K Raheja Corp purchases rights for a 1.53 lakh sq ft FSI in Mumbai

A joint venture between MM Developer and Saroj Landmark Realty LLP sold floor space index (FSI) rights of almost 1.53 lakh sq ft in central Mumbai's Wadala area to real estate developer K Raheja Corp for more than Rs 2.75 billion. The FSI rights are for the creation of the free-sale portion of a project to renovate a shanty neighbourhood in Wadala. The project's slum redevelopment component, which included the new tenements, is now complete and has been issued an Occupation Certificate (OC). On December 16, 2022, the Slum Rehabilitation Authority granted the OC with regard to the ground floor plus the first through nineteenth upper floors of the rehabilitation portion of the project. According to the rules governing slum rehabilitation projects, the free-sale section can only be sold after the rehabilitation phase is finished. With the aforementioned FSI rights, the corporation is able to create around 350 residential apartments. The company had paid stamp duty of more than Rs 160 million for the registration of the transaction that happened on January 25. Through its subsidiary K Raheja Corp Realty, which will pay the whole payment to the sellers in a total of 6 tranches, K Raheja Corp has purchased the development rights. K Raheja Corp has already paid the seller the first instalment, which represents about 10% of the entire consideration and totals more than Rs 270 million. After the developer completes the plinth level, the next 10% of the funds will be due, and after the developer receives the building's permission from the Ministry of Environment and Forest (MoEF), the third tranche of the consideration, costing Rs 550 million, will be due. Upon completion of each slab, the buyer will pay 2% of the entire consideration sum. The free-sale portion of the project will officially begin in June 2022 thanks to a commencement certificate from the authority. The space for the free sale component is the remaining piece that is available once the rehabilitation element has been completed, even though the overall property parcel spans more than an acre. Also read: Oberoi Realty's net profit increases by 50.27% in Q3 FY23 Arkade Group buys 1030 million plot from Bajaj group firm in Mumbai