A jurisdictional dispute between the Brihanmumbai Municipal Corporation (BMC) and the Slum Rehabilitation Authority (SRA) has intensified over development permissions, additional floor space index (FSI) and premium collections under Regulation 33(11) of the Development Control and Promotion Regulations (DCPR) 2034. The disagreement concerns hundreds of redevelopment proposals and the authority responsible for approving projects on plots without existing slum settlements.
BMC Commissioner Ashwini Bhide, in a letter dated July 22 to the Urban Development Department, raised objections to around 300 SRA-approved schemes. She alleged that concessions intended for slum rehabilitation were being extended to vacant and non-slum plots and called for the municipal corporation to retain planning authority under the regulation.
The BMC claims developers are approaching the SRA for approvals because its interpretation allows more favourable development benefits and relaxations. It has also raised concerns about inadequate open spaces in projects proposed in areas such as Bandra, Juhu, Worli and Malabar Hill.
The financial implications are significant for the civic body. Development-related charges, including construction premiums and building approval fees, have become its second-largest revenue source, exceeding property tax collections. In FY26, these collections generated nearly Rs 12,000 crore for the BMC.
The disagreement dates back to August 2024, when former municipal commissioner Bhushan Gagrani raised similar concerns. Subsequently, the Urban Development Department issued directions on October 15, 2024, which the BMC interprets as restricting Regulation 33(11) to slum rehabilitation-linked proposals.
The SRA, however, has defended its position. In its September 2 response, it stated that the regulation, previously covered under Regulation 33(14)(D) of the 1991 rules, enables plot amalgamation and transfer of development potential to create Permanent Transit Camp (PTC) housing for people displaced by infrastructure projects. It also maintained that applicable premiums are collected at standard BMC rates.
On November 2, the Urban Development Department reiterated that the SRA must process proposals in accordance with its October 2024 directions, without resolving the BMC’s demand for greater control.
The issue affects a substantial housing pipeline. SRA records show 522 approved schemes have generated 32,337 project-affected-person tenements, of which 6,604 have been handed over. The estimated requirement stands at 50,000 immediately and 2.2 lakh under the Development Plan. Continued uncertainty could affect approvals, project finances and civic revenues.
Source: Money Control
