Fadnavis assures of bringing down high MHADA interest charges to BMC levels

Deputy Chief Minister Devendra Fadnavis has assured developers in Mumbai that the government will review the 18% compoundable interest charged by Maharashtra Housing and Area Development Authority (MHADA) and bring it in line with charges by the Brihanmumbai Municipal Corporation (BMC). Fadnavis also stated that the government is considering reducing high premiums charged in the Mumbai Metropolitan Region (MMR).

Mumbai: Deputy chief minister Devendra Fadnavis on Saturday assured developers that the government will look into their demand to lower the 18% compoundable interest charged by Maharashtra Housing and Area Development Authority (MHADA) on instalments and premium payments and bring it on par with the Brihanmumbai Municipal Corporation (BMC) charges.

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Fadnavis was speaking on the second day of the three-day Homethon 2023 home expo organised by the National Real Estate Development Council at the Jio Convention Centre.

Fadnavis stated that the government would soon review the matter and ask MHADA to submit a proposal so that the current rate of 18% of compounded interest on payments would be brought down to the rates charged by the BMC. He was responding to a demand made by Sandeep Runwal, president, NAREDCO Maharashtra.

“I was surprised to know that MHADA is charging such high interest. I think it is absolutely not right to charge so much interest. It must be on par with the bank interest levels. On NAREDCO’s representation, I will ask MHADA to submit a proposal and it should be on par with BMC charges. There should be the same regulation in both the organisations,” he said.

Reacting to the other key demand to reduce high premiums charged in MMR, Fadnavis said that it was always under genuine consideration of the government, but it would be difficult to say when that decision would be taken. He said the government would do whatever was needed for the betterment of the real estate industry and it will not hesitate in taking decisions that will be passed on to the home buyers.

Fadnavis, who held the housing portfolio before NCP’s Ajit Pawar joined the government, said, “After Maharashtra started MahaRERA, the entire real estate industry has been transformed and the faith of small buyers in the industry has increased a lot. The developers following the MahaRERA rules have created a genuine market for the buyers and created a level-playing field. Many players from the corporate and non-corporate world are entering the sector with ethical values,”

MHADA vice president Sanjeev Jaiswal said, “Reduction in premiums if approved by the government would definitely give an impetus to the redevelopment projects both under Regulation 33(5) and 33 (7) and 33 (9). However, at the same time an in-built check mechanism should also be in place so that developers who avail of the premium benefit complete the project within the time frame and also a mechanism to curb trading of the Intimation of disapproval or Letter of Acceptance after availing the premium reduction incentive.’’