Mumbai: Developers are now required to provide rehabilitation tenants with more space.

Abhay Shah - November 4, 2023

MUMBAI: The urban development department of the state has suggested that all BMC and Mhada rehab homes have a floor area of 405 square feet.

Section 15 of the notification reads, “The fungible compensatory area admissible on rehab component will be given without charging a premium and such reusable compensatory area for rehabilitation section shall not be used for free sale component and shall be used to give extra area over and above the eligible area to the existing tenants.”

Introduced in 2012, the fungible compensation area comprises 35% of the total built-up area. In order to facilitate the provision of larger homes—with 105 square feet of carpet area in addition to the required minimum of 300 square feet for a rehab apartment—it is provided to the builder without charge.

Developers, however, have insisted that this extra space is optional and cannot be provided because it would render the project unfeasible.

Now that the government has made it clear that it must be used to provide renters with more space, builders won’t be able to avoid it going forward.

The notification clears the way for the demolition of 19 BMC-owned buildings in central Mumbai that are required to be removed for the construction of the Bandra-Sewri connector. This connector will form an important link between the Bandra-Worli Sea Link and the Mumbai Trans-Harbour Link.

According to the announcement, each occupant undergoing rehabilitation will receive a minimum fixed carpet area of 27.88 square feet (300 square feet) or a maximum of 120 square feet (1,292 square feet).

If a building is deemed unsafe, the BMC/Mhada’s reconstruction requires the consent of 75% of the tenants. A tripartite agreement between the tenants, developer, and BMC/Mhada will be signed, and occupiers will be compelled to pay the premium.

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