EWS and LIG Reservation on Large Redevelopment Plots

If your society is redeveloping a large plot in Mumbai, you may have heard that a slice of the project must be built as affordable housing for lower-income families and handed to the government. That rule is real and it is live. It has a name and a number: Regulation 15 — Inclusive Housing (IH) of the sanctioned DCPR 2034, which governs Greater Mumbai. It applies to residential development on a plot of 4,000 sq m or more and takes 20%.

But the same regulation carries a carve-out written specifically for housing societies. If the carpet area of every existing flat in your society is 80 sq m (861 sq ft) or less, there is no Inclusive Housing obligation at all — no matter how big the plot is. And a long list of redevelopment schemes, including cessed 33(7), MHADA 33(5), cluster 33(9) and slum 33(10), is exempt outright. Two tests, both of which you can run this week from your own property card and your own flat sizes.

Source: DCPR 2034 (sanctioned), Regulation 15 — Inclusive Housing.

What EWS and LIG actually mean

Government housing policy in India sorts households into income bands so that affordable-housing schemes can be targeted. Two of those bands matter here:

• EWS (Economically Weaker Section) — the lowest income band, families with very limited earning capacity who cannot afford an open-market flat.
• LIG (Lower Income Group) — the next band up, low-income households who still need support to buy or rent a home.

Above these sit MIG (Middle Income Group) and HIG (Higher Income Group), which are not the subject of any reservation. The exact rupee income cut-offs for each band are fixed by the Housing Department, Government of Maharashtra, and are revised from time to time, so treat any income figure you read as indicative rather than permanent.

The size of the flat, however, is fixed in the regulation itself. DCPR 2034 Regulation 2(10A) defines "Affordable Housing" as social housing for the economically weaker section and lower income group "having carpet area of 27.88 sq. mt. (300 sq. ft) or of such area as may be decided by Govt. from time to time." Regulation 15 then fixes the buildable range: an IH tenement must have a carpet area between 25 sq m (269 sq ft) and 27.88 sq m (300 sq ft). That is the flat the reservation actually produces — a 269 to 300 sq ft carpet unit, not a full-sized apartment.

Source: DCPR 2034 (sanctioned), Regulation 2(10A) and Regulation 15(1)(c) and 15(2).

What "reservation" means in a building plan

A reservation here does not mean a plot of land is coloured on a town-planning map. It means that when a large plot is developed, a defined share of the housing on it must be built as small, affordable EWS or LIG flats and made available to eligible families, usually through a public housing authority, at a controlled price rather than the open-market rate. Regulation 15 gives exactly two routes and no cash option: hand over 20% of the plot area to MCGM free of cost, or build IH tenements to 20% of the Zonal (basic) FSI and hand those over. The build route may be shifted to another plot in the same Administrative Ward. There is no provision in Regulation 15 for paying a charge in lieu of either route — if a developer offers to "pay the reservation off", ask them to point to the clause, because it is not in this one. This idea is generally called inclusionary housing — the aim is to mix affordable homes into ordinary development instead of pushing low-income families to the city's edge.

Test 1 — is your plot 4,000 sq m or more?

The logic behind the rule is simple: land is the scarcest thing in Mumbai, so every large residential development should carry a small social obligation. To avoid burdening small owners and single buildings, the obligation is tied to a plot-size threshold. Regulation 15 sets that threshold precisely.

It applies to "any residential development partially or fully consisting of sub-division / amalgamation / layout or single plot of land having gross plot area admeasuring 4000 sq.m. or more". Crucially, the regulation tells you what to leave out of that measurement, and it is the same exclusion list twice over:

So a plot of 4,150 sq m that gives up 300 sq m to a DP road widening measures 3,850 sq m for this test, and Regulation 15 does not apply to it. The measurement is worth doing properly — a few hundred square metres decides the whole question. 4,000 sq m is roughly 43,056 sq ft, or a little under an acre.

