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Consolidated Policy for Additional FSI

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0% found this document useful (0 votes)
1K views16 pages

Consolidated Policy for Additional FSI

Uploaded by

MANDAR N
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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( ,91P,99-
BOARD NOTE

Item No QE
Board Meeting No. 624
Date of Meeting 07.02.2020
Sponsoring HOD Manaqer (Town Services-I)

A) Subiech A coneolidated policy to determine the rateg of Additional Lease

^f\ Premium for grant of additional FSI and/or Change of Uee for various
types of Users.

B) Issues for Considerationr

o Vide Board Resolution No. 10775 dated 15.03.2013, the Board has approved a
comprehensive policy to determine the rates of additional lease premium for
granting permission to consume different types of FSL
. Subsequently the Govt. vide its various Sovernment resolutions, has approved
policies for grant of additional FSI for Education, Health, Hotel and IT use'
. Further the prevailing policy of the Corporation did not include uses such as

Retigious plots. Service industry plots, godown and warehousing plots'


o In order to avoid reference to multiple policies on the same subject, to include all
l permissible users and to provide more clarity to the existing policy for better
implementation of the same, it now proposed to review and revise the prevailing
policy and prepare a consolidated policy to determine the rates of Additional
Lease Premium for grant of additional FSI for various types of Users and for
Change of User.

C) Nature of Approval :

Appraisal Allotment Administrative Financial Policy Other


note approval approval (please
specify)

Page I of 14

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D) Details of proposah

1. Background:
o As per the New Bombay Disposal of Lands Regulation !975, as amended vide
The Navi Mumbai Disposal of Lands (Amendment) Regulations, 2008 (NMDLR
2008) the Use and FSI for every lease is specified. As per the Regulation 11 (vi) of
NMDLR 2008 - User of Land and consumable FSI- Eztery lease shall specifu user

and FSI permitted to the danised premises, which shall not be changed/ increaseil

zoithout the pior zttitten permission of the Corporation and zoithout the payment of
prescibed additional premium and other charges.
^(. . Accordingly the Corporation has framed the policy for grant of additional FSI
and Change of User for various users from time to time. The BR No. 1075 daied
15.03.2013 is the prevailing poliry in this regard. Refer Annexure I

2. Reasone for review of BR N o. 1O775 dated 16.03.2013:


a) The BR No 1075 had provision for grant of Additional and Residual FSI for

following categories:
i. Residual FSI for CIDCO conshucted buildings.
ii. Plots allotted for R, R+C, Hotel, IT and Commercial Use.
iii. Open plots or plots with school building allotted for all types of
educational use.
,..o iv. Open plots or plots with Hospital Building allotted for Health Use'
v'InstitutionalbuildingsofGovtorpublicAuthoritiesorCharitable
Trusts
vi. Plots allotted to Central or State Govt and their fr:Ily owned
Undertakings
vii. Starred cateSory Residential Hotels
viii.Information Technology land use in any Zone, other than RPZ'
b) The BR No 10775 had no provision for permitting change of user, for certain
permissible change of user under the provision of DCRs of the respective
PlanningAuthorities,namelyforReligiousplots,Serviceindustryplots'godown
and warehousing plots.

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In case of warehousing plots, the Govt. vide its notification no TPB-


4320o7 / 7785 / CR-107/2004-UD-II dated 27.05.NM modified the provisiorrs
under 14.4.4(BB) and permitted mercantile land use within the warehousing
Zone. Accordingly the Board vide BR No 9381 dated 10.02.2006 approved the
broad policy framework for permitting mercantile use in the Warehousing Zone
at Vashi. Refer Annexure II. However the said policy, was not included in the
BR No 10775 dated 16.03.2013.

c) Further the BR No 10775 has a separate provision for Institutional buildings of


Govt. or Public Authorities or Charitable Trusts. This is a conflicting provision if
the use is also considered. For example pt. 4 of Annexure A of the said BR
specifies a rate of 50% of Base Price for Health plots but pt. 5 specifies a rate of

35o/o fot Registered Charitable Trusts for medical use. In order to remove such
ambiguities, it is now proposed to PrePare the policy on the basis of existing and
proposed use only and not on the type of legal entity of the Licensee.
d) The Govt. vide its Directives dated 14.03.2076 has approved a policy for grant of
additional FSI for Education, Health and Hotel use which is based on Ready
Reckoner Rates and specifies sharing of revenue with the Govt. Refer Annexure
III. The details of rates as aPPlicable for Navi Mumbai are briefly as follows:

