The Supreme Court has upheld a 2017 order of the Bombay High Court that the premium charged for open space deficiency can be only 10% and not 100%.
It has directed the BMC to deduct premium at 10% and return the remainder with interest within six weeks to Wadhwa Estate and Developer (I) Pvt. Ltd.
In 2011, the developer had submitted a proposal for the redevelopment of a MHADA building and sought condonation for open space deficiency.
The BMC while condoning the open space deficiency issued a demand notice charging premium at the rate of 100% which amounted to approximately Rs 5 crore.
The developer responded stating that since the redevelopment was under Regulation 33(10) for Economically Weaker Sections, Low Income Group and Middle Income Group tenements, the BMC could charge at 10% of the premium. However, when the BMC refused to consider, the developer approached the Bombay High Court.