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In recent appreciable move to construct more flats in Mumbai and increase the development potential of plots including those proposing redevelopment, the State Government has introduced a new rule under the Development Control Regulations (DCR). With the new rule, plots measuring over 2,125 sq. mtrs equivalent to 22,873 sq. foot will now be allowed to build more, vertically. According to the new regulation under DCR, the Brihanmumbai Municipal Corporation (BMC) will calculate the development potential of a plot on its gross area i.e. 2,125 sq. mtrs without deducting the area reserved for recreational ground.

Every plot, where a residential structure is coming up will have to reserve 15% of land for open spaces known as recreational ground (RG) according to the 1967 and 1991 DCR. This resulted in lesser number of flats being constructed.

The State Government in the new DCR which decides the use of land has asked the BMC henceforth to calculate the development potential of a plot on the gross area even though 15% is reserved for open space, for which the legal term is recreational ground (RG).

For instance, earlier, out of a plot measuring 2,500 sq. mtrs, only 2,125 sq. mtrs were available for construction after deduction of 15% i.e. 2,500 sq. mtrs less 375 sq. mtrs towards RG, the compulsory open area for use of residents. However, with the new rule, the gross size of the plot i.e. 2,500 sq. mtrs will be fully taken into consideration for development potential allowing the Developer to construct 5,000 sq. mtrs of space including the TDR FSI of 1.