We hope that you would find useful the below excerpt prepared by us with reference to the above subject.

Background

In view of the slowdown in the Mumbai Real Estate Development due to Covid 19 and other Global/National economic challenges the Urban Development Department of the Mantralaya (Maharashtra) has considered and partially accepted the recommendations made by the Deepak Parikh Committee for policy changes to add stimulus to the Real Estate Industry in Mumbai.

Intent

  • Add stimulus to the Real Estate Industry in Mumbai
  • Allow policy benefits to trickle to end-users.

Content

Current Status Change
Main Changes
Premium FSI as per Reg 30(A) was considered @ 50% of the Ready Reckoner Land Rate. As per circular dated 20/08/2019, this rate was reduced to 35% for Residential and 40% for Commercial upto 19/08/2021. The said FSI premium is now 25% of the Ready reckoner Land Rate for payments made upto 31/12/2021.
Fungible FSI as per Reg 31(3) was considered @ 50% of the Ready Reckoner Land Rate for Residential and 60% for Industrial and Commercial. As per circular dated 20/08/2019, this rate was reduced to 35% for Residential and 40% for Commercial upto 19/08/2021. The said FSI premium is now 25% of the Ready reckoner Land Rate for Residential and 30% of Ready Reckoner Rate for Commercial for payments made upto 31/12/2021.
Premium for additional FSI as per Reg 33(13) for IT Parks, 33(19) Commercial CBD Policy was 50% of the Ready Reckoner Land Rate and was reduced to 40% of the RR Land Rate as per the circular dated 20/08/2019 upto 19/08/2021 The said FSI premium is now 25% of the Ready reckoner Land Rate upto 31/12/2021.
Other Premiums for Additional FSI Reduced to 50% of the published rates upto 31/12/2021
Industrial to Residential/Commercial Conversion Premium was 20% of the Ready Reckoner Land Rate The same has been reduced to 10% of the Ready Reckoner Land Rate
Staircase and Lobby Concession, Deficiency Premiums were 25% of the Ready Reckoner Land Rate The same is now reduced to 12.5% of the Ready Reckoner Land Rate
ULC Rates Reduced to 50% of Existing Rates
Other Conditions
Stamp Duty on Sale of Real Estate for EWS, LIG, MIG, HIG To be borne by the developer till 31/12/2021.
Installment Policy dated 13/09/2019 Any balance payments due on the project as per the installments approved as per the installment policy shall not be considered for premium reduction. For new commitments discount on premiums is valid only on the quantum that will be paid before 31/12/2021
Development Charges and Cess Tax No Change
Land Under Construction Tax No Change

Feel free to contact us for any queries.

For further clarifications please contact the undersigned.

The above extract has been put together for the sake of convenience of the reader and is not to be construed as legal or statutory advice/opinion.
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