Maha Govt Modifies Rules of Cluster Development Scheme; Projects Now Permitted on Narrower Roads

Maha Govt Modifies Rules of Cluster Development Scheme; Projects Now Permitted on Narrower Roads

The Maharashtra Urban Development Department (UDD) issued a notification on Wednesday which allows the Mumbai Civic Commissioner to permit Cluster Development Scheme (CDS) projects even in regions that have roads of less than 12 metres or 40 feet in width. This comes as the existing CDS regulations permit CDS projects only on roads that are at least 18.3 metres or 60 feet wide. 

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The government has decided to give more liberty to the developers with regard to the properties they can redevelop in the suburbs and other parts of the city. The CDS was put in place around a decade ago to help redevelop dilapidated buildings. By modifying one key aspect of the scheme, the government has effectively allowed redevelopment on narrower roads.

Further, the government is also increasing sale incentives for developers who undertake such projects. Reports say that sale incentives have been increased by nearly 30% while some regulations and planning norms have also been relaxed along with the construction premiums. 

As per the rules of CDS, real estate developers can redevelop old buildings and structures that are spread over a minimum area of 4,000 square metres if in Mumbai and a minimum area of 6,000 sq metres for buildings in the suburbs. 

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It’s worth pointing out that the government is yet to approve the plans to make the changes to CDS, and is also looking for suggestions or recommendations from the public. As per senior sources quoted by the Indian Express, the implementation of these modified rules will benefit at least one leading real estate firm in the city which is currently managing multiple CDS projects.

Meanwhile, the government is also allowing existing CDS developers to migrate to the new policy. Current rules state that CDS development can only be done for buildings that are dilapidated and over 30 years old. 

However, the modified rules will allow the redevelopment of buildings that have already been reconstructed by the Maharashtra Housing and Area Development Authority (MHADA) in the past. In many cases, such buildings are less than 30 years old. 

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