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.