Politics
Thane Referendum on Development Impact Fee: New Homebuyers in Eastern Wards Pay Levy While Central Areas Access Allocated Infrastructure Funds
Voters in Thane decide July 15 on a measure that would charge builders a fee on projects over 500 square meters to support road and drainage work in designated wards starting 2027.
How we reported this
The Thane Municipal Corporation ballot measure would require developers of residential buildings larger than 500 square meters in the eastern wards to pay a one-time impact fee equal to 3 percent of project value. Proceeds would flow into a dedicated account for local road widening and drainage upgrades in those same wards, according to the draft notification issued by the corporation on June 12.
Who Faces the Charge and Who Receives the Projects
Builders and buyers of new units in Wagle Estate and Kapurbawdi would cover the fee at the time of occupancy certificate issuance. Existing residents in Naupada and Jambli Naka would not pay directly yet stand to benefit if the funds improve drainage along Ghodbunder Road and the Eastern Express Highway corridor. The legislation states that the fee cannot exceed 3 percent and must be spent within the ward where the project is located.
Local advocates note that the change targets only new construction above the size threshold, leaving smaller redevelopment projects and single-family homes unaffected. Policy analysts say this structure means established homeowners in central Thane avoid any immediate cost while new buyers in outer wards absorb the levy as part of their purchase price.
Budget Figures and Expected Timeline
The corporation's 2025-26 budget papers project 85 crore rupees in annual collections if the measure passes at current permit volumes. Those figures rest on 2024-25 data showing 142 building permissions granted for projects exceeding 500 square meters across the eastern wards. If approved, the first collections would begin in January 2027, with quarterly public reports required on fund disbursement.
The government says the policy will direct all revenue to ward-level works listed in the annual action plan, including specific stretches of road near Mulund and Bhiwandi borders. No portion may be transferred to the general municipal fund under the draft rules.
Voters will see the measure on the July 15 ballot alongside two other local questions. The corporation has scheduled ward-wise information sessions through July 10 at the Thane Municipal Corporation headquarters and at community halls in each affected ward.