Developers undertaking redevelopment projects along Mumbai’s western coastline are facing uncertainty after the Slum Rehabilitation Authority (SRA) revised permissions for several Coastal Regulation Zone (CRZ) projects, reducing the construction area they can utilise and potentially affecting project profitability.
The changes concern developments in areas such as Bandra, Juhu and Andheri, where builders must surrender portions of their plots for road-widening setbacks. Under the 2019 CRZ notification, the permissible floor space index (FSI) must be calculated on the net plot area remaining after such land is handed over for public use.
However, developers and officials familiar with the approval process said earlier SRA permissions were calculated using gross plot areas, allowing greater construction potential. These approvals were issued under Regulation 33(11) of Mumbai’s Development Control and Promotion Regulations, which permits redevelopment projects in exchange for providing rehabilitation homes to eligible occupants.
More than 45 projects, mainly in the H-West and K-West wards, are reportedly affected by revised letters of intent (LOIs). Several are located around Mount Mary, Bandstand and Pali Mala Road in Bandra. Some construction has already commenced based on the earlier approvals.
Market sources said the revised permissions have reduced development rights by hundreds of square metres. In one Bandra project, the reduction is reportedly around 1,900 square metres, potentially causing substantial financial losses in a locality where premium homes can cost over Rs 1 lakh per sq ft.
SRA CEO Mahendra Kalyankar did not respond to queries. However, a senior authority official denied any wrongdoing and said only seven to eight projects had been affected.
A revised LOI for a Juhu project cited stricter application of the 2019 CRZ notification and the 2022 amendment to Regulation 33(11) under DCPR 2034.
Meanwhile, BMC has reportedly raised concerns over developers choosing SRA approvals, citing lower premiums and potential revenue losses. The revised permissions have also created uncertainty for builders whose project calculations and sales plans relied on the earlier construction entitlements.
Source: Times of India
