Maharashtra developers may not seek any relief in development charges.

By Abhay Shah, Realty Quarter

It is unlikely that the state government will give demands to the real estate industry to drastically reduce development charges and premiums for various concessions.

The BMC has highly rejected any significant decrease, quoting several factors, including losing its main source of revenue, the octroi and not being obliged to pay property tax for tenements less than 500 sqft from this year. They pointed out that they had to schedule the development plan’s expenditure for the next five years – 2034.

Chief Secretary Ajoy Mehta held a meeting on 18 July to talk about the problems of the real estate industry. To modernize the sector, the industry provided a 2-page list of demands, including price relief. Sources stated that the government could change the prices, but no significant reduction is expected.

“In general, concession allowances in open space impairment, staircase or fungible FSI are paid upfront although the usage is in phases. The state can give lower interest rates and allow a longer payment period, representatives said.”

The government intends to support the building industry, said Dilip Sanghavi, president of Practising Engineers, Architects and Town Planners Association (Peata). “The decision will be known before 31 July, regardless of the choice made between government and BMC,” he said.