Ongoing real estate projects out of cess relief

A south Mumbai developer said that he was utterly shocked when he received a call from his architect telling him that the concessions do not apply to the ongoing project.

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MUMBAI: Ongoing real estate projects in the city cannot avail of the concessions in development cess and premiums announced by the state government.

The urban development department released its notification dated August 20 on Wednesday announcing the relief under section 154 of the Maharashtra Regional Town Planning Act. Coming into effect immediately, they will be in force for two years.

A south Mumbai developer said that he was utterly shocked when he received a call from his architect telling him that the concessions do not apply to the ongoing project.

He said he had paid Rs 1 crore of the Rs 4.5 crores he owed to the BMC, and was unable to pay the rest because of the crunch. The concessions would have saved him Rs 1.1 crore. When his architect had gone to pay the remaining amount the BMC officials denied taking the payment.

A representative of the Maharashtra Chamber of Housing Industry (MCHI) – Confederation of Real Estate Developers Association (Credai) said they had categorically sought the concessions for ongoing projects to afford much-needed relief to builders. 

Ongoing projects are stuck because of the high cesses and premiums. He said that the MCHI-Credai will write to the municipal commissioner for a clarification.

Municipal commissioner Pravin Pardeshi said that the municipality will reconsider it.

A senior civic official squarely blamed the urban development department for the confusion. He said that the letter to the department only mentions what concessions can be granted and that they should be given for two years. It does not tell them who can be given the concessions and who cannot. The department has been present for all meetings on the matter and is aware of the demands of the real estate department.

An architect and member of the Practising Engineers, Architects and Town Planners Association (Peata) said that in the last three years, they have become so used to the casual approach of the urban development department that they don’t really expect any correct Government Resolution from them. A simple comma changes the entire meaning of many regulations but the department is very casual about it.

Source: ET Realty