Sr. Type of user Premium as o/" of


No. Ready Reckoner rates
--o 1 Educational:
20%
a) Primary School, Secondary School
b) College/ Educationalinstitutes 30y,
c) Special Educational Institutes for 10%
phvsicallv handicapped/ mentally ill.
2 Medical:
a) Hospitals, Matemity 30%
b) Private Medical Institutions 40v.
3 Commercial:
a) 2 to 4 Starred Category Hotels 40%
b) 5 Starred CategorY Hotels 50%

The said policy also specifies various special conditions for the grant of such
additional FSI namely specifying free treatment and number of beds for
Page 3 of l4

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economical weaker sections etc in case of hospitals, reservation of seats for


admissions, free/ concessional education in case of educational instifutions.
Further the monitoring of these conditions by such institutions is the
responsibility of the Director of Health Services and Director of School
Education, Higher and Technical Education respectively.
As per these directives, out of the total premium, 50% of the amount is to be paid
to the Govemment and balance 50% shall be paid to the respective Authorities.
e) In case of grant of additional FSI for IT/ITes use, the prevailing poliry is the
Govt Resolution dated 15.07.2016. This policy is based on Ready Reckoner Rates
and specifies sharing of revenue with the Govt Refer Annexure IV. As per this
policy, the rate is 30% of Ready Reckoner rate for Navi lvlumbai. The sharing
percentage is 50% befween the Planning Authority and 50% with Govemment.

Regarding Religious plots, the Board note in respect of BR No 10775 mentions


that 50% additional FSI is permissible on religious plots, however the same was
inadvertently not included in the Annexure attached to the Board note approved
by the Board. Subsequently vide BR No 11361 dated 19.05.2015, the Board
approved Policy guidelines for grant of additional FSI to Educational, Medical,
Institutional and Religious buildings as per Regulation no 16.3(1a) C of GDCR.
However the rate of premium was not specified. Refer Annexure V. As per the

,-f| provisions of the CIDCO GDCR 1995, 50% additional FSI is permissible for
religious user plots. The rate prescribed is 25o/o of the Ready Reckoner rate of the
respective year, out of which premium shall be paid 50% to the Govenrment and
remaining 50% to CIDCO or concemed Planning Authority. Refer Annexure VI.
g) The Corporation has a policy vide BR No 7632 dated 29.L1'.97 regarding
expansion of user. Refer Annexure VII. The salient features of this policy are as

follows:
i. If the expanded use is more or less of the same type which has already

been permitted, then Administrative Charges of Rs. 500/- per sqm of the
built up space/land area on which such expanded use is to be Permitted.

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ll. If the expansion of User of a totally different type of usage is to be


allowed, then the additional Lease premium is proposed to be the
maximum of the amount calculated by the following three methods:
o Lease Premium at the rate applicable to the highest user for the
relevant FSI under the Pricing Policy in force for the time being minus
the lease premium at the rate applicable as per the pricing policy in
force for the time being for the allotted user.
o Lease Premium at the rate applicable to the highest user for the
relevant FSI under the pricing policy in force for the time being minus
^,_l\ original Lease Premium paid by the Lessee and escalated at a
comporrnd nE of 72% per annum for the period from the date of
Agreement till the date of application for permitting the expansion of
use.
. Administrative charges leviable i.e. Rs. 500 per sqm of the buildable
area for which the change of user is sought.
In cases Licensee has changed the use without prior approval of the
Corporation, the charges shall be 150% of that charged for regular cases.
Such cases shall be considered by declaring an Amnesty Scherrre.
lv. Provision for charging 725o/o of the applicable rate if the proposed end
,-O user is Hotel.
h) Regarding CIDCO constructed dilapidated buildings, the Govt. vide GR dated
M.O2.2O75 approved a policy for grant of additional FSI upto max 2.5, wherein
there is no provision for recovery of additional Lease Premium, but a sharing of

built up premises with the Corporation. The Board vide BR No 12124 dated
21.07.2079, has resolved to (i) Deleting provision for CIDCO to act as developer,

(ii) replacement of minimum 300 sqft carpet area provisions, (;iii) amending the
word rate of construction to cost of construction, (iv) making CIDCOs share in
the form of premium instead of BUA and (v) other incidental changes as
mentioned in regulation 34. The Board has resolve to initiate the procedure

/{nU-- Page 5 of 14

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under section 37(1) of the MRTP Act 7966 for amendment to GDCR of CIDCO in
Regulation 34 and corresponding Appendix VII. Ref Annexure IX.
i) ln view of the above, it is necessary to prepare a consolidated policy for gant of
Change of user and grant of additional FSI for various types of plots.

