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.

Next Story
Infrastructure Urban

Daikin Boosts Haryana’s Innovation Push with Rs 10 billion R&D Plan

Japanese multinational Daikin Industries has committed an investment of Rs 10 billion to set up a new research and development centre in Haryana. The proposed facility will focus on advanced technologies and sustainable industrial solutions, marking a significant boost to the state’s innovation and industrial ecosystem. The announcement follows the signing of a Memorandum of Understanding (MoU) in Osaka, Japan, during a visit by a Haryana government delegation held from October 6 to 8. The MoU was signed by Amit Kumar Agrawal, Commissioner and Secretary, Industries and Commerce Department, ..

Next Story
Building Material

Lloyds Metals to Build Rs 250 billion Steel Plant in Gadchiroli

Lloyds Metals & Energy Limited (LMEL) has announced an investment of Rs 250 billion aimed at transforming Gadchiroli in Maharashtra from a region once associated with the red corridor into a key industrial and growth hub. The company’s plans are centred on establishing an integrated steel production ecosystem, which will contribute significantly to regional development and employment. As part of its expansion strategy, LMEL is setting up a 4.5-million-tonne blast furnace in Gadchiroli, scheduled for completion by 2027–28, along with another 1.2-million-tonne facility in Chandrapur by 2029..

Next Story
Infrastructure Urban

UPI Crosses 500 Million Users, Fuels MSME and Digital Growth

The Unified Payments Interface (UPI) has achieved a new milestone, surpassing 500 million consumers and 65 million merchants across India. The platform, developed by the National Payments Corporation of India (NPCI), has expanded its reach to nearly 99 percent of the country’s pin codes, underlining its deep penetration into both urban and rural markets. According to a report by NPCI and the Boston Consulting Group (BCG) launched during the Global Fintech Fest 2025, UPI has evolved from being a digital payments mechanism into a key enabler of financial inclusion and small business growth. I..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?