MHADA frames new policy for sale of 11,184 vacant flats across state

MHADA in Maharashtra has introduced a new policy to sell its unsold flats, including options for bulk sales and renting to organizations. The policy aims to generate funds for MHADA's housing projects.

MUMBAI The Maharashtra Housing and Area Development Authority (MHADA) has framed a new policy for the sale of 11,184 flats that are unsold in its regional boards. Under this policy, MHADA will tap options of bulk sale, as well as renting vacant flats to organisations.

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Sanjeev Jaiswal, CEO, MHADA had formed a study group, which submitted a report stating that the policy has been determined for the sale of old vacant tenements, and according to this, the regional boards of MHADA have been directed to take immediate action for the sale of vacant tenements.

Due to the funds available through this policy, various housing projects of MHADA will get more momentum. In the policy specifications laid down by the authority, the divisional boards are directed to submit proposals to the government for relaxation of certain conditions for the option of direct sale of flats for approval.

Individuals, organizations, government, semi-government employees, and MHADA employees, who are interested in buying 100 or more flats in bulk can be offered a discount on the price of the flats under this option.

In rent purchase and sale by installments, the organization can be appointed on terms and conditions based on agency fees through tender or expression of interest (Expression of Interest). In this option, the agency appointed to sell the tenements will be responsible for paying all the amounts due to MHADA, along with suitable bank guarantees. It has been stated that it is necessary to make such an agreement. While adopting the said option, instructions have also been given to look after the interest of MHADA, the spokesperson said.

The third option in the policy is to rent out flats for private companies, government-semi-government institutions, banks, charitable institutions, hospitals, educational institutions, and employees of contractors implementing large projects of government, and unsold flats/slums can be distributed to the divisional boards on rent basis as per their demand.

In this option, instructions have been given that tenement should not be given individually on a rent basis. The period of renting tenements will have to be kept for three years, and it can be extended for another three years.

In the policy of selling vacant tenements by auction method in this option, after reviewing the vacant tenements for lack of a sale and evaluating them by the official valuer or government town planner, these flats can be sold by auction by inviting tenders in ‘as is condition’. It has been decided to adopt the same method for the sale of plots unsold by MHADA.

The regional boards will be able to appoint experienced and leading marketing agencies/real estate agencies in the field through tender through the expression of interest or directly from proposals received on commission and agency charges. The appointed organization needs to do proper advertising, branding, marketing, etc. to sell maximum flats in minimum time. For the sale of tenements, if a nearby developer proposes to sell the flats of the authority along with the developer’s project, it can be covered. The authority is spending crores of rupees for the maintenance of these vacant tenements, taxes, water and electricity bills, maintenance

This new policy will help generate funds for MHADA, which has been vacant for the last 10 years.