The Maharashtra Cabinet on January 6 approved the proposal to cut real estate premiums by 50 per cent till December 31, 2021, according to sources quoted in media reports.
After reducing stamp duties in the state to boost residential sales, the Maharashtra Government has now decided to reduce the premium on real estate projects by at least half, following recommendations of the Deepak Parekh Committee, said the reports.
Premium typically refers to the multiple charges that are levied by the state with respect to approvals for initiating, progressing, and completing the area or additional area in a project
According to the committee, there are 22 premiums collected in Mumbai under various heads – including FSI, staircases, lift-wells and lobbies, etc. This is significantly higher than in other comparable top cities of the country. In Bengaluru, developers have to pay 10 different premiums and charges, in Delhi five and in Hyderabad three.