Real estate developers, led by the Confederation of Real Estate Developers’ Associations of India (CREDAI) Maharashtra Chamber of Housing Industry (MCHI), are championing substantial alterations in the acquisition of Transferable Development Rights (TDRs) from Mumbai’s Dharavi redevelopment project, managed by the Adani Group.
Advocating for Higher FSI and Leniency in Premiums
In their propositions, these developers are advocating for amplified Floor Space Index (FSI) in exchange for acquiring TDRs from the Dharavi Redevelopment Project Private Limited (DRPPL), wherein the Adani Group maintains a stake. Additionally, they are seeking relaxed premiums to be paid to the government for procuring these TDRs.
Response to Government’s Call for Suggestions
Responding to the state government’s request for suggestions and objections regarding changes in TDR procurement rules for the Dharavi redevelopment project, CREDAI-MCHI accentuated the importance of TDRs in fostering real estate development. TDRs facilitate the transfer of development rights from one site to another, often due to constraints like height limitations or public reservation projects.
The developers assert that enabling a higher FSI for their plots through investment in Dharavi TDRs would be more financially feasible for potential buyers (developers). They referenced past instances, such as the introduction of slum TDRs in 1997, where a similar FSI increase was allowed.
Reservations and Requests
CREDAI-MCHI expressed reservations about imposing a cap on the sale price of Dharavi TDRs, highlighting that the sale price of slum TDRs was unrestricted and was not specified in the Dharavi project’s tender document.
Furthermore, the association has petitioned for exemptions, including the waiver of premiums for fungible FSI in sale and rehab buildings, among other relaxations and exemptions.
Controversy Surrounding the Dharavi Redevelopment Project
The Dharavi Redevelopment Project, awarded to the Adani Group in 2022 by the Maharashtra government, encountered controversy in November following allegations by the Congress party. They accused the BJP of altering norms to favor the Adani Group. In response, the Adani Group refuted the allegations, emphasizing the transparent nature of the regulatory process and dismissing claims of favoritism.
A query has been directed to Adani Group’s DRPPL, and any forthcoming response will be updated accordingly.
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(Source: Moneycontrol)