Mhada lottery houses too pricey for stipulated income range, say home buyers

Mhada has priced flats for the economically weaker section (EWS) category at ₹30 lakh to 40 lakh, and for the low income group (LIG) category from 45 lakh to ₹1.65 crore. The income criterion for EWS is up to ₹6 lakh per annum and for LIG up to ₹9 lakh per annum. This disparity in price and income criteria makes it impossible for a common salaried person to buy these homes.

Mumbai: The happiness of lower-end and middle-class home buyers after Mhada’s announcement of a lottery for 4,083 houses in Mumbai has dissipated after looking at the discrepancy between the income group categories and the price of the flats.

Rahul Masurkar (name changed) is a lecturer at a private college and earns up to ₹9 lakh per annum ( ₹75,000 per month). As per Mhada rules, he falls in the LIG income group. When he tried to check his home loan eligibility and EMI, he was told by the bank that he could get a loan of up to ₹56 lakh at an EMI of ₹49,800 per month. The price range for LIG flats is ₹45,86,00 to ₹1,65,36,957. (HT PHOTO)

Mhada has priced flats for the economically weaker section (EWS) category at ₹30 lakh to 40 lakh, and for the low income group (LIG) category from 45 lakh to ₹1.65 crore. The income criterion for EWS is up to ₹6 lakh per annum and for LIG up to ₹9 lakh per annum. This disparity in price and income criteria makes it impossible for a common salaried person to buy these homes.

Apart from the EWS and LIG category, where there are 2,790 and 1034 flats respectively, there are 139 flats for the middle income group (MIG) and 120 for the higher income group (HIG). The income criterion for MIG is up to ₹12 lakh per annum and for HIG over ₹12 lakh per annum. Except HIG, which has no upper limit for income, every other category has an upper income limit, which makes it difficult for home buyers.

Rahul Masurkar (name changed) is a lecturer at a private college and earns up to ₹9 lakh per annum ( ₹75,000 per month). As per Mhada rules, he falls in the LIG income group. When he tried to check his home loan eligibility and EMI, he was told by the bank that he could get a loan of up to ₹56 lakh at an EMI of ₹49,800 per month. The price range for LIG flats is ₹45,86,00 to ₹1,65,36,957.

Masurkar said that the flats above ₹1 crore were definitely out of his range, but even buying a flat ranging from ₹67,20,524 to ₹92,79,936 was difficult. “With an EMI, I will have only 25,000 remaining from my salary,” he said. “How does one run a home for an entire month with that much in a city like Mumbai?”

Trupti Joshi (name changed) has similar concerns. A professional who earns less than ₹6 lakh per annum ( ₹50,000 per month), she falls in the EWS category. Her bank was willing to loan her up to ₹30 lakh to ₹35 lakh for 20 years at an EMI of ₹31,000 per month. MHADA’s EWS flats are in the range of ₹30 lakh to ₹40 lakh. “Even if I decided to take a home loan, it is not possible for me to run a family with the remaining amount of ₹19,000,” she said.

For a person in the MIG category who earns up to ₹12 lakh per annum ( ₹1 lakh per month), the prices of the flats range from ₹57 lakh to ₹4 crore, 72 lakhs. The price of a flat at Unnat Nagar in Goregaon is in the range of ₹57 lakh to ₹64,03,330. Flats in Kandivali, Juhu and Dadar are in the range of ₹1,18,14,609, ₹2,79,58,633. The most expensive flats in MIG are at Andheri in the range of ₹3,48,36,739 to ₹4,72,55,372. The same question arises here too: is it possible for a person earning ₹1 lakh per month to buy a flat that costs above ₹1 crore?

When contacted, Milind Borikar, chief officer of Mhada, Mumbai Board was not available for comment.