A policy shift by the Maharashtra government on the redevelopment of old and dilapidated buildings has cost the exchequer Rs 9,800 crore, according to a builders' association.
"Due to the amendment to the redevelopment regulations, in force since 2010, the state government has lost revenue of around Rs 9,882 crore that would have been generated through the sale of additional FSI on premium basis," Anand Gupta, treasurer of Builders Association of India (BAI) said here.
In September 2010, the state government amended the Development Control Regulations under which developers of old building have to hand over two-thirds of the developed area to MHADA, the state housing body. Balance can be sold in the open market.
The amended rule has also taken away the option of paying premium to Maharashtra Housing and Area Development Authority for additional floor space index (FSI).
"The amended rules have resulted in a complete halt to redevelopment activities across the metropolis leading to huge revenue losses to the state exchequer. Besides, the government also lost the opportunity to create nearly one lakh houses due to doing away with additional FSI provision," Gupta said.
According to BAI, 56 MHADA colonies comprising 3,701 buildings are among thousands of old structures in the city.
