Good news for redevelopers of Mumbai’s Bhendi Bazaar

Good news spells for redevelopers as well as residents of India’s financial capital city’s most ambitious redevelopment project – Bhendi Bazaar. A high powered committee for the project has allowed an extra incentive of 5 per cent, translating into an additional built-up area of about 5,000 sq m. This derives to either more flats being constructed or the sizes of the flats being increased. Further, the Maharashtra Government will help the the Saifee Burhani Upliftment Trust (SBUT) in getting the consent of all the land owners. The ambitious redevelopment project involves over 250 structures spread over 16.5 acre; work on two sub-clusters has already commenced. With the modification in section 33(9) of the Development Control Regulations for cluster redevelopment in Mumbai in 2014, as per the new provisions, the concerned developer requires the consent of all the landowners. But if only 70 per cent owners agree to a project, the state government would help the developer in acquiring the consent of the rest. The old rules allowed SBUT 80 per cent incentive, while the new rules allow 5 per cent extra. The new rules calculate incentive not only based on the area, but also the existent Ready Reckoner Rate. Considering that the Ready Reckoner Rate at Bhendi Bazaar is less, the Maharashtra Government has thrown in an extra 5 per cent. Hence, the total incentive has gone up to 85 per cent, which translates to an additional approximate of 5,000 sq m in built-up area. With this, the total FSI of the project now stands at 7.