A proposal by Dynamix Balwas Group at Turf Estate in Mahalaxmi has become the first to get government clearance under the cluster development policy.

The Chief Minister has approved the proposal under the cluster policy for redevelopment of old and dilapidated buildings spread over one acre of land.

Of over 20 proposals submitted until now, the one by the DB Group has the least density of existing tenants, with merely 135 staying in single-storey structures needing rehabilitation. The developer gets to exploit more than five acres (22,000 sq m) of prime land overlooking the Mahalaxmi Racecourse and set up real etate worth hundreds of crores.

A major portion of the plot is government leasehold land. Under the cluster policy, it will now be sold to the developer at 25 per cent of the ready reckoner rate. After demolishing the existing structures, the developer will construct a 15-storey commercial building to rehabilitate the tenants. It will make its profit by constructing a 22-storey residential building as well as a 15-storey commercial tower.

The developer also proposes to build a five-level parking facility for 385 cars that will be handed over to the municipal corporation for public use. In return, the developer will be given an additional floor space index (FSI) to exploit.

“The proposal by DB Group was the only one that was crystal clear. The rest have been kept pending as issues still have to be sorted out,” said TC Benjamin, principal secretary for the state urban development department.

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