The Bombay High Court has issued an interim stay on the Maharashtra state government’s directive to the Panvel Municipal Corporation (PMC) regarding the Floor Space Index (FSI) premium scheme. This development is poised to provide substantial relief to local farmers in the Panvel region, enhancing the market value of their Transferable Development Rights (TDR).
The court’s stay follows petitions challenging a 15 March order from the state urban development department. This order had stipulated that 75% of the permissible TDR within the PMC area could be used upon payment of a premium calculated at 60% of the land rate specified in the annual rate statement. The remaining 25% of TDR was to be used solely in its original form. The petitioners, including Pawan Kadam, a farmer, and Haresh Keni, a former PMC corporator, contested the clause, arguing that it undermined the value of TDR for landowners.
In the Panvel region, farmers typically receive TDR as compensation when their land is requisitioned for public infrastructure projects such as roads and hospitals. This TDR is usually sold to private developers at a premium, reflecting its high demand for additional construction in areas like CIDCO nodes of Panvel, New Panvel, Kalamboli, and Khanda colony. The court’s decision to stay the order is expected to enable farmers to secure better prices for their TDR, countering the adverse effects of the government’s notification.
Critics of the notification, including Maharashtra Navnirman Sena’s Panvel president, argue that it favoured developers by making FSI cheaper and undermining the value of TDR. The president contends that the notification, issued just before the Lok Sabha code of conduct took effect, was unfair to farmers and would have forced PMC to expend substantial funds to acquire land rather than leveraging TDR. He further noted that the notification appeared to cater primarily to developers’ interests, with minimal consultation with affected farmers.
The interim stay, initially ordered on 3 July, was followed by a hearing on 7 August and a continuation of the stay on 8 August. The next hearing is scheduled for 25 November. This legal reprieve is anticipated to ensure that PMC must purchase TDR at prevailing market rates, thus preserving the economic interests of farmers and maintaining the balance of power in land transactions for infrastructure development.
