The state government is unlikely to give into demands from the real estate industry to drastically reduce development charges and premiums for various concessions.
The BMC has strongly opposed any major reduction citing several reasons, including losing its chief source of income, the octroi, and that tenements less than 500 sq ft are not required to pay property tax from this year. It pointed out it has to plan expenditure for the next five years for the implementation of the Development Plan – 2034.
On Thursday, chief secretary Ajoy Mehta called a meeting to discuss the issues of the real estate industry. The industry had submitted a two-page list of demands, including the rate relief, to revive the industry. Sources said the government may tweak the rates but there will be no substantial reduction. “Premiums for concessions in open space deficiency, staircase, fungible FSI are generally paid upfront though the utilisation is in phases. The government may offer reduced interest rate and allow a longer period for payment,” said officials.
Dilip Sanghavi, president of Practising Engineers, Architects and Town Planners Association (Peata), said the government intends to give relief to the building industry. “Whatever decision is taken between the government and BMC it will be known before July 31,” he said.
