Developers Pay Regularisation Charges After BMC Issues Stop-Work Notice

The Brihanmumbai Municipal Corporation (BMC) has collected Rs 1.47 crore in regularisation charges from developer YM Systems after issuing a stop-work notice for unauthorized construction beyond the permitted floors at its Motibhai Street, Agripada project. The notice, issued by BMC’s E-ward on January 7, stated that construction beyond the 20th floor up to the 23rd floor was carried out without valid permissions.

A similar case occurred last August when BMC halted work on the Piramal Aranya project by Glider Buildcon Realtors in Byculla. The developer had constructed up to the 46th floor despite the commencement certificate (CC) permitting only up to the 26th floor. Following the notice, the developer sought regularisation and paid Rs 7 crore to the civic body.

According to Piramal Realty, the payment was made to comply with regulatory norms and ensure smooth project execution, highlighting that such regularisation is not uncommon in the real estate sector.

These actions by BMC followed complaints from activist Santosh Daundkar. Former IPS officer turned lawyer YP Singh remarked that development control regulations mandate approvals based on the full Floor Space Index (FSI), and adding additional floors using Transfer of Development Rights (TDR) without proper re-evaluation is not a sound practice. He also pointed out that such expansions require fresh environmental appraisals, and the Supreme Court has previously criticized this approach.

Singh further emphasized that issuing stop-work notices and later regularising projects without restarting the approval process contradicts legal procedures. Once a stop-work notice is issued, all prior concessions should be withdrawn, and the approval process must restart to ensure compliance with town planning laws.

The issue of unauthorized construction and subsequent regularisation remains a contentious subject in Mumbai’s real estate sector, raising concerns about regulatory oversight and environmental impact.

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