The premium for open space relaxation can only be 10%

18 Aug 2023 CW Team

The Bombay High Court's 2017 ruling that the premium charged for a lack of open space can only be 10% and not 100% has been maintained by the Supreme Court.

It has instructed the BMC to withhold 10% of the premium and return the remaining amount to Wadhwa Estate and Developer (I) Pvt. Ltd. within six weeks, along with interest.

The developer had filed a plan for the reconstruction of an MHADA building in 2011 and asked for forgiveness for a lack of open space.

The BMC issued a demand notice demanding a premium at a rate of 100%, amounting to almost Rs 5 crore, while approving the lack of open space.

The developer said that the BMC could charge 10% of the premium because the redevelopment was under Regulation 33(10) for Economically Weaker Sections, Low Income Group, and Middle Income Group tenements. But as the BMC refused to take anything into account, the developer went to the Bombay High Court.

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