Developer would’ve made huge gains from Crawford Mkt: BMC

Civic Body Rejects 6-Yr-Old Plan In The 'Public Interest'. New Options On Cards    The six-year-old plan to redevelop the iconic Mahatma Jyotiba Phule Market, or Crawford Market, is back to square one after civic chief Subodh Kumar rejected the proposal. An exercise conducted by the markets' department had projected that, based on the proposal submitted, the unearned income of the private developer would have been Rs 348.26 crore. Unearned income includes profits after subtracting all expenses. Officials said the amount is unreasonably high. 

    The BMC is now exploring all options, including doing the redevelopment itself. Letters informing the developer, East and West Developers, and the local market association of the cancellation will be issued in a few days, officials said. 
    The controversial plan to redevelop the centrally located market had attracted the ire of heritage lovers and activists, with questions also being raised about why private development was being allowed on the prime municipal plot. 
    The developers had been appointed by the local market association. The developer had originally proposed to build two high-rises – one of eight storeys and another of nine storeys – alongside the famous clock tower. Allegations were levied that heritage guidelines had been circumvented to favour the developer. 
    In September 2007, the civic improvements committee approved the plan amidst a public outcry. The civic general body approved the plan six months later. The final approval was stalled, however, following objections raised by members of the heritage committee. Approval from the heritage committee is mandatory since the market is a heritage structure. Objections persisted even as the developer agreed to modify the proposal to include just a single high-rise. 
    Built in 1871, the market is spread across 2.42 lakh square feet. The developer had proposed to redevelop the market portion, excluding the clock tower and three fountains, which are listed as Grade I heritage structures. The incentive FSI was as high as 4. After rehabilitating the 727 shopkeepers, the developer was to retain 2.72 lakh square feet of built-up area, whereas the BMC would have got 4.52 lakh square feet. 
    The BMC has now cancelled the proposal, claiming that the policy under which it was formed is not "beneficial to the corporation" and needs amendment. Kumar objected to the policy not taking into account the market value of a plot. Officials said a civic study showed that such a policy leads to developers making unjustified profits out of markets. 
ON REVAMP ROAD 
The redevelopment of these 18 markets won't be affected because final approvals had already been given 
Gopi Tank Market, Dadar J M G Kela Mandai, Byculla M G M Market, Byculla G L Patil Mandai, Sewri M H M Mandai, Sion Koliwada Pali Market, Bandra B R Gavde Mandai, Worli Naka Vakola Mandai, Santa Cruz Kalina Mandai, Santa Cruz Kherwadi Market, Bandra Dr Babasaheb Ambedkar Market, Kandivali Pant Nagar Market, Ghatkopar Hirachand Desai Market, Ghatkopar B H Chemburkar Market, Chembur Tilak Nagar Mandai, Chembur St Jalaram Bappa Market, Mulund Mulund (East) Municipal Market Park Site Mandai, VikhroliSource: BMC 
ESTIMATED RETURNS | The developers of the Crawford, Veer Savarkar, K N Patil and A A Bhau Lad markets would have made an unearned income of more than Rs 100 crore each, according to BMC estimates. An FSI of 4 is permitted for markets built before 1940 in the island city. It is 2.5 for those built between 1940 and 1950; 2 for those built between 1950 and 1960; and 1.33 for those built later. The FSI for markets in the suburbs is 1, but there an extra FSI of 1 can be loaded through TDR. Existing businesses are to be re-housed free. After that, the built-up area created through FSI is shared between the BMC and developer in the ratio of 1:0.6 (BMC gets 62.5% share) in the island city and 1:1 in the suburbs (BMC gets 50%) 
AUGUST DEADLINE 
Civic officials said cancellation letters were first issued to 12 of the 25 rejected projects because those 12 developers had filed a writ petition in the Bombay High Court against the BMC for delays in approving the plans. The court asked the BMC to decide the matter by August 24. The 12 letters were issued on August 20. 
THE PATH AHEAD 
In the future, markets could be placed in different categories 
The new formula could reduce the developer's share when market value of the plot rises 
BMC will consider doing its own redevelopment if any developer of the 25 rejected projects doesn't submit a new plan 
    BMC will take up redevelopment of 49 other markets by appointing subcontractors. These markets will be redeveloped using FSI of 4; sub-contractors will be allowed TDR in the suburbs 
    Bids to be called for six vacant plots marked for markets

CRAWFORD MARKET