One narrower carve-out sits in the same regulation: it does not apply to redevelopment of an individual bungalow in a Bungalow Scheme — but it does apply once redevelopment of the Bungalow Scheme itself, or of a layout plot of more than 4,000 sq m, is proposed.

Source: DCPR 2034 (sanctioned), Regulation 15, opening paragraph and the Bungalow Scheme proviso.

Test 2 — does any existing flat exceed 80 sq m carpet?

This is the test almost nobody quotes, and for an ordinary housing society it is the one that usually settles the matter. Regulation 15 says, in terms:

"Provided that there shall be no obligation to construct IH tenements in the redevelopment project of any Co-operative Housing Society / federation of societies / association / condominium / apartment owner's association in which the carpet area of all existing individual residential tenements does not exceed 80 sq. m."

80 sq m is 861 sq ft of carpet area. If not one flat in your building is bigger than that, your society's redevelopment carries no Inclusive Housing obligation, however large the plot. Most Mumbai society flats — 1 BHK, 2 BHK, and a great many 3 BHKs — sit well below 861 sq ft carpet.

If some flats are larger, the obligation is not all-or-nothing. The regulation scales it: where some tenements exceed 80 sq m carpet, "the obligation to hand over the BUA in the form of IH tenements / plot area would be proportionate to the ratio of BUA of such tenement having carpet area more than 80 sq. m and existing BUA, otherwise required as per this Regulation considering plot area."

Two practical consequences. First, get a flat-wise carpet-area schedule certified before any developer tells you the reservation applies — the answer lives in your own measurement sheet. Second, the test is on carpet area of the existing flats, not on the new flats you are about to receive; enlarging members in the new building does not create an obligation that was not there.

Source: DCPR 2034 (sanctioned), Regulation 15, provisos to clause 2.

Test 3 — which regulation is your scheme running under?

There is a third exit, and it is the widest of all. Regulation 15 lists the schemes that carry no Inclusive Housing obligation at all. If your redevelopment runs under any of these, the question is closed before it opens:

The exemption also covers any housing scheme or residential development where, under other provisions of the DCPR, more than 20% of the Zonal (basic) FSI is already going into residential EWS/LIG tenements — you are not asked to do it twice. Land in an SDZ developed under Regulation 33(8), and land owned by Government or a semi-Government organisation where that body itself carries out the development, are likewise outside Regulation 15.

Source: DCPR 2034 (sanctioned), Regulation 15, final proviso to clause 2.

If it does apply: the two routes, and what 20% means in each

For Greater Mumbai these obligations sit in the Development Control and Promotion Regulations 2034 (DCPR 2034) administered by the Municipal Corporation of Greater Mumbai (MCGM). The rest of Maharashtra follows the Unified Development Control and Promotion Regulations (UDCPR) — a different instrument with different numbers, so do not carry these figures outside MCGM limits. Regulation 15 is read alongside the incentive-FSI schemes most society redevelopments rely on, such as Regulation 33(7) for old and cessed buildings, Regulation 33(9) for cluster and urban-renewal schemes and Regulation 33(10) for slum rehabilitation. Our DCPR 2034 explained guide walks through how those fit together.

Regulation 15 gives the owner or developer a choice of two routes, written as clause 1 "OR" clause 2. The 20% is measured differently in each, which is why the two produce very different numbers on the same plot.

Source: DCPR 2034 (sanctioned), Regulation 15, clauses 1(a)–(d) and 2(a)–(b).

Route 1 has an escape valve: TDR for the FSI you cannot use

Under route 1, the FSI of the surrendered land comes back to the balance plot — but only if there is room for it. If the owner or developer does not want to use that FSI on the same land, fully or partly, Regulation 15(1)(c) makes them eligible for TDR in lieu of the unutilised FSI, on its own formula:

This formula and the route 2 relocation formula below share the same shape — the originating plot's rate on top, the destination plot's underneath — so both produce a larger area at the cheaper destination. What differs is who that helps. Extra area from unutilised FSI is a gain to the developer; extra IH built-up area to hand over is a cost. Both are in the same regulation, and both are easy to quote the wrong way round, so check which one a developer is using before you accept the arithmetic.

