Thursday, December 29, 2011

After rampant violations of building rules, civic body tightens screws on developers. Sudhir Suryawanshi tells how homebuyers would benefit from next year after development control rules are in place

After rampant violations of building rules, civic body tightens screws on developers. Sudhir Suryawanshi tells how homebuyers would benefit from next year after development control rules are in place

I have been receiving a slew of housing proposals that include many flower beds but I hardly see any flowers in the city.”
Although this was municipal commissioner Subodh Kumar’s sarcastic take on the misuse of free-of-Floor Space Index (FSI) policy, looking at the city’s concrete jungle, it is not far from the truth.
An FSI is the amount of construction allowed on a particular plot. Higher the FSI, more the number of floors that can be added.
Builders sell FSI-free spaces such as flower beds, parking areas and balcony spaces by labelling them as super built-up areas. But later these spaces are used to increase the size of houses.
The builders will now be charged 100% premium on the additional 25% FSI that they are allowed to use in a residential project.
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The amended Development Control Rules (DCR) will make it mandatory for builders to include areas such as flower beds, deck parking and balconies in the FSI. This means builders will have to pay for the extra spaces such as parking areas, balconies and flower beds which were free of cost.
The developers can no longer cheat the civic body and buyers, thanks to the Brihanmumbai Municipal Corporation’s milestone decision. Property deals will be more transparent and will regularise the use of free FSI.
Residential projects will be passed and sold on the basis of carpet area only. Developers cannot show one building plan to the BMC and another to the buyer.
“There will be more transparency. Everything will be in black and white. Buyers pay for balcony, deck parking, passage and staircases although developers get these spaces free of FSI. After the new FSI rules come into effect, the developer has to pay for it,” said Pankaj Kapoor, managing director of Liases Foras, a real estate research firm.
While presenting the new rule to chief minister Prithviraj Chavan in July, Kumar said that in many cases, the deck parking space alone was as big as a flat. It has been seen that in a number of cases, because of lack of clarity and specific guidelines, there were serious misuses of regulations in the name of ornamental features.
“A flat’s 300 to 400 square feet are sanctioned for lily ponds with deck area, pocket terraces, ducts, voids, RCC bands but are later merged with habitable areas. The free-of-FSI balconies were sold to customers as liveable areas,” Kumar said.
High-rise buildings above 70m-height have mushroomed in the city but provisions for fire safety are lacking.
The new rule proposes to make fire chutes compulsory for buildings which are more than 70-metre high. A fire-check floor has also been proposed to create a vertical barrier to prevent spread of fire in high-rises.
The prices of developed land will be as per the ready reckoner rates.
No wonder, then, the developers are not happy with the changed DCR and want time to implement any additional compensatory FSI decision.
“Including all features into the FSI will increase a flat’s cost. The ornamental features will be given in lieu of heavy premium which will undoubtedly be recovered from the buyers. Property prices will shoot up,” said Manohar Shroff, general secretary of Maharashtra Chamber of Housing Industry, Navi Mumbai.
Milind Samel from 199 Architect Consultants said the sudden change in the DCR policy has created confusion and will lead to financial losses for developers, but in the long term, it will have a good effect.
“Now, buyers will get a clear plan of the residential project. Earlier, developers used to prepare two plans, one for the BMC’s approval and another for the buyers. This practice will stop. Buyers will get a genuine product,” he said.
The rule will have another advantage — it will put an end to the civic chief’s discretionary powers.
This will bring all developers at a level-playing field, said senior architect Vikkasini Hemaadi.
Earlier, some developers got enormous FSI concession and some got a step-motherly treatment because they were not close to heavy-weight politicians.
“We need changes in the policy but the changes should not be so harsh or drastic that it can halt development. Instead of charging 100% of the ready reckoner rate as per the built-up area, it should be charged as per the land rate,” said Hemaadi.
“If a high premium is charged for the additional compensatory FSI, property prices will go up again. So, buying a house will remain a dream in the city,” he added.
Pankaj Joshi, executive director of the Urban Design and Research Institute, does not agree that property prices would increase.
“Now, calculating the carpet area will be easy for buyers. Buyers illegally encroach on balconies, flower beds and ducts to increase the size of their houses,” he said. “The alterations cause structural damages resulting in building collapse. The new policy will stop this.”
Then, maybe next year we may actually see flowers growing on flower beds.
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