By Arosh John | Founder – John Real Estate (MahaRERA Reg. No. A51700001835) | Editor-in-Chief – Thane Real Estate News (TREN)
Thane – MMR | October 26, 2025
Mumbai’s leading real estate associations — CREDAI-MCHI, NAREDCO, BDA, and PEATA — met Brihanmumbai Municipal Corporation (BMC) Commissioner Dr. Bhushan Gagrani on October 24, proposing a new 10:10:80 premium payment structure to ease developers’ cash-flow pressure while keeping overall civic revenue unchanged.
What the 10:10:80 Proposal Means
Under the suggested framework:
- 10% of the total premium would be payable at the time of project approval.
- Another 10% upon obtaining the Commencement Certificate (CC).
- The remaining 80% would fall due at the Occupation Certificate (OC) stage.
Currently, developers must pay significant upfront premiums — long before projects generate income — which strains liquidity. The proposed model aligns payment timing with construction milestones, a change developers call revenue-neutral but financially practical.
CREDAI-MCHI President Sukhraj Nahar described it as “a fair and practical approach that aligns payment timelines with actual project progress and cash inflows whilst being revenue-neutral.”
Steering Committee for Continuous Dialogue
A joint steering committee — made up of BMC officers and developer representatives — will meet fortnightly to track policy issues and approvals. The Commissioner will join the monthly review to keep the dialogue active.
This initiative forms part of the civic body’s broader Ease of Doing Business (EoDB) 2.0 agenda, which explores the use of AI-driven plan approval systems to reduce subjectivity and accelerate clearances.
Why It Matters
- Potential benefits: The 10:10:80 model could provide cash-flow flexibility, allowing smaller developers to sustain projects without compromising dues to the BMC.
- Policy continuity: BMC already allows staged premium payments under its instalment facility (extended until September 3, 2025), so the principle isn’t new.
- Sector ripple effect: If implemented, Mumbai’s model may inspire similar reforms across MMR — including Thane, Navi Mumbai, and Panvel — improving project feasibility region-wide.
Developers emphasise that the change would not reduce total payable premiums but defer timing, potentially unlocking stalled projects and quickening construction across the city.
Current Status
The 10:10:80 model is a proposal, not an approved rule. Formal adoption requires an official BMC notification detailing:
- Applicability to new or ongoing projects,
- Payment timelines and interest norms, and
- Coordination with lending and financing conditions.
Until then, existing premium rules remain in effect.
Expert Take – Thane & MMR Implications
If Mumbai formalises this structure, other local bodies may follow. For Thane, a deferred premium model could:
- Improve developer cash flow and project viability,
- Encourage faster completions, and
- Help reduce early-stage pricing pressure on buyers.
In high-growth corridors such as Kolshet, Balkum, Pokhran, and Majiwada, such financial flexibility could accelerate launches and expand mid-segment inventory.
Source: Hindustan Times (October 24, 2025); Times of India (October 25, 2025)
About the Author
Arosh John is a realtor with over a decade of experience, specialising in Thane’s residential and villa markets. He is the Founder of John Real Estate (MahaRERA Reg. No. A51700001835) and Editor-in-Chief of Thane Real Estate News (TREN), a platform dedicated to accurate, data-driven real estate journalism across the MMR.
Disclaimer
This article is for informational purposes only and does not constitute financial or legal advice. Policies and rules may change; readers should verify details through official notifications and consult qualified professionals before acting. All trademarks and names belong to their respective owners.
