October 28, 2025: In a proactive move, Bhushan Gagrani, commissioner, Brihanmumbai Municipal Corporation (BMC) has agreed to form a ‘Real Estate Steering Committee’ comprising representation from CREDAI-MCHI, NAREDCO Maharashtra, PEATA, and BDA along with officers from various departments of MCGM, including the fire officer. Through this Committee, the BMC will introduce Ease of Doing Business 2(EODB 2) and are working on introducing AI into plan approvals.
The committee will seek representations from various developers’ associations and the BMC officials regarding the issues engulfing the city’s real estate sector and discuss, assess them further to seek real-time resolutions. Gagrani informed this during his meeting with the members of various developers’ bodies represented by office-bearers of CREDAI-MCHI, NAREDCO Maharashtra, Brihanmumbai Developers Association (BDA) and Practising Engineers, Architects and Town Planners Association (PEATA) held at the BMC Headquarters in Mumbai.
The decision is seen as a significant step to strengthen collaboration between Mumbai’s municipal administration and the real estate industry. The Committee plans to meet every fortnight to discuss various key issues, policy matters and opportunities for Mumbai’s Real Estate Sector. The meeting would be chaired by deputy chief engineer (Office of the Municipal Commissioner) Chandrashekhar Undge and BMC Commissioner. Gagrani would also partake in such meetings on a monthly basis. This structure will ensure that key decisions and recommendations are tracked, implemented, and reviewed regularly, mentioned Gagrani.
Building on the momentum of the convergence meet across various real estate associations, Sukhraj Nahar, president CREDAI – MCHI, and Sandeep Runwal, vice chairman, NAREDCO Maharashtra along with the members of BDA and PEATA, organised a joint meeting with
Gagrani and his team and discussed various policy issues and procedural bottlenecks affecting the real estate sector.
Among the key recommendations made during the interaction was a call to rationalise the premium payment schedule through a 10:10:80 structure — where 10% of the premium would be paid at the time of approval, another 10% at the stage of Commencement Certificate (CC), and the balance 80% at the Occupation Certificate (OC) stage. Currently, developers are required to pay multiple premiums — such as fungible FSI, open space deficiency, fire service charges, scrutiny fees, and development cess — either upfront or under deferment schemes with 12% interest. Since these payments are often levied at early stages of development, they place a heavy financial burden before any revenue is generated. The proposed structure aims to align payments with project cash flows, making them more practical and sustainable without affecting civic revenues.
Sukhraj Nahar, president, CREDAI-MCHI, said, “This joint representation reflects the industry’s commitment to constructive engagement with the municipal administration. He stated, “It is heartening to see all real estate associations come together with a unified voice. Our aim is to work collaboratively with the BMC to create structured mechanisms that ensure a regular dialogue, timely resolution of issues, and greater transparency in processes. The proposed 10:10:80 premium payment model is a fair and practical approach that aligns payment timelines with actual project progress and cash inflows whilst being revenue neutral from the administration standpoint.”
Sandeep Runwal, vice chairman, NAREDCO Maharashtra added, “The real estate industry is one of Mumbai’s key growth drivers, and regular engagement with the civic authorities is vital to unlock its full potential. We look forward to building on this momentum and ensuring that our suggestions translate into tangible improvements for both the industry and the city.”
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