Methodology adopted for Revised Policy:


a) The Navi Mumbai Municipal Corporation and the Panvel City Municipal
Corporation are the Planning Authorities in their respective jurisdiction. The
Corporation is still performing the dual role of New Town Development
Authority and Planning Authority for the areas such as Ulwe and Dronagiri
Node. Hence within the jurisdiction of NMMC and PCMC, the decision whether
the said additional FSI and/or Change of user is permissible or otherwise shall
be taken by the respective Planning Authorities, and the role of CIDCO shall be
that of a Lessor to grant the No Objection Certificate (NOC) by recovering the
Additional Lease Premium for permitting such Additional FSI and/ or Change of
Use in terms of the Regulation 11(vi) of NMDLR 2008.

b) It is proposed that for Religious, Education, Health, Hotel and IT/ ITes use, the

rates applicable shall be as per the prevailing policies of the Govt. of Maharashtra

or as per DCR in case of religious use and as amended from time to time and the
same shall be removed from the CIDCO policy to avoid conflicting provisions.

c) The User excluded in the earlier policy like Service industry plots, godown and
warehousing plots shall be added.
d) In case of change of user having higher Base Price to use having lower Base Price
or for similar or compatible use, it is proposed to levy administrative charges by
appreciating the charges of Rs' 500 Per sqm fixed vide BR No 7632 dated
29.11.7997 at the rate of 10% Per annum. This works out to Rs' 1()70 per sqm upto

March 2020. It is ProPosed to consider Rs. 4500 Per sqm as Adminiskative

Charges.
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e) Regarding the applicable rate for conversion from Residential to Residential plus
Commercial use, the Pubic Undertaking Committee (PUC) in respect of para
2.7.27 n the XVIIIIh (2077-78\ Report for the year 2Ol7-72, recommended that
CIDCO should review its policy for grant of change of user from Residential to
Residential plus Commercial use. Accordingly the same was examined by an
internal Committee and submitted to the Board. The Board vide BR No 12152
dated 18.02.2019 has resolved to retain the rates as per the BR No 10775 dated
16.03.2013. Accordingly the decision of the Board was communicated to the
Govt. The BR No 10775 has two rates (i) 100% Base Price for plots abutting 20m
/',1\
I w'ide roads and above and (ii) 75% of Base Price for plots abutting road width of
20m or less. This rate was applicable on the additional 0.5 FSI area.
It is proposed to simPlify the said calculation and charge a flat rate of 100% of
Base Price for plots irrespective of road width. This works out to 225% of Reserve
Price of the relevant Node to be levied on the plot area.
Regarding Change of User from Commercial to Residential plus Commercial, the
Base Price for both users is 450o/. of RP. Hence for such Change of user, it is
suggested to recover Rs. 4500/- Per sqm Administrative Charges on the entire
plot area.
g) Regarding the rate for change o( user from Service Industry/ Godown having 0'5
FSI or VPR 2.0 to Commercial user with 1.5 FSI, is approved vide BR No 9381
^.fl dated 10.02.2006, however while factoring the premium paid by the Licensee, the
rate already paid is deducted. This method becomes unviable if the date of
allotrnent is many years before the date of change of user. In order to factor the
premiumpaidfortheearlieruserinarealisticnvulnef,itissuggestedthat
differential Base Price at Prevailing Reserve Price should be recovered'
Accordingly for permifting change of user from Service Industry/ Godown
(Base

price 150% of RP) to C (Base Price 45Oo/" of RP) it is recommended, that (450% -

150%)=300%ofprevailingReservePriceofrespectiveNodetobeleviedonplot
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area should be recovered. In case any user desires to avail only 1.0 additional FSI

then the same shall be reduced proportionately.


h) In case of change of user from Warehousing plots with VPR 4.0 to Commercial

user, it is proposed to charge the same rate as applicable for Service Industry
plots.
It is proposed to retain the provision for change of user into Hotel as per BR No
7632, i.e.125% of rate applicable for other change of user categories.

