The compensation stems from revenue losses incurred by urban local bodies following the nationwide implementation of GST on July 1, 2017, which abolished entry taxes, octroi, local body taxes, and other levies that municipalities previously collected under Entry 52 of List II of the Seventh Schedule of the Indian Constitution.

Of the total sanctioned amount, certain deductions were made before disbursement. A sum of ₹3.44 crore was recovered from 25 municipal corporations toward the operation and maintenance of High Capacity Suction and Jetting Machines with Water Recycling Facility — equipment being provided to urban local bodies for the health and safety of workers who clean underground drainage and sewage collection systems. Additionally, ₹49.96 crore was deducted for outstanding payments to EESL (Energy Efficiency Services Limited) for LED street lighting for 15 municipal corporations, with dues pending up to November 2025. After these deductions, the net amount actually disbursed stands at ₹5,532.28 crore.

The Additional Secretary of the Urban Development Department has been designated as the Drawing and Disbursing Officer, responsible for drawing the full amount from the Pay and Accounts Officer in Mumbai and transferring it immediately to the respective municipal corporations and the Directorate of Municipal Administration.

Here is the breakdown of funds allocated to each municipal corporation for April and May 2026:

Nagpur has received ₹318.63 crore. Chandrapur has been allotted ₹12.62 crore. Amravati gets ₹23.27 crore. Akola receives ₹18.34 crore. Chhatrapati Sambhajinagar (formerly Aurangabad) has been allocated ₹78.12 crore. Parbhani receives ₹1.75 crore. Latur gets ₹1.38 crore. Nanded-Waghala has been allocated ₹22.48 crore. Nashik receives ₹269.54 crore. Malegaon gets ₹44.46 crore. Dhule receives ₹28.28 crore. Jalgaon gets ₹31.74 crore. Ahilyanagar (formerly Ahmednagar) receives ₹25.24 crore. Pune has been allocated ₹485.05 crore. Pimpri-Chinchwad receives ₹457.54 crore. Kolhapur gets ₹35.78 crore. Solapur receives ₹57.52 crore. Sangli has been allotted ₹43.16 crore. Mira-Bhayandar receives ₹58.40 crore. Vasai-Virar gets ₹94.16 crore. Bhiwandi-Nizampur receives ₹68.02 crore. Ulhasnagar gets ₹51.48 crore. Kalyan-Dombivli receives ₹59.82 crore. Thane has been allocated ₹221.52 crore. Navi Mumbai receives ₹316.28 crore. Panvel gets ₹90.42 crore. Brihanmumbai Municipal Corporation (BMC) has received the largest share at ₹2,587.55 crore. Jalna receives ₹10.86 crore. Ichalkaranji gets ₹18.82 crore.

The expenditure is being charged under Demand No. F-4, Major Head 3604, Sub-Head 0998 of the 2026–27 budget.

Also Read: CIDCO Puts 20 Plots Up for Auction in Navi Mumbai: Includes Bungalows and Warehouses for Lease

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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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The November missive, addressed to SRA’s Chief Executive Officer, reiterates the key Government Resolution (GR) dated 26 June 2024, which expanded eligibility to include first-floor residents of pre-1995 chawls—previously deemed unauthorised and excluded from rehabilitation benefits. Under this policy, affected families stand to receive rehab flats in newly developed buildings, aligning with the SRA’s mandate to provide secure housing to vulnerable urban communities. The letter explicitly calls for:

1. Immediate completion of Annexure-II surveys for eligible first-floor tenements.
2. Preparation and submission of a comprehensive list of regularised chawls.
3. Issuance of Letters of Intent (LoIs) to kickstart redevelopment in affected areas.

“Despite clear directives over the past 17 months, progress remains negligible. This is unacceptable,” the letter states, directing SRA to furnish a detailed action plan within a week. It further mandates coordination with municipal bodies to avoid any procedural bottlenecks, emphasizing that resident welfare cannot be compromised.

This latest push marks the third major intervention from the state government since the policy’s announcement, following reminders in September 2024 and June 2025. Sources within the department reveal that the timing is no coincidence: With Brihanmumbai Municipal Corporation (BMC) elections slated for early 2026, the Mahayuti alliance is prioritizing visible deliverables in densely populated chawl clusters across suburbs like Malad, Goregaon, Jogeshwari, Andheri, and Ghatkopar. These areas house lakhs of voters who have long agitated for inclusion in SRA schemes, making the regularisation a high-stakes electoral plank.

BJP leader and former Malad corporator Vinod Mishra, who penned a supportive letter to SRA, hailed the move as a “game-changer for justice.” In his communication, Mishra urged the authority to prioritise surveys and approvals, noting that thousands of families have endured eviction threats for decades. “The government’s resolve today ensures no family on the first floor will be left behind,” he told reporters.

SRA officials, speaking anonymously, acknowledged the pressure but cited challenges like land disputes and developer hesitancy as hurdles.

If executed promptly, the policy could transform the lives of tens of thousands, fostering inclusive urban renewal in Mumbai’s historic chawl ecosystems. As the BMC polls loom, all eyes are on whether this administrative nudge translates into tangible homes—or remains another file in the bureaucracy’s backlog. The government has made it clear: Instant reply and action are non-negotiable.

