Subodh Kumar’s decision to charge an additional amount on the construction of certain sections of the building can push up the property price in the city by 20 to 30 %.
Subodh Kumar has put forth a proposal before the state government that the Brihanmumbai Municipal Corporation charge a premium of 100 per cent of the ready reckoner rates on construction of lobbies, terraces and balconies compared to the 25 per cent charged earlier.
Ready reckoner rates are the rate at which the government calculates the market value of the property. Though these specified areas are free from calculation of floor space index (FSI) -- permissible construction.
The proposal is expected to help BMC to earn extra revenues in the form of additional premium.
Developers, however say that it could raise prices. "If the premium is increased, their yields will come down by 20 to 30 per cent and costs would go up.
Source: http://www.rediff.com/business
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