Maha to Implement Deepak Parekh Committee Recommendations

Amid the pandemic crisis, the Maharashtra government and Brihanmumbai Municipal Corporation (BMC) are working to provide relief to the real estate sector as soon as by the end of this month. The state government will soon implement the recommendations of the Deepak Parekh committee for the real estate industry, said BMC Commissioner Iqbal Singh Chahal. “Maybe in another two weeks’ time, the results of this will come out. You will see lot of reliefs come in through the cabinet decisions because these proposals are with the state cabinet now and they can be discussed in another two weeks’ time and decided upon,” Chahal said. The committee recommended a 50 percent cut in different premiums taken by MCGM from the real estate industry such as for enhanced FSI, TDR, second staircase, additional issues like open space deficiencies and others. The committee has recommended that it should be slashed 50 percent across the board for all these premiums and not only for Mumbai but for the entire state of Maharashtra. The committee has also suggested to bring down the premium paid on transaction of urban land to 5 percent from earlier 15 percent for commercial and 10 percent for residential. BMC along with urban development ministry have drafted 33 different suggestions in Mumbai DP plan 2034 where it is recommending certain relief and incesntive to the real estate industry. The commissioner also had marathon meetings with real estate industry players such as NAREDCO, CREDAI and MCHI to discuss relief measures for the industry. The BMC has already relaxed performance guarantees to 0 percent for all projects, reduced securities deposit and retention money to 2 percent each from 5 percent, giving cash relief to contractors. The contractors can pump the money back into these projects. Also, payments coming to BMC in the form of property tax, licence fees and others were deferred for 9 months with zero penalties, the Commissioner said.