The civic administration, on Monday, supported the concept of ‘paid floor space index (FSI)’, wherein any developer will be able to purchase FSI at the government ready reckoner rates and utilize it for construction.
“The concept was implemented in Mumbai after an amendment to the Monopolies and Restrictive Trade Practices Act (MRTP). This is a positive proposal for Pune, but we need to make some corrections and put conditions on use of FSI,” said municipal commissioner Mahesh Pathak in the general body (GB) meeting on Monday. All corporators supported the paid FSI concept by saying that the Transfer of Development Rights (TDR) has not yielded results but the scams associated with it have only tarnished the city’s image.
“During actual implementation, the paid FSI should be called premium FSI as the paid FSI concept is not according to the law,” said Congress corporator Aba Bagul.
TDR is a compensation which is granted to a property owner whose land is acquired by the municipal corporation to develop a civic amenity. Instead of money, the PMC grants an FSI certificate to the land owner. The land owner is allowed to use this FSI on his property or can sell the same to abuilder.
The FSI is the ratio of total floor area of a building to the size of the plot which indicates the maximum construction allowed on a plot. If the FSI is one and the plot size is 1,000 sq ft, the maximum construction allowed on that plot will be 1,000 sq ft. In paid FSI concept, the builder or developer can directly purchase the FSI from the PMC.
Some corporators alleged that those who have FSI certificates create an artificial scarcity in the market and then sell the TDR at higher rates.
Some were of the opinion that the PMC should pay compensation in cash to land owners and keep the FSI of that land with itself. The builders can purchase the FSI from the civic body.
The city has been a witness to several TDR scams. The first such scam hit the headlines in October 2005 when it was found that the PMC had been allegedly duped to the tune of Rs 14 crore by two property owners and their agent, who procured TDR for a plot of land in Kothrud which had already been acquired and paid for by the civic body.
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