Source: DCPR 2034 (sanctioned), Regulation 15, proviso to clause 1(c).

Building them somewhere else, and the 40% sweetener

Route 2 has a proviso worth knowing about. The IH built-up area — that is, 20% of the Zonal (basic) FSI of the plot — "can also be provided at some other location(s) within the same Administrative Ward", provided the BUA handed to MCGM is of equivalent value at that year's ASR. The regulation gives the conversion outright:

Move the obligation to cheaper land and it doubles in area. That is the trade. Where this route is taken, the construction is free of FSI to the extent of 40% of the Zonal (basic) FSI, over and above the permissible BUA of the plot or alternative plot.

Where the flats actually go

The regulation also fixes who gets them, which is useful if a member asks. Of the IH tenements handed to MCGM, 20% are allotted to project-affected persons (PAPs) of vital infrastructure projects, preferably from the same ward. The balance 80% are allotted to EWS/LIG households on outright sale, through the lottery system adopted by MHADA. If MCGM does not require the PAP share within six months of being told the flats are ready, those too may be sold. Sale proceeds are used by MCGM to implement the Development Plan.

Source: DCPR 2034 (sanctioned), Regulation 15, clause 2(b) proviso and clause 2(c)(i)–(iii).

What this means for your society

Most housing-society redevelopments in Mumbai fail at least one of the three tests above, so Inclusive Housing never enters the picture. Here is how to read your own case.

Small and mid-sized society plots

A plot measuring under 4,000 sq m net of road set-back, DP road, existing amenity and reservation carries no EWS/LIG obligation. Your redevelopment maths turns on the ordinary levers instead — Zonal (basic) FSI, the road-width FSI bands in Table 12, premium FSI charged at 50% of the ASR land rate for FSI 1, fungible compensatory area and TDR. Note that permissible FSI is itself computed on plot area excluding land under DP roads, a sanctioned Regular Line, Regulation 16, Regulation 14 amenity plots and Regulation 17 reservations — the same land you deduct for the 4,000 sq m test. The FSI calculator and the additional-area calculator will tell you far more about your entitlement than Regulation 15 ever will.

Large layouts and amalgamated plots

Inclusive Housing becomes a live question in a narrow case: several buildings or plots amalgamated into one layout of 4,000 sq m or more, running under ordinary FSI rather than one of the exempt 33-series schemes, where at least one existing flat exceeds 80 sq m carpet. Then the 20% share reduces the free-sale (open-market) component the developer can monetise. That does not automatically make redevelopment unviable — larger plots usually sit on wider roads, and in the suburbs a road of 27 m and above carries permissible FSI 2.50 against 1.00 on a road under 9 m. Work the feasibility on the actual numbers rather than assuming either way.

Cluster redevelopment (Regulation 33(9))

Cluster schemes are, by design, large — but size does not bring Inclusive Housing with it. Regulation 15 names 33(9), 33(9)(A) and 33(9)(B) in its exemption list, so a cluster scheme carries no IH obligation regardless of how many plots are assembled. Cluster schemes do carry their own rehabilitation, amenity and infrastructure duties, and their own corpus floor of Rs 50,000 per tenement funding ten years of maintenance under Regulation 33(9). Those are the numbers that move cluster feasibility, not Regulation 15. If a cluster is on the table, read our detailed note on cluster redevelopment before you commit.

Cessed and old buildings (Regulation 33(7))

Redevelopment of old and cessed buildings under Regulation 33(7) and 33(7)(A), usually with MHADA and the Mumbai Building Repair and Reconstruction Board (MBRRB) under the MHADA Act, 1976, already carries its own rehabilitation obligations — existing occupants must be rehoused to prescribed standards, with a carpet floor of 27.88 sq m (300 sq ft) and a ceiling of 120 sq m (1,292 sq ft). Regulation 15 expressly exempts 33(7) and 33(7)(A), so no separate EWS/LIG reservation stacks on top. Our guide to DCR 33(7) cessed-building redevelopment explains how the incentive-FSI and rehabilitation side works.

