Replying to a calling-attention notice by Subhash Desai (Shiv Sena) and others, Chavan said a meeting of local legislators would be held after the monsoon session on the issue.
However, there would be no compromise on the flat sharing formula, the Maharashtra chief minister said.
Some members of the ruling Congress and NCP also backed the Opposition's demand, saying scrap the flat sharing formula and allow only premium payment for getting extra FSI.
In 2010, the state government amended the re-development scheme, Chavan said. In addition to premium payment, the state also gave builders an option of sharing flats for free with Maharashtra Housing and Area Development Authority for procuring more FSI, he said.
But few builders opted for the flat sharing scheme because it is not profitable to them. "We have rejected 265 premium-for-FSI proposals because we want flats from builders so that they can be given to the needy persons through lottery. We don't want money because MHADA does not have land to build houses," he said.
Only 17 proposals for sharing of flats were cleared, he said, adding that 36 were being scrutinised. In this scheme, MHADA gets two shares of flats built for free while builder keeps one portion for selling them in open market or giving them to the members of redeveloped society.
The area of the rehabilitation component has a cap of 300 square feet or of the size before re-development. In any case, the flat should not be bigger than 750 sq ft.