The Ahmedabad Municipal Corporation (AMC) experienced a surge in project approvals and revenue collection during a period between March 1 and April 15. A total of 560 projects were approved, resulting in a substantial amount of Rs 784 crore collected from developers through chargeable Floor Space Index (FSI) and other fees. This influx of revenue can be attributed to the announcement of the jantri revision, which led developers to seek approvals based on the old rates to minimize costs. The relaxation of chargeable FSI for affordable housing projects further accelerated the rush among developers.
Between March 1 and April 15, the Ahmedabad Municipal Corporation (AMC) approved an astonishing 560 projects, according to records from the town planning department. As a result, the AMC collected a significant amount of Rs 784 crore from developers through chargeable Floor Space Index (FSI) and other fees. More than 100 builders purchased chargeable FSI worth over Rs 400 crore, with payments scheduled to be made in instalments over a two-year period. Builders failing to make timely payments will face an 8% interest charge.
During this period, the revenue generated by the AMC from chargeable FSI and other fees reached a remarkable Rs 1,184 crore, marking the highest collection in recent years. The surge in revenue can be attributed to the jantri revision announcement, which prompted developers to seek building plan approvals based on the old jantri rates to minimize their expenditure on chargeable FSI. Additionally, the relaxation of chargeable FSI for affordable housing projects further fuelled the rush among developers.
The race against the jantri deadline resulted in a significant increase in construction project approvals and a substantial boost in revenue for the AMC. The combination of the imminent jantri revision and the relaxation of chargeable FSI for affordable housing projects created a sense of urgency among developers, leading them to secure building plan approvals under the previous rates. While the AMC stands to benefit from the substantial revenue generated, the impact of these approved projects on the development and growth of Ahmedabad remains to be seen.
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