The short answer: the money is payable before the Commencement Certificate, the premium can be spread, and the occupancy certificate arrives in proportion to what has been paid. Regulations 2.2.13 and 2.2.14 are the cash flow provisions of the permission chain, and Regulation 2.15 is what happens if the application was not true.
Key takeaways
- Development charges under sections 124A to 124L of the MR&TP Act are deposited before the permission or Commencement Certificate is issued.
- They are calculated per land parcel on ASR rates.
- No development charge on maintenance, internal repairs or strengthening that consumes no additional floor space.
- Full charge on any reconstruction involving demolition and rebuilding.
- Premium charges are also payable before the Commencement Certificate, but may be spread over four or five years at 8.5 percent.
- The occupancy certificate is granted only in proportion to the premium payments made.
- The first instalment cannot be below Rs 50 lakh in A, B and C class corporations, or Rs 25 lakh elsewhere, unless the Authority reduces it as policy.
- A permission obtained on a false statement can be revoked, the work becomes unauthorised, and no compensation is paid.
Development charges
Chapter 2, Regulation 2.2.13, Development Charges* requires charges under sections 124A(1) to 124L of the Maharashtra Regional and Town Planning Act, 1966 to be deposited with the Authority before the development permission or Commencement Certificate is issued. They are calculated for the area of each land parcel included in the permission, on the rates in the Annual Statement of Rates.
The provisos are where the practical answers live.
| Situation | Development charge |
|---|---|
| Revised permission, no development carried out under the earlier one and it lapsed | Only the difference, if any, is levied and recovered |
| Maintenance work, internal repairs, or strengthening an existing building with no additional floor space consumed | Not recovered |
| Reconstruction involving demolition of the existing building and a new one | Levied in full |
| A co-operative society authorised by MHADA to reconstruct an old or dilapidated building | Not recovered, provided FSI does not exceed the existing or permissible figure whichever is lower and it accommodates existing tenants only |
| The same society, but consuming additional FSI and accommodating members beyond existing tenants | Proportionate charges recovered |
| No development carried out and permission lapsed, or cancelled at the owner's request | Charges paid are adjusted against a future permission |
| Area transferred to another Authority's jurisdiction after charges were collected | The provisos above apply mutatis mutandis |
The MHADA exemption is the one worth flagging for anyone modelling a society-led redevelopment. It is conditional on two things simultaneously: FSI within the lower of existing and permissible, and existing tenants only. Add a saleable component and the exemption becomes proportionate rather than complete.
Premium, and the instalment schedule
Chapter 2, Regulation 2.2.14, Premium Charges and Fire Infrastructure Charges* covers two charges with quite different treatment.
Premium charges are paid to the Authority before the permission or Commencement Certificate. The Authority deposits the Government's 50 percent share in a specified head, and keeps its own half in a separate account, to be used for civic amenities and infrastructure. In a Regional Plan area, 100 percent goes to Government through the district Town Planning and Valuation offices.
Premium, except premium leviable under Chapter 5, may then be paid in instalments at 8.5 percent per annum on the reducing outstanding balance.
| Option | Schedule |
|---|---|
| Option 1, buildings below 70.0 m | 10 percent initially, then 22.5 percent at each of 12, 24, 36 and 48 months |
| Option 1, buildings of 70.0 m and above | 10 percent initially, then 18 percent at each of 12, 24, 36, 48 and 60 months |
| Option 2 | 20 percent at development permission or Commencement Certificate, 80 percent at occupation certificate |
Four conditions attach, and one of them is the whole point.
Banded by condition
- Interest8.5 percent per annum on the reducing outstanding balance
- SecurityPost-dated cheques for each instalment with interest due, drawn on a scheduled bank, as per the scheduled date of payment
- OccupancyThe Occupation Certificate shall be granted in proportion to the payments made
- Floor on the first instalmentNot less than Rs 50 lakh in A, B and C class Municipal Corporations and Rs 25 lakh elsewhere. The Planning Authority may reduce that floor as a policy on local conditions, in which case the balance is apportioned across the remaining instalments
Source: Chapter 2, Regulation 2.2.14(i), UDCPR as updated 30 January 2025
"The Occupation Certificate shall be granted in proportion to the payments made" is a clause that reaches past the developer and lands on buyers.
A developer on Option 1 who has paid 55 percent of the premium by the time the building is finished has, on the face of this note, a proportionate entitlement to occupancy rather than a full one. That is the same mechanism as a part occupancy certificate, but triggered by an unpaid balance rather than by staged construction.
Buyers rarely see the premium schedule, and the sale agreement does not usually mention it. The observable symptom is a completed building handing over in tranches with no construction reason for it.
Option 2 removes the issue entirely by putting 80 percent at the occupation certificate, and it is the option that aligns the developer's cash flow with the buyer's handover.
Fire infrastructure charges get one line: they shall be decided by Government from time to time. The UDCPR sets no rate, so this is a live figure to check with the Authority rather than a number to read off the regulation.
Revocation
Chapter 2, Regulation 2.15, Revocation of Permission is four lines and it is severe.
Without prejudice to the powers of revocation under section 51 of the Act, the Authority may, after giving the opportunity of being heard, revoke any development permission where it notices that there had been any false statement or any misrepresentation of material fact in the application on which the permission was issued.
Thereupon the whole work carried out in pursuance of such permission shall be treated as unauthorised. And under clause (ii), no compensation shall be paid.
Three things about that provision are worth being precise on, because it is often described more loosely than it is written.
It is not a penalty for building differently from the plan. That is the deviation and enforcement machinery elsewhere in the chapter. Regulation 2.15 is about the application: what was stated to obtain the permission.
The trigger is a false statement or a misrepresentation of material fact. Materiality does the work, and the Authority must give a hearing before acting.
And the consequence is retrospective in effect: the whole work becomes unauthorised, not the part that followed the discovery. A structure built entirely in good faith by a contractor, financed by a lender and sold to buyers, sits on a permission that can be unwound because of what the application said years earlier.
For a lender or an institutional buyer, that makes the ownership and area documents under Regulation 2.2.3 a diligence item in their own right, rather than a formality that was cleared at the start.
What the register shows
MahaRERA does not publish development charges, premium schedules or fire infrastructure charges. There is no field for any of them.
What it does publish, free, and what is closer to the point than the charge itself, is the project account and cost block: the estimated cost of construction, the cost of land, and the amounts filed against the RERA account rules. It also publishes the commencement certificates on record and the extension history with the promoter's own stated reason for each extension.
A premium paid in instalments is not visible. A project whose handover has stretched across several extensions with reasons that do not describe construction is visible, and it is free to read.
Related rule cards
- From application to Commencement Certificate
- Completion, occupancy and part OC
- Sanctioned plans online, and the permission's clock
Where the filings come in
Charges and revocation sit with the Planning Authority.
The register carries the outcome, free at reragenie.com: the filed land area, the buildings and their floors, the project cost and bank account details as filed, the commencement certificates, the certifying professionals, the extension history with reasons, and any complaints or litigation with case numbers.
ReraGenie's project analysis, Rs 2,999 for one project, reads the full filing and the documents behind it. The area consolidated report covers a whole micro-market at Rs 2,999 for the first project and Rs 1,999 per additional one.
Source: Unified Development Control and Promotion Regulations for Maharashtra, UDCPR as updated 30 January 2025. Sanctioned under the Maharashtra Regional and Town Planning Act, 1966.
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