Also Read: Will BJP’s Continued Rule Accelerate Slum Redevelopment in Mumbai?

The post Maharashtra Govt Escalates Pressure on SRA: ‘Immediate Action’ Ordered on Chawl First-Floor Regularisation Ahead of BMC Polls appeared first on Square Feat India.

The Maharashtra Government has officially approved the Mumbai Metro Line-11 project—running from Wadala to Gateway of India, including its depot—at a total estimated cost of ₹23,487.51 crore. This approval came through an Urban Development Department press note issued on 18 November 2025.

Metro Line-11, planned as an extension of Metro Line-4/4A, will span 17.51 km, including 13 underground stations and 1 at-grade station, and will be executed by the Mumbai Metro Rail Corporation Limited (MMRCL).

State to Accept Contingent Liability for External Loans

The government confirmed that it will accept the contingent liability related to external financing for the project. This includes the principal amount, interest, and any additional charges associated with the loan to be raised for project implementation.

Crucially, the State Government has approved the signing of the Project Agreement, Loan Agreement, and the Subsidiary Loan Agreement to facilitate this external financial assistance.

Important Correction in Earlier Government Resolution

The new press note also corrects a key clause in a previous Government Resolution dated 11 September 2025.

In Clause No. 12 of that resolution, the phrase “responsibility of repayment” has now been officially removed.

The corrected clause now states that the State Government will take on only the contingent liability, not direct repayment responsibility, for the loan being raised for Metro Line-11. The State may also provide a government guarantee for the loan if required.

Metro Line-11: A Critical Link to South Mumbai

Metro Line-11 is one of the most anticipated metro corridors in Mumbai as it will connect Wadala, Sewri, Fort, and Colaba directly to the Gateway of India. The corridor is expected to drastically reduce travel time to South Mumbai and ease congestion on existing road and rail networks.

Also Read: PM to Inaugurate Mumbai Metro Line Today

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Government Issues Notice to Change Land Use

The Government of Maharashtra has officially proposed to delete the reservation for a “Marine Research Institute, Aquarium and Exhibition Center” on the Worli Dairy land and include the plot in the Commercial Zone, paving the way for its redevelopment into a commercial hub.

This proposed modification has been issued under Section 37(1AA) of the Maharashtra Regional and Town Planning Act, 1966 and was published on 25 September 2025 by the Urban Development Department. The notice invites public objections and suggestions within one month from its publication.

Worli Dairy Land: A Prime Parcel in the City’s Heart

The land in question — spread over 6.40 hectares — lies in Worli Division, a prime central Mumbai location. Under the Development Plan 2034, the plot was earlier marked as a “Dairy” (EP4.1) and zoned as a Residential Zone.

Later, in 2022, the government modified this to reserve:

• A portion of the land for a Marine Research Institute, Aquarium and Exhibition Center
• The remaining for Government Offices

This vision, however, is now being replaced by a commercial land use plan.

MMRDA to Take Charge of Redevelopment

The shift towards commercial development follows a proposal by the Mumbai Metropolitan Region Development Authority (MMRDA) in January 2024, in which it highlighted that:

• The Worli Dairy land is centrally located, making it ideal for a planned commercial and mixed-use development.
• Such development could generate new employment opportunities and contribute to Mumbai’s economic growth.
• MMRDA requested the handover of the land and to be appointed as the Special Planning Authority (SPA) for the site.

Subsequently, in a Growth Hub Governing Council meeting chaired by the Chief Minister on 7 April 2025, it was decided to appoint MMRDA as the Project Implementing Agency. MMRDA will now prepare a Draft Planning Proposal for the site and submit it to the state government for sanction.

Public Objections and Suggestions Invited

As part of the statutory planning process, the Urban Development Department has invited objections and suggestions from the public regarding the proposed modification.

• Citizens and stakeholders can submit their views within one month from the date of publication of the notice in the Maharashtra Government Gazette.
• Submissions should be made to the Deputy Director of Town Planning, Greater Mumbai, at Azad Maidan.
• A plan showing the proposed modification is available for inspection at:
  • The Office of the Chief Engineer (Development Plan), BMC Headquarters, Mahapalika Marg
  • The Office of the Deputy Director of Town Planning, ENSA Hutments, Azad Maidan

What This Means for Mumbai

The deletion of the aquarium and marine research reservation and the conversion of Worli Dairy land into Commercial Zone marks a significant shift in land use policy.

This decision could:

• Unlock new commercial development opportunities in a prime location
• Potentially bring offices, mixed-use spaces, and economic activity to Worli
• Signal a push towards economic hub development in central Mumbai, aligning with the government’s Growth Hub vision

Next Steps

After the objection period ends, the Deputy Director of Town Planning will examine all submissions and submit a report to the government. Once approved, the modification will formally become part of the Development Plan 2034, allowing commercial redevelopment to begin.

Also Read: Encroachment Free Worli Road, Developers Say Will Benefit Area’s Real Estate.

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