CM cracks whip on errant developers

Mumbai: Thestatehasdecidedtotake action against developers involved in over 100 redevelopment projects in the city. CM Prithviraj Chavan on Thursday said strict action would be initiated against developers who failed to undertake redevelopment projects within stipulatedtimeon Mhada land. 

    While Chavan said that the nature of the action wasbeing decided,senior officialssaid it could be in the form of revocation of redevelopment permissions. Referring to a decision on granting additional FSI for the redevelopment of old Mhada buildings by levying a premium, Chavan said it was not in linewiththebasic principlebehindsanctioning the additionalFSI. 
    In 2008, the state urban development (UDD) department approved a proposal to grant an FSIof 2.5for such projects.The additional FSI could be availed either by paying a premium for the increased portion of the FSI or by sharing the built-up portion of the surplus FSI (FSI remaining after deducting the rehab portion and the developer's incentive for rehab) in a 2:1 ratio between Mhada and thedeveloper. 
    Understandably, the premium option got maximum hits. In fact, out of 530 projects approved, 511 were under the premium option. "The main idea behindtheFSIhikewastoimprove quality of housing for tenants and generate affordable housing stock from the surplus FSI. This was lost by offering the premium option," Chavan said.He addedthat the move was either taken without any ideologicalbasisor wasdriven by vestedinterests. 
    Sources said that an exercise to find out who was responsible for the introduction of the option was ongoing. While the UDD claims that the original Mhada resolution for the FSI grant contained the premium option, housing department sources claim it was introduced at the UDD level. Chavan said work was yet to begin in about 30% of the 511 projects approvedunder the premium option and said action would be initiated in such cases. The government discontinued the premium option in September 2010. 
    On Thursday, Chavan held a meeting of elected representatives to discuss the Mhada redevelopment issue. Following the meeting, sources said the state could alter the redevelopment model. While continuing to insist on built-up share, it is considering the option of either linking it with the market value of the area or reduceitsshare.Ithas planstospecify a cap on the rehabilitation area to weed out the practicewheredevelopersluretenantsby promising unjustified areas. Chavan said a decision in this regardwas "long overdue".