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In a significant move to enhance coordination between Mumbai's municipal administration and the real estate industry, leading associations including CREDAI-MCHI, NAREDCO, BDA, and PEATA held an extensive meeting with Municipal Commissioner Bhushan Gagrani. The discussion focused on addressing procedural hurdles and policy reforms, resulting in the announcement of a Real Estate Steering Committee to ensure regular engagement, faster decision-making, and transparent governance to bolster the city's development ecosystem.
In a key development for Mumbai's real estate sector, representatives from CREDAI-MCHI, NAREDCO, BDA, and PEATA convened a joint meeting with Municipal Commissioner Bhushan Gagrani and his team earlier this week. The session, initiated by CREDAI-MCHI President Sukhraj Nahar and Secretary Rushi Mehta, focused on policy issues and procedural bottlenecks impacting the city's development landscape. Advertisement
Municipal Commissioner Bhushan Gagrani announced the formation of a Real Estate Steering Committee to strengthen collaboration between the municipal administration and the developer community. The committee will include members from major industry bodies along with officials from key departments of the Municipal Corporation of Greater Mumbai (MCGM), including the fire department. The committee is expected to meet fortnightly to deliberate on pressing issues, policy reforms, and sectoral opportunities, with Deputy Chief Engineer Chandrashekhar Undge serving as chair. Gagrani also assured that he would personally attend the meetings every month to review progress and ensure that recommendations are implemented effectively.
Gagrani appreciated the industry's collaborative approach and assured full administrative cooperation from the MCGM. He emphasised that as long as the industry's demands contribute to the larger public interest, the municipal administration would support such initiatives. He further pledged to help remove bureaucratic obstacles and streamline the approval and development processes to unlock the sector's growth potential.
Among the major recommendations discussed was a proposal to rationalise the premium payment schedule through a 10:10:80 model-where 10% of the premium would be paid at the time of project approval, another 10% at the Commencement Certificate stage, and the remaining 80% at the Occupation Certificate stage. Developers currently pay several premiums, such as fungible FSI, open space deficiency, fire service charges, scrutiny fees, and development cess, either upfront or through deferment schemes with 12% interest. Since these payments are often due in early project stages, they create a significant financial strain before revenue generation begins. The proposed model aims to align payments with project cash flows while maintaining civic revenue neutrality.
CREDAI-MCHI President Sukhraj Nahar noted that this joint representation reflected the industry's shared intent to engage constructively with civic authorities. He observed that the unified stance of the associations demonstrated a commitment to structured communication, transparency, and timely issue resolution. He also explained that the suggested 10:10:80 model was designed to balance the needs of both the industry and the administration.
Secretary Rushi Mehta highlighted that such coordinated efforts mark a progressive shift towards collaborative problem-solving. He remarked that consistent engagement between the real estate sector and civic authorities was crucial to unlocking Mumbai's full development potential, expressing optimism that these efforts would lead to practical and lasting reforms benefiting both the industry and the city.
This initiative continues the spirit of unity first displayed during the Real Estate Leaders' Convergence held earlier this month, where all major associations resolved to present a joint front. With this renewed momentum, CREDAI-MCHI, NAREDCO, PEATA, and BDA have taken another concrete step towards fostering a transparent, responsive, and efficient real estate governance framework in Mumbai.
The establishment of the Real Estate Steering Committee marks a pivotal moment in fostering cooperation between Mumbai's civic administration and the development community. By encouraging structured dialogue, addressing procedural challenges, and aligning financial mechanisms with project progress, the initiative aims to enhance efficiency in policy execution. With regular reviews and participation from senior municipal leadership, this collaborative framework promises to create a more streamlined, transparent, and growth-oriented real estate environment in Mumbai.
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