Over 80 Redevelopment Projects Stalled in Vasai-Virar Over FSI Violations

More than 80 redevelopment projects in the Vasai-Virar Municipal Corporation (VVCMC) area have come to a standstill after the civic body imposed restrictions on building permits, leaving residents, homebuyers, and investors in a difficult position.

According to reports, the VVCMC administration has stopped issuing occupancy certificates (OCs) and halted document registration for buildings where additional Floor Space Index (FSI) was found to have been approved in violation of regulations.

The affected projects were approved between 2020 and 2025. A civic body review found that additional construction area had been sanctioned in these projects without following due process. As a result, the corporation has:

• Halted additional construction on the flagged projects
• Written to the district registrar, requesting that registration of sale agreements for flats and shops in these projects be stopped

Impact on Residents and Investors

The restrictions have raised serious concerns for everyone connected to these projects:

• Residents had vacated their original homes after developers secured municipal approvals, construction commencement certificates, and MahaRERA registration.
• Homebuyers invested in these projects after all the above approvals were in place.
• Banks — both nationalized and cooperative — extended loans for many of these projects.

With registrations and OCs now on hold, the financial exposure for all these stakeholders is reportedly running into thousands of crores of rupees.

Political Reaction

BJP MLA Rajan Naik has raised the issue, calling it a matter of serious concern for ordinary citizens, and has sought the intervention of Chief Minister Devendra Fadnavis. His key demands include:

1. A special review committee, headed by senior officials of the Urban Development Department, to examine each affected project individually and decide on a case-by-case basis.
2. A regularization option for projects with technical or procedural flaws — allowing them to be regularized through payment of a premium or via the TDR (Transferable Development Rights) mechanism.
3. Accountability measures — separate action against officials, architects, and developers found responsible for the rule violations.
4. Immediate stay on restrictions imposed after the civic review, warning that continued restrictions could adversely affect a large number of residents and stakeholders.