MUMBAI: In a significant step, leading developers and architects from organizations like CREDAI-MCHI, NAREDCO, BDA, and PEATA met with municipal commissioner Bhushan Gagrani on Friday. They addressed challenges hindering the real estate sector. The civic chief announced the establishment of a steering committee that will include representatives from these organizations and BMC officers from various departments. This committee will convene bi-weekly to tackle sector-related issues.
As per a press release, meetings will be led by Chandrashekhar Undage, the deputy chief engineer in the commissioner’s office. “The commissioner has assured us of his attendance at these meetings monthly. This setup will facilitate the regular tracking, implementation, and review of critical decisions and recommendations,” the press note stated.
One of the main recommendations was to streamline the premium payment schedule to a 10:10:80 structure: 10% paid upon approval, another 10% at the Commencement Certificate (CC) stage, and the remaining 80% at the Occupation Certificate (OC) stage. Currently, developers are obliged to pay various premiums upfront or through deferred schemes with a 12% interest rate.
“Since these payments are typically required at early development stages, they impose a heavy financial burden before any revenue is realized. The proposed structure seeks to align payments with project cash flows, making them more viable and sustainable while maintaining civic revenue,” developers indicated. Sukhraj Nahar, President of CREDAI-MCHI, remarked that this joint representation aims to foster “constructive engagement” with municipal administration. “We intend to collaborate with the BMC to create structured mechanisms that ensure regular dialogue, timely issue resolution, and enhanced transparency. The suggested 10:10:80 premium payment model is balanced and practical, aligning payment timelines with actual project progress and ensuring a revenue-neutral approach for the administration,” said Nahar.
Rushi Mehta, Secretary of CREDAI-MCHI, emphasized the importance of such joint initiatives as a pivotal shift towards collective problem-solving. “The real estate sector is a vital growth engine for Mumbai, and ongoing interaction with civic authorities is essential to unlock its full potential,” he stated.
Municipal commissioner Bhushan Gagrani told TOI, “Indeed, we have agreed to form this committee to implement EODB 2 (Ease of Doing Business 2). As discussed with the Chief Minister, we are working to integrate AI into plan approvals to minimize subjectivity as much as possible.”