In cases where the Licensee has already changed the use without approval of the

^n Corporation, but the same is permissible as per the DCR of the concemed
Planning Authority, the para 1.1 and 12 of the Board note of BR No 7632 mentions
- " ln cax an unauthoized use has been madz zoithout thc pior zoitten permission of the

Corporation, the charges shtll be 750% of that determined as in parc (70) abooe." lt is
proposed to enhance this rate to 2C0%. The Board vide BR No 7632 specifies
declaring an Amnesty Scheme for such cases. It is proposed to retain this part
resolution of BR No 7632.
k) With a view to have more clarity and simplification of calculation of Additional
Lease Premium, it is proposed to clearly specify the rate in terms of percentage of
Reserve Price or Administrative Charges for various scenarios of change of user
as well as additional FSI on total plot area.
The rates shall be specified on the basis of existing and proposed user only and
^aI not for type of legal entity [ke Govt./ Public Authority or Charitable Trust etc, to
avoid duplication.

Proposed Policy for grant of additional FSI and/or grant of Change of Ueer:
The proposed Policy is as follows:
a) Permissibiliw of additional FSI and/or Change of User shall be decided by thq

concemed Planning Authoritv: The applications for grant of additional FSI and/
or Change of User shall be processed by the Estate Dept. only after receipt of a
letter from the respective Planning Authority clearly stating that the said Change

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of user / additional FSI is permissible on the subject plot as per the respective
DCR provisiorrs.
b) In case of grant of additional FSI for Education, Health and Hotel use. the rates
applicable shall be as per the Govt. Directives dated 14.03.2016 and as amended
from time to time. Further it is clarified that in case of Composite School plots
allotted by the Corporation, wherein fr Cotlege is also functioning as of date,
then in such case, for grant of additional FSI, the rate of 2Oo/o shall be considered,
whereas for all other plots allotted for College use, a rate of 30% shall be charged.
c) In case of grant of additional FSI for IT / ITes elots: The policy dated 15.07.2016
^ ill has a provision - "In case of the Navi Mumbai Notified Area, the CIDCO as land
owner may recover lease premium for additional FSI if applicable under Land
Disposal Policy of CIDCO." However it is proposed that the rates applicable
shall be as per the prevailing policy of the Govt. of Maharashtra dated 15.07.2015
and as amended from time to time.
d) ln case of Eant of additional FSI for religious plots, the premium shall be
recovered at rates specified in the Govt. Resolutions in this regard nr the DCRs of
the respective Planning Authorities and as amended from time to time.
e) ln respect of following cases, the rate for additional Lease premium for
additional FSI and/or Change of User shall be as follows:
Sr. Existing Use and Proposed Use Applicable Rate
,^aO No. FSI and FSI
A B C D
1 Residential Residential plus 225% of prevailing Reserve
including Society Commercial with Price to be levied on the entire
plots but increase of FSI plot area.
excluding from 1.0 to 1.5
bunglow plots
with 1.0 FSI.
2 Comrnercial with Commercial or 225o/o of prevailing Reserve
1.0 FSI Residential plus Price to be levied on the entire
Commercial with plot area.
increase of FSI
from 1-0 to 1.5

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Sr. Existing Use and Proposed Use Applicable Rate


No. FSI and FSI
A B C D
3 Residential plus Commercial with Rs. 4500/ - per sqm
Commercial with 1.5 FSI Administrative Charges to be
1.5 FSI levied on the entire plot area.
4 Commercial with Residential plus Rs. 4500/- per sqm
1.0 or 1.5 FSI/ Commercial with Administrative Charges to be
Hotel same FSI. levied on the entire plot area.
5 Service Industry, Comrnercial with 150% of prevailing Reserve
Godown 1.0 FSI price to be levied on the entire
including LPG plot area.
Godown with 0.5 Commercial with 300% of prevailing Reserve
^4\ FSI or VPR 2.0 1.5 FSI price to be levied on the entire
plot area.
6 Storage/Cold Commercial with 150% of prevailing Reserve
Storage/ 1.0 FSI price to be levied on the entire
Warehousing plot area.
with VPR 4.0 Commercial with 300% of prevailing Reserve
1.5 FSI price to be levied on the entire
plot area.
7 Petrol P*p/ Electric Charging Rs. 500/- per sqm
CNG Stations/ Stations Administrative Charges to be
Public Parking levied on the plot area
Lot/ Commercial considered for conversion.
Complex/
Housing Society

