Under the earlier framework, such amenity spaces were permitted free of FSI up to a limit of 2% of the total Built-Up Area (BUA) of each building. The revised regulation now raises that ceiling to 4%, effectively doubling the quantum of amenity space a society can create or legalise without it eating into the building’s permissible FSI envelope. For a large residential tower with, say, 10,000 sq. mt. of BUA, this translates to an additional 200 sq. mt. that can be dedicated to wellness and recreation — entirely free of FSI implications.

What’s New: Expanded Uses

Beyond the FSI increase, the amendment meaningfully widens the scope of permissible uses. While the original regulation was confined to Yogalayas and Fitness Centres only, the revised version now expressly includes Meditation Centres and Recreational Activities under the same FSI-free benefit. This change was proposed following requests made by real-estate industry bodies PEATA and CREDAI to the Brihanmumbai Municipal Corporation (BMC), which subsequently submitted the modification proposal to the state government.

The Director of Town Planning, Maharashtra State, submitted his report on the proposal on 16th March 2026, and after consultation, the state government decided to sanction the modification with certain refinements. A public notice inviting suggestions and objections had already been published in the Maharashtra Government Gazette between 4th and 10th September 2025, completing the mandatory statutory procedure under Section 37(1) of the Maharashtra Regional and Town Planning Act, 1966.

Conditions & Eligibility

The enhanced benefit is not unconditional. Societies and developers must adhere to several stipulations:

• The facility must be exclusively for use by members of the registered Co-operative Housing Society or Apartment Owners Association — not open to the general public or individual flat holders as a separate commercial venture.
• An application must be submitted to the BMC, supported by the society’s registered occupation certificate (BCC), along with a registered undertaking committing to hand over the constructed centre to the society upon completion.
• The minimum area of any such facility shall be 30 sq. mt.
• Any BUA dedicated to these facilities that exceeds the 4% cap will be counted in FSI and charged accordingly.
• In layouts with an existing or proposed Club House under Regulation 27, the FSI-free allowance applies to the area equal to 4% of total BUA minus the clubhouse BUA.
• The regulation applies to all residential multi-dwelling unit buildings and condominiums, but not to individual residential holdings.

New Window for Commercial Buildings — Regulation 28(A)

The amendment also introduces a brand-new Sub Clause 28(A) under Regulation 37, extending the wellness-space benefit to commercial buildings for the first time. A Yogalaya, Fitness Centre, Meditation Centre or Recreational Activities facility may be permitted in existing or proposed office and commercial buildings — subject to the same 4% FSI-free cap, exclusively for members, owners or occupants of the commercial premises. The land rate premium for any area within the 4% cap shall be computed at 100% of the Annual Statement of Rates (ASR); anything above 4% shall be counted in FSI.

What This Means for Societies

For the thousands of housing societies across Greater Mumbai that have long struggled to carve out meaningful amenity space, this is a significant policy shift. Societies that had previously exhausted their 2% allowance can now expand their facilities. Developers of under-construction projects can plan larger wellness zones without the FSI cost that previously made such ambitions financially unviable. The notification directs BMC to add the sanctioned schedule of modifications to its existing records, with the same also published on www.maharashtra.gov.in.

Also Read: Maharashtra Govt Issues Orders to Regularise Pre-2011 Residential Encroachments on Govt Land

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