A worked example: putting a number on the 20%

Take a suburban society layout that fails all three exits — it is over 4,000 sq m, it is running on ordinary FSI rather than a 33-series scheme, and some of its flats are above 80 sq m carpet. Here is what Regulation 15 actually costs, route by route. Zonal (basic) FSI in the suburbs is 1.00; in the Island City it is 1.33.

Of those roughly 28 to 32 flats, about six go to PAPs of vital infrastructure projects and the remaining 22 to 26 are sold to EWS/LIG households through the MHADA lottery. On the same plot in the Island City, where Zonal (basic) FSI is 1.33, route 2 would produce 4,800 × 1.33 = 6,384 sq m of basic FSI, so 20% is 1,277 sq m of IH BUA — about 38 tenements at 27.88 sq m carpet.

Why route 2 is usually the cheaper one

Notice what the two routes do differently. Route 1 costs the developer 960 sq m of Mumbai land outright. Route 2 costs construction, and the regulation compensates that too — the developer is entitled to extra BUA in lieu of the cost of building the IH flats, on the regulation's own formula:

Two further details worth holding a developer to. Staircase, lift, staircase-and-lift lobby and other Regulation 31(1) areas are not counted in the BUA handed over, and no premium is charged on them for the IH provision. And amalgamation of IH plots or IH tenements is not allowed — the affordable stock cannot quietly be merged into larger saleable units later.

Source: DCPR 2034 (sanctioned), Regulation 15, clause 2(c)(iv) and notes 1–3; Regulation 30 Table 12 for Zonal (basic) FSI.

The reservation shrinks the free-sale component, which is exactly why builders scrutinise it. But you cannot judge a large-plot offer by gut feel. Run the entitlement, subtract the rehabilitation and any IH obligation, and see what free-sale area remains — that is what tells you whether a developer's generous-sounding additional area and corpus are actually deliverable. Comparing two or more developers on this basis is what our offer comparison tool is built for.

How to confirm the current position for your plot

Three documents settle this. Ask for all three in writing, and keep the replies:

• A net plot-area certificate from your architect — the plot area after deducting road set-back, DP road, existing amenity and reservation. If it is under 4,000 sq m, Regulation 15 is out. Ask for the deductions itemised, not just the total.
• A flat-wise carpet-area schedule for the existing building, certified by the architect and cross-checked against your society's own records. If no flat exceeds 80 sq m carpet, Regulation 15 is out. If some do, you need their built-up areas too, because that is what the proportionate formula runs on.
• A written statement of the regulation the scheme will be sanctioned under. If it is 33(5), 33(7), 33(7)(A), 33(9), 33(9)(A), 33(9)(B), 33(10) or 33(10)(A), Regulation 15 is out by its own terms.

Then run the entitlement through the FSI calculator to see the realistic buildable potential for your plot and road width. If Regulation 15 does apply, get one more thing on paper: which of the two routes the developer proposes — surrendering 20% of the plot area, or building IH tenements to 20% of the Zonal (basic) FSI — and whether they intend to shift the IH built-up area to another plot in the same Administrative Ward. Put the route, the quantum in square metres, and who bears its cost into the Development Agreement. Do not leave it to be discovered at the OC stage, when the regulation lets MCGM withhold occupation for the rest of the project until the IH flats are handed over.

Where to find the official rule

The provision is Regulation 15, Inclusive Housing (IH), in Part III (Land Uses and Manner of Development) of the sanctioned DCPR 2034, published by the Urban Development Department, Government of Maharashtra and administered by MCGM. The sanctioned text is on the MCGM portal under Sanctioned DP 2034 / DCPR. Quote the regulation number when you ask — it is two pages long and your architect can read it to you. Note that many summaries online reproduce the draft DCPR rather than the sanctioned one; the sanctioned text is the only one that binds. Outside Greater Mumbai the UDCPR applies instead, and none of the figures on this page carry across.