Confusion on rules stalls infra projects in Mumbai

Building proposals are stuck at the Brihanmumbai Municipal Corporation (BMC) because of confusion regarding the new development control regulations (DCR), property developers.

From September 1, DCR 2034 replaced the DCR of 1991. But rules of the new DCR are yet to be implemented, developers said, adding that BMC’s engineers are not processing files due to this.

“Engineers are not able to take decisions. They should come out with a transition policy soon,” said Niranjan Hiranandani , chairman and managing director at Hiranandani Communities.

Though BMC has said the more stringent of the two DCRs will apply to project applications under transition, Hiranandani said what is stringent is matter of perception.

Developers said the challenges are mainly with the projects which are under construction.

“It is an industry-wide issue. Real estate projects require ongoing permissions to continue. While transition has to happen, it will help if it is done fast,” said Srikant Joshi, chief executive officer at L&T Realty, the real estate arm of L&T.

Another Mumbai-based developer said the BMC is asking them to come under new rules even for projects which are nearing completion. “It is virtually impossible to apply new DCR when the project is almost complete,” the developer said.