If a builder refuses to load the entire FSI on the redevelopment project before the existing owners vacate, can this be detrimental to owners' interests? Is this a common practice for such projects?
Answered on November 08, 2017
Normally builders do not load entire FSI initially. It requires huge cash flow depending upon the location of the redevelopment property as premium charges payable to the MCGM are in direct proportion to the Ready Reckoner rates of the zone in which property is located & TDR rates are influenced by demand and supply. so by loading entire FSI finance cost of the project is going to increase and if it is financially viable, builder may agree to load entire FSI. However if its unviable then the next best option is to ensure that Owners/members new premises are identified in the initially sanctioned plans before they vacate existing place. Although after introduction of MAHARERA it is safe to vacate if the agreement is providing sufficient safety.
