Mhada considers scrapping 11% reservation for EWS, LIG homes for MP, MLAs

Mhada may cancel the 11% housing reservation for elected officials and govt employees in EWS and LIG categories due to high salaries exceeding income limits.

Mumbai: The Maharashtra Housing and Area Development Authority (Mhada) is considering cancelling the 11% reservation for elected representatives, state and central government employees, and Mhada employees under the Economically Weaker Section (EWS) and Low-Income Group (LIG) categories. This move stems from concerns that their salaries exceed the income criteria set by Mhada.

The provision for this reservation, introduced under Mhada rules framed in 1981, has come under scrutiny as the taxable income limits for EWS and LIG applicants — ₹6 lakh per annum and ₹6-9 lakh per annum, respectively — are significantly lower than the salaries of government officials and legislators. A committee was established to examine the issue and has recommended changes to the state government.

The base salary for a Member of Parliament (MP) is ₹1 lakh per month, with an additional constituency allowance of ₹70,000 and other perks. Similarly, Maharashtra’s MLAs earn ₹2.5 lakh per month plus benefits, placing them well above Mhada’s income classifications.

Earlier this year, Mhada’s Mumbai Board held a housing lottery for 2,030 units, of which 33 were reserved for MPs, MLAs, and Members of the Legislative Council (MLCs). Notably, 15 of these homes were earmarked for the EWS and LIG categories, but they failed to attract sufficient applications.

Mhada sources have revealed that a proposal has been submitted to scrap the reservation for elected representatives and government employees in the EWS and LIG categories. However, the reservation for Middle-Income Group (MIG) and High-Income Group (HIG) categories — defined as ₹9-12 lakh and above ₹12 lakh per annum, respectively — will remain unchanged.

This decision is motivated by the lack of applicants from elected representatives in the lower income brackets. In contrast, homes reserved for higher income categories have seen significant interest. For instance, farm leader Raju Shetti of the Swabhimani Shetkari Sanghatana applied for a home in Powai this year, and former Union Minister Bhagwat Karad was an applicant in 2023.

The proposed changes require approval from Mhada’s internal authorities as well as the state government. However, these amendments are likely to be finalised only after the formation of a new government in Maharashtra.

Once approved, the homes previously reserved for elected representatives and government employees under EWS and LIG will be reallocated to other reservation categories and the general public. Unsold units from the earlier housing lottery will also be carried forward to future draws, potentially increasing opportunities for applicants in these categories.