Ahead of Maharashtra assembly elections, the state government will give some respite to the realty sector. The Maharashtra government may soon issue a directive to the Brihanmumbai Municipal Corporation to reduce the fungible compensatory premium for residential to 40% from 50% and commercial to 40% from 60% for two years.
According to DNA, apart from that, the state government may also ask BMC to cut the premium for additional floor space index to 40% from 50% for two years. The government may explore an option of issuing a directive to BMC in the larger public interest under section 153 of the Maharashtra Regional and Town Planning (MR & TP) Act, 1966. The state government could also issue directives to BMC for 50% reduction in development charges for residential projects from the present level of 4% of ready reckoner rates and 50% cut for commercial from the present level of 8% of the ready reckoner.
State urban development department officer told DNA, "The government will soon take a decision in this regard as the realty sector has argued that due to higher premiums and development charges it was difficult to carry on.''
