He said the plan will be "thrown into dustbin" if it does injustice to the citizens.
Thackeray also suggested "restructuring" of the plan, prepared by the Brihanmumbai Municipal Corporation (BMC) controlled by Shiv Sena and BJP, on the aspect of FSI rate at which homes are sold to people in the space-starved city.
"If people are under impression that the plan has been developed by Shiv Sena and not beneficial to them they are mistaken. If anybody thinks this is true then he has the zero knowledge of the municipal corporation.
BMC has proposed to hike FSI in city up to eight, which would mean that construction up to eight times the plot size would be permissible in certain areas.
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FSI is a development tool that defines the extent of construction permissible on a plot. It is the ratio of built-up area to total plot size.
Thackeray held a meeting with functionaries and legislators of his party here today to understand the nitty-gritty of the plan and the way Mumbai would shape up if it was to be implemented.
"If we develop Mumbai according to this plan, the city will become an FSI jungle. Only increasing FSI will not matter much to the common man who is unable to afford homes today. What matters is the FSI rate at which homes are sold. The plan needs restructuring on this aspect," he said.