Supreme Court Limits Open Space Deficiency Premium to 10%
Real Estate

Supreme Court Limits Open Space Deficiency Premium to 10%

The Supreme Court upholds a Bombay High Court ruling, directing BMC to charge only a 10% premium for open space deficiency The Supreme Court has reaffirmed a 2017 decision by the Bombay High Court regarding the premium charged for open space deficiency. The court stated that the premium can only be 10% and not the previously charged 100%. This directive was given to the BMC (Brihanmumbai Municipal Corporation), instructing them to deduct the premium at the stipulated 10% rate and refund the excess amount with interest within six weeks to Wadhwa Estate and Developer (I) Pvt. Ltd. The case originated in 2011 when the developer submitted a proposal for the redevelopment of a MHADA building and sought leniency for open space deficiency. The BMC, in response, issued a demand notice charging a premium at a rate of 100%, which amounted to roughly Rs 5 crore. The developer argued that since the redevelopment was under Regulation 33(10) for Economically Weaker Sections, Low Income Group, and Middle-Income Group tenements, the BMC should only charge 10% of the premium. The BMC's refusal led the developer to approach the Bombay High Court.

The Supreme Court upholds a Bombay High Court ruling, directing BMC to charge only a 10% premium for open space deficiency The Supreme Court has reaffirmed a 2017 decision by the Bombay High Court regarding the premium charged for open space deficiency. The court stated that the premium can only be 10% and not the previously charged 100%. This directive was given to the BMC (Brihanmumbai Municipal Corporation), instructing them to deduct the premium at the stipulated 10% rate and refund the excess amount with interest within six weeks to Wadhwa Estate and Developer (I) Pvt. Ltd. The case originated in 2011 when the developer submitted a proposal for the redevelopment of a MHADA building and sought leniency for open space deficiency. The BMC, in response, issued a demand notice charging a premium at a rate of 100%, which amounted to roughly Rs 5 crore. The developer argued that since the redevelopment was under Regulation 33(10) for Economically Weaker Sections, Low Income Group, and Middle-Income Group tenements, the BMC should only charge 10% of the premium. The BMC's refusal led the developer to approach the Bombay High Court.

Related Stories

Gold Stories

Next Story
Products

Koemmerling opens Navi Mumbai experience centre

Koemmerling, a brand of the profine Group, has expanded its presence in the Mumbai metropolitan region with the opening of a new experience centre in Navi Mumbai and launched its Allure S46 minimal sliding door system for the Indian market.Located in CBD Belapur, the facility was inaugurated by Peter Mrosik, Owner and CEO, profine Group, along with Farid Khan, Chairman and Managing Director, profine India, and Kamal Bajaj, CEO, profine India.The company said the new centre will showcase its portfolio of uPVC and aluminium window and door systems to architects, developers and homeowners.The ina..

Next Story
Products

India's waterproofing market nears Rs 150 bn milestone

India's waterproofing industry is approaching a market size of Rs 150 billion and is expected to surpass the $2 billion milestone, according to speakers at the 2nd India International Waterproofers Conference & Expo 2026 organised by the Waterproofers Association of India (WAI) in New Delhi.The two-day event brought together more than 20 speakers, 55 international delegates and 53 exhibition booths, with discussions focusing on climate-resilient construction, advanced waterproofing technologies and international collaboration.Inaugurating the event, Durga Shanker Mishra, former Secretary, ..

Next Story
Real Estate

Dilip Buildcon Q1 FY27 Revenue at Rs 23.78 billion

Dilip Buildcon Limited reported consolidated revenue from operations of Rs 2,378 crore in Q1 FY27, along with EBITDA of Rs 429 crore and profit after tax of Rs 128 crore.Consolidated EBITDA margin stood at 18.1%, improving from 17.1% in Q4 FY26. On a standalone basis, revenue from operations was Rs 1,930 crore, EBITDA stood at Rs 199 crore and PAT was Rs 39 crore, with an EBITDA margin of 10.3%.The company’s order book stood at Rs 27,691 crore as of 30 June 2026, compared with Rs 28,830 crore as of 31 March 2026. Roads and highways accounted for 17.1% of the order book, irrigation and water ..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement