without huge amount of black money," he asked.

Under attack for appreciating Gujarat chief minister Narendra Modi and his Bihar counterpart Nitish Kumar, Anna said he only lauded their developmental efforts and has always condemned every communal riot including the one in 1984.

Mr Hazare will leave for Delhi tomorrow to attend the first meeting of the draft committee for Jan Lokpal Bill on 16th April.

He expressed his gratitude for the common man as well as all NGOs for their selfless involvement in the movement against corruption.

User

COMMENTS

RNandakumar

6 years ago

What else Anna expect from Poiticians
What he is trying to do if become an effective tool most of the corrupt politicians would run out of business. He must take it as a compliment because a politician prasing somebody is the one more dangerous as it indicates that he is already taking action for the downfall of the person he prasies. A recent example could be the reaction of Karunanidhi on Election Commission's strict vigil to curb his corrupt practices.

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)