MUMBAI: The state urban development department on Friday issued a revised order on concessions to the
real estate industry after TOI pointed out that it had omitted ongoing projects and co-operative housing societies in the suburbs.
The new order stated, “The
development cess, wherever applicable, shall not be recovered for two years. The revised premium rates shall be valid and applicable for two years.” Industry experts said a commencement certification for use of additional floor
space index is issued only when development cess and premiums are paid.
There is a provision for making these payments in installments.
“In case of ongoing projects, those who are yet to make any kind of payment, will now not need to pay the development cess. The premium will also be lower. But BMC will still need to clarify if those who have made part payment can avail of the concessions,” said an expert.
The real estate industry had appealed to the government to reduce development charges and
cess, and premiums, to help it stay afloat.