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Developers pay regularisation charges after BMC issues stop work notice, ET RealEstate


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MUMBAI: After the BMC served a stop-work notice to YM Systems, which is constructing a tower at Motibhai Street, Agripada, for carrying out work beyond, which was permitted as per the commencement certificate (CC), the developer has paid a sum of about Rs 1.47 crore as regularisation charges.

The notice issued to YM Systems by BMC E-ward, issued on January 7, said the developer was carrying out work without valid permission, beyond part 20th floor up to 23rd floor.

Last August, the BMC had served a similar stop work notice to Glider Buildcon Realtors, promoter of the Piramal Aranya project on Rambhau Bhogale Marg, Byculla, stating that the CC issued was up to the 26th floor. However, the developer constructed it up to the 46th floor level. Subsequently, the developer requested regularisation and paid Rs 7 crore as regularisation charges to the BMC.

According to Piramal Realty, the payment was towards a standard regularisation and was done to ensure compliance with regulatory norms and facilitate the project’s progress, noting that this is not an uncommon industry practice.

In both the cases, the BMC acted on complaints by activist Santosh Daundkar. Former IPS officer turned lawyer YP Singh said “As per the development control regulations the plans have to be passed considering the full FSI. Therefore, to import TDR to add additional floors is not a healthy practice. Further it would mean expansion of the project which has already got an environmental clearance and for that a fresh environmental appraisal is required for additional floors. Without going through these mandatory procedures if the municipal corporation is regularising additional floors this will neither be consistent with the law, nor would it be conducive to healthy environment practices”

He added, “The supreme court also has deprecated the practice of adding additional floors to the building after obtaining environment clearance. It has become a regular practice in BMC to issue stop work notices and then withdraw. This is not the right Legal procedure. Once a stop work notice is issued all the concessions which have been granted have to be withdrawn and the entire process of approval has to be started afresh. It is a settled position in law that regularisation requires compliance to every provision of the town planning laws.”

  • Published On Feb 2, 2025 at 11:00 AM IST

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