Customs Enclave Wadala Project |
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| Requisite Exemptions/Relaxations | Existing Provisions/REMARKS |
| Premium Waiver on additional FSI for Govt office space (State Government/MCGM already exempted) [EP73 – DCPR 33(3)] | Zonal FSI is 1.33 for Mumbai Island City. As per Reg. 33(3) of DCPR 2034, the Commissioner, by special permission, may permit FSI upto 5.0 for Govt. offices on payment of premium on additional FSI. State Government/MCGM are categorically exempted from payment of such premium. |
| Premium waiver on additional FSI for Govt Staff Residence (State Government/MCGM exempted) [EP 74-DCPR 33(3)(A)(1)] | Zonal FSI is 1.33 for Mumbai Island City. As per Reg. 33(3)(A)(1) of DCPR 2034, the Commissioner, by special permission, may permit FSI upto 4.0 for construction of staff quarters for the employees of Govt. on payment of premium on additional FSI. State Government/MCGM are categorically exempted from payment of such premium. |
| Premium waiver on Fungible Compensatory Area (State Government/MCGM already exempted) [EP74- DCPR 33(3)(4)(i)] | No premium shall be charged for fungible FSI compensatory area
admissible as per DCR 31(3) for construction of staff quarters of MCGM & State Government. |
| Premium waiver on Staircase, Lift & Lift Lobby (State Government/MCGM already exempted) [EP74- DCPR 33(3)(4)(ii)] | No premium shall be payable for stair case, lift and lift lobby for the construction of staff quarters of MCGM & State Government. |
| Exemption from Development cess @ 7% of land rate of BUA beyond basic zonal FSI over and above the development charges [EP74- DCPR 33(3)(A)3] | The Development Cess is imposed in addition to the Development charges levied as per section 124 of MR&TP Act, 1966. The said MRTP Act exempts the central govt from paying any development charges. On the same line exemption from Development cess should also be applicable. |
| Adjustment of 10% ROS/EOS 1.5 & ROS 1.5 against proposed school, hospital & already given land for freeway and Anik-Wadala Road. [EP24-DCPR 14A(ii)] | A school and hospital for public use is already planned in the project as public amenity. The spaces dedicated to them can be accounted for the requirement of reserved spaces. |
| Permissible FSI to be reckoned on Gross Plot Area. [EP56- DCPR 30(A)2] | For staff quarters, FSI is already specifically permitted on gross plot area, but for govt. office no specific exemption is given. |
| Vetting of assumptions accounted in our project for sale of upto 1/3rd of Office/Commercial space for cost recovery on the similar lines with provisions of EP74- DCPR 33(3)(A)2(ii) that provides for 1/3rd sale of Residential Space. | The DCPR provisions do not prevent the sale of 1/3rd of office/commerical space and is silent on the above. In view of keeping up the viability of this self-sustained government project, on the similar lines with provisions for residential spaces, our office has conservatively provisioned for 1/3rd sale of office/commercial space. |
| Doing away with ROS 1.5 in Smaller Plot (F/N-68) | Newly Introduced reservation on smaller plot may be done away with. The department has already lost 11.53 acres towards Roads snd also ready to comply with 10% obligatory Space |
Arguments in Support of Waivers/Exemptions Sought
(A) The Hon’ble Supreme Court in the case of Vadodara Municipal Corporation vs Union of India (C.A 6706 of 2004 ) has held that distinction between States and Union Government cannot be made in matters for payment of property taxes/ premium / service charge etc. and exemptions/ concessions granted to properties belonging to State government shall apply to properties of Union of India (P-11(V) of the order refers). The same has been further clarified by the Ministry of Urban Affairs and Poverty Alleviation to the effect of parity being maintained between the Union and State Govts. (ref. F.No. N-11025/26/2003-UCD dated 17.12.2009 clause 5).
(B) In our Project at Wadala plot, staff quarters of the multiple central govt. deptts. viz. Customs, CGST, Income tax, ED are proposed to be housed in the premises. All above departments are concerned with the primary sovereign responsibility of a “nation-state” including tax collection and preventing money laundering. Charging premium on additional FSI, Fungible compensatory area, Staircase, Lift & Lift Lobby for construction of office spaces for these departments may thus not be appropriate as the said government organizations are paramount to nation’s growth and development. Necessary waivers would thus be critical as any premium charged will have a deleterious impact on the viability of our self financed project.
(C) The saleable portion is being constructed only to finance the government portion & if any premium is charged even on saleable portion, then the project viability will be under question.
(D) Section 285 of the Constitution of India 1949 regarding Exemption of property of the Union from State taxation is reproduced as under:
(1) The property of the Union shall, save in so far as Parliament may by law otherwise provide, be exempt from all taxes imposed by a State or by any authority within a State. (2) Nothing in clause ( 1 ) shall, until Parliament by law otherwise provides, prevent any authority within a State from levying any tax on any property.
(E) Treating Central Govt in the line of PSUs, for imposing premiums etc. does not sound justified. Major reason being that, PSUs stand for profit making in their endeavor while, the Govts. State or Central are only welfaring in approach and intent in any of their endeavors. Their aim is not to book profit instead saving on any of their endeavor help them to expand into other welfare measures.
(F)The discriminatory approach towards Centre by State in imposing premium /Taxes is in contravention to the spirit of co-operative federalism enshrined in the Constitution of India.
EDIT: As per Latest Discussions with UD Officials on Jan 30th 2019
- EOS in F/N-41 & 42 was changed by DDTP to DOS1.5 which as per UD was more difficult to remove so it was assured to changed to ROS1.5. It was told that this ROS1.5 would be adjusted against ROS requirement within obligatory AOS.
- ROS1.5 in F/N 68 was assured to be done away with
- ROS1.5 & AOS are also eligible for compensatory TDR if the land is handed over to State.
- As development charges are waived under MRTP act section 124, the development Cess would be automatically waived
- The Development Cess was initially imposed for pool of Metro Project
- Deficit of 1.20 acre observed in Land station survey is eligible for Compensatory FSI, 2.5 times of land area
- Construction of Amenity at project owner’s end is possible after due consultaion with Ciommissioner MCGM
- Idea of levying premium on Central Govt. project was insisted by MCGM Commissioner, PS/ UD was not of the opinion. Apparently, legality was made sure of.
- Notification in respect of exemptions from Land reservation was assured to follow shortly.