Deferment payment facility extended to SRA project builders

Mumbai: The Slum Rehabilitation Authority (SRA) has extended the deferment of payment of premium facility to the builders for Fungible Floor Space Index (FSI). The SRA has allowed three to four instalments depending upon the height of the building over the period of two to three years. The move may be beneficial for builders but if they default on payment after consumption of FSI, it could affect the occupants of the project, sources said.  

According to the 35 (4) of DC rules, Fungible complementary FSI, not exceeding 35 per cent for residents and 20 per cent for industrial/commercial development over and above FSI, is permissible by the charge of a premium. It is 60 per cent, 80 per cent and 100 per cent of stamp duty as per ready reckoner rate for residential, industrial and commercial development respectively. One-third part of the premium is payable to the state government and remaining to the Brihanmumbai Municipal Corporation (BMC). 

The state government and the BMC had granted the deferment of payment facility on fungible FSI recently. 

Now, builders won’t have to pay whole premium amount initially. But, the move is likely to affect the interests of flat purchasers in the open-sell adversely. If builders don’t pay instalments and consume FSI, it will become a liability to the home buyers, sources said.

Confederation of Real Estate Developer’s Association Of India (CREDAI) had requested the SRA chief executive officer Deepak Kapoor to extend the same facility for SRA Scheme projects. Following which Mr Kapoor has issued the orders accordingly for SRA projects. Now, for buildings below 70-meter height, a builder has to pay 33 per cent of a premium on Fungible FSI amount initially, and 33 per cent after one year and 34 per cent two years after sanctioning of the project. For the buildings above 70-meter height, initial payment will be 25 per cent of the premium amount, and 25 per cent each will be payable every year for three years. In case of default, a fine and interest will be imposed.