Buying a Mhada flat as an investment may not be a smart move. The Maharashtra Housing and Area Development Authority (Mhada) has started a crackdown on those renting out these low-cost flats or keeping them empty to sell at a suitable time. Mhada has said it will confiscate these flats.
The reason, they said, is there is an acute shortage of homes and they want to ensure the affordable houses are bought by those who need them and not by investors. Mhada rules clearly prohibit sale, lease or transfer within five years of purchase.
In a survey conducted by its vigilance department, it was found that 73% of the original buyers did not reside in these flats. Of the 996 flats surveyed in the first phase, 167 were found to have changed hands, while 566 were locked. A mere 163 were occupied by the original buyers.
“We will issue a show-cause notice to these people seeking clarifications,” said Vaishali Wagh, chief public relations officer, Mhada. “We will confiscate these flats and evict the tenants if the owners are found to have violated rules,” she added.
The Hindustan Times had first reported in October last year about Mhada’s intended drive against those who profiteered from their flats.