Addressing Payment of Premium and NOC Issues for Additional FSI Allotment  under MHADA’s Instalment Policy


The Maharashtra Housing Area Development Authority (MHADA) plays a vital role in regulating housing and development projects across the state. However, a crucial issue has emerged concerning the payment of premiums for the allotment of additional Floor Space Index (FSI) under MHADA’s REE Department’s instalment policy, as per Authority Resolution No. 6749 dated 11.07.2017. Moreover, the lack of No Objection Certificate (NOC) issuance for the entire approved Built-Up Area (BUA) and the imposition of interest on unpaid amounts have raised concerns among stakeholders. This article aims to provide an overview of the issue and call for a resolution from the REE Department for the betterment of housing and development initiatives in Maharashtra.

Understanding the Issue:

 MHADA’s instalment policy for the allotment of additional FSI through the REE Department has been a significant step towards promoting urban development and addressing housing demands. However, certain aspects of this policy have led to confusion and challenges:

Payment of Premium in Instalments:

One key aspect of the issue is the requirement for developers to pay premiums in instalments for the allotment of additional FSI. This approach aims to facilitate the affordability of projects while ensuring timely contributions.

NOC for the Entire Approved BUA:

Another aspect pertains to the issuance of NOC to the Commencement Certificate (C.C.). The lack of NOC for the entire approved BUA poses hindrances to the development process and raises questions about fairness and transparency.

Levying Interest on Proportionate Amount:

Additionally, the imposition of interest on the unpaid proportionate amount for which the NOC to C.C. is not granted has raised concerns among developers, impacting project costs and timelines.

Requesting Resolution:

To address the challenges outlined above and ensure a conducive environment for urban development, we propose the following steps:

NOC Issuance for Entire Approved BUA:

The REE Department should expedite the process of issuing the NOC for the entire approved BUA. Timely NOC issuance will enable developers to move forward with projects without unnecessary delays.

Interest Waiver for Unapproved Proportionate Amount:

In cases where the NOC for a proportionate amount of BUA is not granted, developers should not be burdened with interest charges. The imposition of interest on such amounts could be counterproductive and hinder development initiatives.

Stakeholder Consultation and Transparency:

MHADA should engage with stakeholders, including developers and industry experts, to streamline policies and procedures. Transparency and open dialogue can lead to effective solutions that benefit all parties involved.


The issue of premium payment and NOC issuance for additional FSI under MHADA’s instalment policy requires prompt attention and resolution. By addressing these challenges, MHADA can create a more conducive environment for urban development, promote transparency, and facilitate timely project execution. We call upon the REE, MHADA to consider these recommendations and take steps towards ensuring fair and efficient policies that contribute to the growth of Maharashtra’s housing and development sector.

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