Mumbai's Redevelopment Boom: Higher FSI Schemes Bring Windfalls for Builders
Mumbai's redevelopment market is booming thanks to higher FSI schemes, offering lucrative opportunities for builders and increased space for residents. However, concerns over population density and infrastructure load remain.
RedevelopmentFsiMumbaiPropertyBuildersReal Estate MumbaiAug 18, 2025
Architect Manoj Daisaria explained that the high FSI offered under these schemes is leading residents of housing societies to demand 30-50% more space in the redeveloped property. For instance, on Bandra's sea-facing Carter Road, developer Anand Pandit recently signed an agreement with Shree Amrit Society, where actor Shah Rukh Khan has a flat, offering members an unprecedented 155% more space in the new tower. The six-storey building will be replaced by an 18-storey tower.
Pandit told the media, 'We haven't decided on which scheme to utilize. It may also depend on the financial benefits.'
The Slum Rehabilitation Authority (SRA) was the first to introduce a scheme to boost redevelopment with Regulation 33 (11) of the Development Control and Promotion Regulations (DCPR) 2034. This scheme offers an FSI of 4 compared to the normal 2.5, meaning the developer can construct 4,000 sq m on a redeveloped 1,000 sq m plot, as opposed to just 2,500 sq m for a regular housing block. More than a hundred developers have taken advantage of this scheme.
Not to be left behind, the BMC recently introduced a similar scheme—Section 33 (20B) of DCPR 2034—after the state modified it. The BMC's message was clear: 'Give us Permanent Transit Camps (PTC) and take more FSI.' Domnic Rommel, former president of CREDAI-MCHI, a body representing developers, said most now prefer the BMC scheme. According to him, it can allow an FSI of up to 5.4 (including fungible FSI).
'This increases the financial viability, making redevelopment more economical compared to SRA's 33 (11),' Rommel said.
Bandra-based developer Sharan Babani noted, 'A five-storey building can go up to 25-27 floors if the road has more width (under 33(20B)).' In Bandra-Khar, most redeveloped buildings are now about 70 metres tall (18-20 floors), whereas old housing societies in this belt are barely two to seven floors high.
However, Babani added that what's also changing—and often overlooked—is the density in these buildings. 'Under regular schemes, there may have been only two apartments per floor, but with the higher FSI available under schemes like BMC's 33(20B), that can now increase to four or even five units per floor. This means double or more the number of families on the same footprint, dramatically altering the population density, infrastructure load, and local traffic patterns,' he warned.
Developer Sanjay Devnani said such schemes under 33 (11) and 33 (20B) are a 'win-win for all stakeholders: residents, builders, and the approving authorities.' 'Now, a building which consumes 10,000 sq ft is allowed 50,000 to 60,000 sq ft during redevelopment,' he said. However, housing expert Chandrashekhar Prabhu said the planning authorities (BMC and SRA) seem more than willing to grant much more FSI than what is provided under the city's development control rules.
'Though different ostensible reasons have been advanced to justify the windfall, the real reason appears to be the war to control the approval processes, and through them…to take kickbacks,' Prabhu said. 'The government has realized that it failed when it came to building houses for slum dwellers and those displaced due to public projects. Instead of finding ways to utilize public lands effectively, the government has now decided to shift the onus of providing accommodation for project-affected people and transit to the builders,' he added.
Property experts said the challenge is also to ensure that PTC tenements, which are rarely completed on time, are handed over to the authorities, and that the clubbed free sale buildings which are stuck without occupation certificates as a result, get approvals. 'A lot of builders are now developing the PTCs on their own and not relying on unscrupulous SRA developers. That way they can complete the PTCs and hand them over, which then gets them the occupation certificate of the free sale buildings in prime areas,' they said.
Frequently Asked Questions
What is FSI in the context of redevelopment?
FSI, or Floor Space Index, is a measure of the total area that can be built on a plot of land. In the context of redevelopment, a higher FSI allows builders to construct more floors, increasing the total area of the building.
How does Regulation 33 (11) of the DCPR 2034 benefit developers?
Regulation 33 (11) of the Development Control and Promotion Regulations (DCPR) 2034 offers an FSI of 4 compared to the normal 2.5, allowing developers to construct more floors and increase the total area of the building.
What is the BMC's Section 33 (20B) of DCPR 2034?
Section 33 (20B) of DCPR 2034, introduced by the BMC, allows developers to receive a higher FSI in exchange for constructing and handing over Permanent Transit Camps (PTC) to the authorities.
What are the potential drawbacks of these higher FSI schemes?
The potential drawbacks include increased population density, higher infrastructure load, and more local traffic, which can affect the quality of life in the area. There are also concerns about the timely completion and handover of PTC tenements to the authorities.
How do residents benefit from these higher FSI schemes?
Residents benefit from these schemes by receiving more space in the redeveloped property. For example, they can get 30-50% more space, or even up to 155% more in some cases, as seen in the Shree Amrit Society in Bandra.
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