July 2, 2025: The Mumbai Metropolitan Region Development Authority (MMRDA)’s initiative to regularise unauthorised constructions in the Bhiwandi Surrounding Notified Area (BSNA) has witnessed a surge in applications, though only a small fraction have secured approval so far.
Launched in March 2022, the policy was designed to address two objectives: reducing legal disputes over illegal constructions and generating revenue to support MMRDA’s expansive infrastructure projects. The scheme allows property owners to legalise unauthorised structures by paying significant penalties, ranging from 20% to 100% of the base premium rate—depending on the nature and gravity of the violation.
Under the regularisation policy, MMRDA received 331 applications. Of these, only 33 have been approved, while 113 were rejected due to non-conformity with zoning regulations outlined in the sanctioned BSNA development plan and the failure to provide requisite documents. A further 185 proposals remain pending, with deficiencies issued.
In the separate category for the compounding of unauthorised structures, MMRDA received 194 proposals. However, none have been approved thus far. A total of 174 applications were rejected outright, while 20 remain under review. According to officials, the zero-approval rate reflects the stricter scrutiny applied to this category.
Penalties are calculated based on 25% of the base premium rate as defined by the government’s ready reckoner for stamp duty during the relevant year. The severity of the violation determines the penalty—ranging from 20% for minor non-compliances to 100% for major infringements, such as constructions using additional FSI, TDR, or involving amalgamated plots.
MMRDA officials say the policy provides a balanced framework to tackle irregular urban development. “This initiative not only legitimises unauthorised structures but ensures developers contribute to the city’s infrastructure growth,” said an MMRDA spokesperson.
Source: The Free Press Journal
