Hundreds of homebuyers and developers in Vasai-Virar are facing uncertainty after the Vasai-Virar City Municipal Corporation (VVCMC) halted the process of issuing Occupation Certificates (OCs) and registering 95 redeveloped buildings over concerns regarding excess Floor Space Index (FSI) granted during an earlier administrative regime.
For residents awaiting possession, the decision has revived long-standing anxieties. In Nalasopara East, 66-year-old shopkeeper Rajmal Jain has already spent 13 years waiting to reopen his shop in a redeveloped building. The latest development has now extended that uncertainty further.
VVCMC Commissioner Prithviraj PB has referred the concerned project files to the state Urban Development Department (UDD) for examination. Notices issued to developers have effectively stalled the OC and registration process.
Developers Challenge Civic Action
Developers appeared before the Town Planning Department on Friday for the first hearing and questioned the legality of the notices. They argued that the projects had received construction permissions from the civic corporation itself and had not violated applicable regulations.
“We took all legal permissions. The entire building is ready but we can’t sell any flats with the VVCMC’s latest decision,” said a builder.
Most of the redevelopment approvals were issued from 2023, when the civic body was under administrative rule. During this period, several projects were launched across Vasai-Virar.
The controversy centres on additional FSI benefits allegedly granted during the tenure of former municipal commissioner Anilkumar Pawar. Pawar was discharged in a case investigated by the Enforcement Directorate concerning 41 unauthorised buildings, while former town planner Y.S. Reddy remains in jail following his arrest in the case.
The current administration has questioned whether the provisions used to grant additional FSI to tenants were applicable to these projects.
Legal Battle Could Follow
Manish Bhishnurkar, deputy director of town planning, said the issue involves more than 90 files and that further action would be taken after guidance from the UDD.
Representing developers, advocate Nimesh Vasa has challenged the stoppage notices, citing the Maharashtra Regional Town Planning Act. He argued that once a Commencement Certificate (CC) is issued, construction cannot be halted unless an actual violation is established.
Vasa also questioned the absence of a specific legal provision in the notices and whether the corporation has the authority to stop registration of properties in projects that had previously received approvals.
“Will rules change simply because the commissioner has changed,” asks a developer. “We have taken loans to invest in projects and have been waiting for an OC for eight months. Homebuyers are pressuring us to hand over possession,” he said.
Homebuyers Caught in the Middle
The dispute could have significant consequences for buyers, particularly since many affected projects are registered with MahaRERA.
Tejpal Jain, who was expecting a new flat and shop in the 21-storey Bluestar building in Nalasopara, said, “We wanted to live in a highrise to get relief from flooding during the monsoon.”
Another buyer, 25-year-old Ashraf Sheikh, moved from Mahim to Virar after booking a home in Karari Heights, expecting registration by 2026.
“We were told registration for the new flat would be done by 2026. We left Mahim and shifted to rented accommodation here. We are paying Rs 16,000 in rent, which we will have to keep paying till we get possession of our new home,” said Sheikh.
The central question now before the VVCMC and the UDD is whether projects constructed under earlier permissions but later found to have possible FSI irregularities can be denied OCs and registrations.
Until the state government provides clarity, developers remain unable to complete the transaction cycle while homebuyers continue to wait for possession of homes they purchased in good faith.
Source: Hindustan Times