f) For all other cases not included above, for change of user from Lower to
^.rT Hiqher use, with or without additional FSI, which are permissible as per the
DCRs of the concerned Planning Authority, the guiding principle for
calculation of the additional Lease Premium shall be the differential Base

PriceworkedoutatPrevailingrateofReservePriceoftheresPectiveNode
g)IncaseofchangeofUserhavingHigherBasePricetoLowerBasePriceorfor
similar or compatible use, the same shall be permitted on recovery of
Administrative Charges of Rs. 4500 per sqm on Plot area'

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h) Change of User to Hotel: In case of Sr. No 2 to 6, if the proposed user in


Column C is Hotel then the rate applicable shall be 125% of rate mentioned in
Column D.
i) Administrative charges for Social Facilitv plots: In case of Social Facility plots
where change of use is permitted as per the BR No 12085 dated 08.05.2018.
Refer Annexure VIII. It is proposed that such change of use shall be
permitted on recovery of Administrative Charges of Rs. 1500 per sqm. on plot
,rrea.

il BeguhdzaEg!--sa9cs In cases where the Licensee has changed the use


^/1\ without approval of the Corporation, and the same is permissible as per the
DCR of the concemed Planning Authority, such change of user shall be
regularized on payment of penalty of 200o/o of the rate as fixed in the
respective para above. In case the use is changed to Hotel without approval of
the Corporation, the factor ol 200o/o shall be applied after enhancing the rate
as per para 4(h) above. It is proposed to advertise an Amnesty Scheme for
regularization cases. The validity of the Amnesty scheme shall be for a period
of one year.
k) Competent ArrthoriW for granting approvals: For all cases under the par.a 4(f),
4(g) and aO, the VC&MD shall be the Competent Authority to grant
t1\ approval. For all other cases, the approvals shall be granted as per the
prevailing Delegation of Powers.
l) Additional FSI shall be granted to the extent of min 0.5 FSI at a time, except in
cases where FSI consumption is restricted due to height restriction or any

such statutory provisions.


m) Time limit for completion of building in respect of additional FEI: The time
limit for completion of the additional FSI shall be 2 years for 0.5 or less FSI
and 4 years for FSI more than 0.5 irrespective of plot area and in case the said
additional FSI is not consumed within the stipulated period then further

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additional Lease premium towards extension in time shall be levied as per
the prevailing policy for grant of extension in construction period.

n) Additional Lease premium towards location advantage shall not be added for
grant of additional FSI cases.
o) Plots allotted for APMC and Steel Warehousing shall not be granted change
of Use, as these plots are part of statutory shifting of wholesale markets to
Navi Mumbai. Additionally marble market plots shall also not be granted
Change of Use

P) Change of User shall not be permitted for plots allofted for petrol/ CNG
^nn pump (except for Electric Charging Station), Printing press, public Utility,
Hostels, Social (except those specified in BR No 12035), Educational and
Health use.

Decision in respect of sharing of revenue in respect of rates determined by


Government Resolution:

The Government of Maharashtra, in exercise of the powers under Sub-section 3A


of Section 113 of the MRTP, appointed CIDCO as the "New Town Development
Authority" for Navi Mumbai witi a view to create a new town in a planned
manner so as to decongest Mumbai. CIDCO, being the New Town Development
Authority, has the power and authority to dispose of the developed lands on
lease within the notified area of Navi Mumbai in exercise of the porvers under
Section 118 of the MRTP.
CIDCO, in exercise of the powers under Section 118, read with Section 159 of the
MRTP, has framed the rules and regulations for disposal of the lands with the
previous approval of the Governmen! which was popularly known as 'New
Bombay Disposal of Lands Regulations 1975'. These Regulations were
subsequently amended and are now known as the 'Navi Mumbai Disposal of

flts
Lands (Amendment) Regulations, 2008'.

