Realty cos will now be charged for extra FSI

MUMBAI: The local bodies can now charge a fee for granting additional floor space index (FSI), as Maharashtra government has amended the State Regional Town Planning Act (MRTP). The amendment will be implemented with retrospective effect from January 11, 1966, the day MRTP Act came into being, to validate all levies collected in the past four decades, an official from Urban Development Department said. The FSI is the ratio of the total permissible built-up area to the size of the plot it is constructed on.
The amendment came after the Bombay High Court quashed the notification granting extra FSI in Mumbai suburbs. Some builders had moved the high court, challenging the allocation of FSI against a premium. Many projects were stalled due to the technical hitch after the HC ruling in June.

The state cabinet then decided to amend Section 22(d) of the Act with retrospective effect, which will help the government regularise decisions taken since the provision came into effect. The premium charged against extra FSI is expected to be used for infrastructural projects and effective implementation of the development plan, he said.