MUMBAI: Leaseholders of plots in Mumbai’s commercial business district Bandra-Kurla Complex (BKC) have requested the Mumbai Metropolitan Region Development Authority to review and revise the stipulated four years’ time for completion of projects by another two years because of delay in receiving various approvals. Around 10 leaseholders of plots in BKC’s G block, which were auctioned by MMRDA between 2006 and 2008 through a tendering process, have come together to suggest that the construction deadline can be computed based on issue of full commencement certificate.
“We have written letters and had several meetings with the authority (MMRDA) to revise the timelines for completion of projects to accommodate the time taken for approvals. The lease deed says the construction work need to commence within three months of receiving approvals and the project has to be completed within four years of lease deed instead of saying since permission,“ said Jayesh Shah, chairman, Naman Group.
The G block of Bandra-Kurla Complex is planned as an international finance and business centre by its special planning authority MMRDA, and currently houses the headquarters of various multinational companies, banks and corporations, including two five-star hotels. An email query sent to MMRDA remained unanswered till press-time.
“We had to get various permissions including environmental nod and height clearance also during this period. There was no system of single-window clearance then and even now. How could we complete the work within four years if the permissions only took around two years?” asked Shah, who is representing BKC Property Owners’ Association. The association has requested the authority to consider the hurdles faced by the lessee, and review the period stipulated for completing the construction of buildings in a practical manner.
“It is general experience that the period taken by various authorities mentioned earlier for granting building permission taken anywhere between 1.5 and 2 years. Thereafter, execution of construction of additional built-up area also takes considerable time…depending on the additional built-up area permitted by MMRDA before the lessee could submit application for occupation certificate,” said the BKC Property Owners’ Association’s letter to MMRDA.
In case of BKC’s G block, the permissible floor space index initially for commercial plot was 2 times and the MMRDA raised it to 4 times in May 2008. It decided to allot additional built-up area to leaseholders on extra premium raising the FSI of individual plots to the range of 4-8 times based on the plot area and height clearance. Apart from this, few other changes also led to further changes in plans and approvals from various authorities such as the Chief Fire Officer and MCGM, the letter said.
Land parcels in BKC, the leading business districts in the country, have so far received a huge premium and the highest price paid here a decade ago for 18.5 acres was over Rs 1,100 crore. However, in August, MMRDA withdrew bids for sale of a 3-acre land parcel after potential bidders expressed concern over lack of clarity on rules and regulations, according to reports.
The construction of buildings can be started after receiving the commencement certificate. It is noted that the construction of buildings and granting full commencement certificate depends on development control regulations for BKC notified area and the applicability of FSI rules. Besides obtaining NOC/permissions from these authorities is not an independent exercise, but these are overlapping requirements to be completed by the lessees before receipt of approvals.
Credits ET Realty