Thursday, January 10, 2013

BMC Redevelopment Scam : BMC yet to recover ` 628 crore from builders

MUMBAI: The Brihanmumbai Municipal Corporation (BMC) is yet to recover Rs628.03 crore as premium from builders who took up redevelopment of civic properties.

By the end of 2012, the civic body had sanctioned 104 proposals for redevelopment of civic properties. From this, the BMC is expected to earn a revenue of Rs1,036.15 crore. However, so far, the civic body has received only Rs408.11 crore.

The premium payment is done in several stages. Twenty per cent of the amount is to be paid while getting the letter of intent sanctioned from the BMC, and 60 per cent while getting the commencement certificate. The remaining amount is to be paid before getting the occupation certificate.

The premium contributes to a major part of the civic body’s revenue. “Recovery of premium is a constant and ongoing process. We would recover the remaining amount from developers in due course of time,” said a civic official from the BMC’s estates department on condition of anonymity as he is not authorised to speak to the media.

Meanwhile, the civic body is in the process of framing policies that would add to its revenue. A month ago, the BMC formulated a policy under which developers will have to pay an additional 25 per cent of the land value, as stated in the ready reckoner, to carry out slum redevelopment on civic land.
    5 Jan 2013
    Hindustan Times (Mumbai)
    HT Correspondent

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