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The revenue generated from the disposal of lands, change of user and grant of
additional FSI etc is utilized for the development of the new city.
As per the Regulation 11 (vi) of NMDLR 2008 - User of Land and consumable
FSI:- Eoery lease shall specify uxr and FSI permitted to thc demixd premixs, which

shall not be changed/ increased without the pior Tlitten Wmtission of thz Corporation
and uithout the payment of yescibed additional premium and other charges.

Accordingly the Corporation has framed the policy for Change of User and grant
of additional FSI for various users from time to time.
However in case of the Govemment Resolutions in respect of grant of additional
^{\ FSI, there is a provision for sharing of revenue between the Government and the

Planning Authority. As a result the Corporation inspite of having the powers to


levy additional Lease Premium being Lessor of the said lands, is adversely
affected. In order to overcome this situation, it is proposed to send a request to
the Govemment that the share of the Govt. may be retained by CIDCO, being
Lcssor of the lands on behalf of the Govt. It is proposed to seek approval from
the Govemment regarding the same.

6. Propoeal:
The Board of Directors is requested to aPprove the consolidated policy for gtant of

rT\ additional FSI and Change of User as mentioned in para 4 of the Board note. The
Board is also requested to pass suitable resolution in respect of sharing of premium
as brought out in para 5 of the Board note.

D) Financial Implication: As proposed above


E) LegalRequirementy'Implicationsfrovisions:Nil
F) Date of Approval of the Agenda Note by the VC & MD: 05.02.2020
G) Whether continuation of Deferred item/ot Fresh Item: Fresh item.
H) Whether to provide the Board Note and Eoard resolution under RTI Act, 2005 -
Yes

floL> pase13or.14

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DRAFT RESOLUTION:

VED THAT, the Board do and hereby approve policy for grant of
of User and grant of additional FSI as proposed in 4 of the Agenda
Note".

"RESOL FURTHER THAT, all the earlier Board Resoluhons respect of grant
of Change User and grant of additional FSI shall stand by the present

^t Board Resol

"RESOLVED THAT, thE hereby authorise the to


request to the to grant of
additional FSI for and religious use to
proviso that the of the Govt. by CIDCO, being
lands on behalf of the

"RESOLVED FURTHER T, the Board do and hereby authorize the V


Jt. MD-r/It. MD-rr/ M(TS-II)/M(T9III) to implement the above resolution".

(ltQt^"^'
Initiated by : Signature :-\
Name : Faiyaz ffhan
Designation : ManagLr (Town Services-l)
1n

?
.r)

Page l4 of l4
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Item No.9/624 BM :

A consolidated policy to determine the rates of Additional


LeasePremiumforgrantofAdditionalFsland/orChangeof
use for various tYPes of Users.

After discussions, the Board unanimouslY Passed the

following Resolution: -

RESOLUTION NO: t2299

"RESOLVED THAT the Board do and hereby approve the


policy

for grant of Change of User and grant of additional FSi as


proposed in Para-4 of the Agenda Note with following additional
condition :-
(a)Thattheadministrativechargesforelectricchargingstation
[as proposed in Sl.No.7 of Para 4 (e)] shall
be free for
stations executed during initial Three years [i'e' Till 31't
I

March, 20231.
per
(b) That the additional FSI and/or change of user shall be as
permissibility criteria of existing Zone use'

"RESOLVED FURTHER THAT all the earlier Board Resolutions in


respectofgrantofChangeofUserandgrantofadditionalFSl
stand superseded by the present Board Resolution"' '6N
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F*
hereby authorize
,li + P.
soLvED FURTHER THAT the Board do and
the vc&MD to request to the Government
to amend the Govt'
in respect of grant of additional FSI for
Education'
Resolutions
Hotel, IT/ITes and religious use to include a proviso that
Health,
by clDco, being Lessor
the share of the Govt. shall be retained
the lands on behalf of the Govt"'
do and hereby authorize
RESOLVED FURTHER THAT the Board
the VC&MD/lt.MD/M(TS)iSSO to
implement above the
Resolutions."

%ResolutionNo'
Passed bY the Board
v
i 2 z{>-cf Bourri urxtiugheldon

Curcpp-iiY Secretar
EstP' No. 34023

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