The official emphasized that these projects, foundation stones of which were laid by Prime Minister Narendra Modi, are crucial and carry significant costs.

Besides, the civic body has sought to include its big budget projects also under VUTP.

The UDD is yet to make a decision, the official added.

The BMC confirmed that it has amassed Rs 5,000 crore by charging developers an additional 1 per cent development fee under the VUTP provision.

Notably, in June 2019, Urban Development Department included all metro projects under VUTP, mandating that local bodies within whose jurisdiction the metro lines fall must contribute 25 per cent of the metro project costs.

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Therefore, the 1 per cent development fees collection was permitted to the urban local bodies including Pune, Nagpur where metro projects are ongoing.

As many as 14 projects are under VUTP, primarily metro projects, with seven of them—Metro Line 3 (Colaba-Bandra-SEEPZ), Line 2A (Dahisar-DN Nagar), 2B (DN Nagar-Mandale), Line 4 (Wadala-Kasarvadavali), Line 7 (Dahisar East-Andheri East), 7A (Andheri East-CSMIA), and the Monorail—falling within BMC’s jurisdiction.

According to BMC, it has already paid Rs 2,000 crore to the Mumbai Metropolitan Region Development Authority (MMRDA).

For the remaining Rs 3,000 crore, the BMC has urged the UDD to permit the reservation of 50 per cent of the VUTP funds for its own projects.

Meanwhile, sources from the MMRDA indicated plans to approach both the UDD and BMC to return the remaining funds, arguing that all the money collected under VUTP was intended for MMRDA-initiated projects.

The MMRDA has secured total funding of Rs 1,03,622 crore for the development of 37 projects in the Mumbai Metropolitan Region (MMR).