25 Housing projects in Mumbai halted over BMC, realtor dispute
Real Estate

25 Housing projects in Mumbai halted over BMC, realtor dispute

At least 25 housing projects in Mumbai are in limbo as realtors and Brihanmumbai Municipal Corporation (BMC) spar over-development fees in mixed-use projects. These projects are residential-cum-commercial projects where the former is predominant.

Development charge for residential use is 4% of the ready reckoner rate and 8% for commercial. An important part of BMC's revenue includes development charges.

While Maharashtra Regional Town Planning Act permits this charge to be levied on the predominant use, BMC has been insisting on charging proportionately. If the predominant formula is applied, large developers can save crores.

Developers told the media that when they apply for a mixed-use development to be charged at a rate of predominant development which is residential, civic officials insist they get an order from the court.

They said BMC must treat a court order as a precedent and not insist on each developer obtaining a fresh order every time.

In two recent orders, the Bombay high court ordered BMC to charge residential rates based on the predominant use formula. In Incline Realty's Borivali project, where 74% is residential, the court referred to the BMC law officer’s opinion who opposed development charges at a commercial rate.

In Oberoi Realty's Goregaon project, the executive engineer and law officer clarified the project was predominantly residential. Yet the developer’s plea was rejected by BMC to recover charges at 4%.

Image Source


Also read: Pune real estate sector hit by second wave of Covid-19

Also read: Real estate developers fear project delays due to Covid-19: CREDAI

At least 25 housing projects in Mumbai are in limbo as realtors and Brihanmumbai Municipal Corporation (BMC) spar over-development fees in mixed-use projects. These projects are residential-cum-commercial projects where the former is predominant. Development charge for residential use is 4% of the ready reckoner rate and 8% for commercial. An important part of BMC's revenue includes development charges. While Maharashtra Regional Town Planning Act permits this charge to be levied on the predominant use, BMC has been insisting on charging proportionately. If the predominant formula is applied, large developers can save crores. Developers told the media that when they apply for a mixed-use development to be charged at a rate of predominant development which is residential, civic officials insist they get an order from the court. They said BMC must treat a court order as a precedent and not insist on each developer obtaining a fresh order every time. In two recent orders, the Bombay high court ordered BMC to charge residential rates based on the predominant use formula. In Incline Realty's Borivali project, where 74% is residential, the court referred to the BMC law officer’s opinion who opposed development charges at a commercial rate. In Oberoi Realty's Goregaon project, the executive engineer and law officer clarified the project was predominantly residential. Yet the developer’s plea was rejected by BMC to recover charges at 4%. Image Source Also read: Pune real estate sector hit by second wave of Covid-19 Also read: Real estate developers fear project delays due to Covid-19: CREDAI

Next Story
Infrastructure Transport

Tata, Airbus to Build India’s First Private Helicopter Line

In a landmark development for India’s aerospace sector, Tata Advanced Systems Limited (TASL) and Airbus will establish the country’s first private-sector helicopter assembly line in Vemagal, Karnataka. The facility will manufacture the Airbus H125 and H125M, marking a significant milestone in India’s push for self-reliance in aviation and defence manufacturing. The new Final Assembly Line (FAL) will produce the H125, the world’s best-selling single-engine helicopter, known for its versatility and performance in extreme environments. The first ‘Made in India’ H125 is expected to ro..

Next Story
Infrastructure Urban

NeGD to Support Bharat Taxi in Building Cooperative Ride Platform

In a significant move for India’s digital and mobility transformation, the National e-Governance Division (NeGD) of the Digital India Corporation, under the Ministry of Electronics and Information Technology (MeitY), has entered into an advisory partnership with Sahakar Taxi Cooperative Limited, the company behind Bharat Taxi — a first-of-its-kind, cooperative-led national ride-hailing platform. A Memorandum of Understanding (MoU) has been signed between NeGD and Sahakar Taxi to provide strategic advisory and technical support covering key areas such as platform integration, cybersecurity..

Next Story
Technology

MeitY Hosts Pre-Summit for India–AI Impact Summit 2026

The Ministry of Electronics and Information Technology (MeitY), Government of India, hosted a series of Pre-Summit events for the upcoming India–AI Impact Summit 2026 at the India Mobile Congress (IMC) 2025 in New Delhi. These sessions mark a key milestone ahead of the main summit, scheduled for 19–20 February 2026 at Bharat Mandapam, New Delhi. Delivering the inaugural address, S. Krishnan, Secretary, MeitY, highlighted India’s innovative and frugal approach to AI development. “We have adopted innovative means by learning from others’ experiences to build projects and products that..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?