“Mhada makes negligible profits in the business of providing affordable flats. Its rates are already 40 per cent less than the commercial real estate market,” Chavan told reporters on Monday.
He said he has asked Mhada to create a land bank for constructing more housing. “I’m told that 2.25 lakh houses are locked in Mumbai, and this is what is creating a shortage of housing,” he said.
He, however, did not explain whether Mhada would be able to sell flats at rates lower than the current prices, especially after the agency buys land at commercial rates.