MHADA to appoint agency to clear inventory

MHADA in Mumbai to appoint private agency to sell 11,000+ unsold apartments, recover ₹3,114 crore investment, offering discounts and payment plans.

Mumbai: The Maharashtra Housing Area Development Authority (MHADA) has decided to appoint a private agency to sell over 11,000 apartments in its inventory and recover an investment of ₹3,114 crore.

HT Image

After taking charge as MHADA vice president in June 2023, Sanjeev Jaiswal conducted a review of the authority’s finances, which revealed that unsold inventory comprising 11,184 flats and 748 plots was one of the key reasons behind its cash crunch. He then formed a committee to suggest measures to clear the inventory and recover the investment. In November 2023, the committee suggested five measures including the appointment of a private agency to sell the flats, attractive discounts on purchase of 100 or more flats, leasing out unsold apartments to organisations and auction, which were accepted by MHADA.

The agency will be chosen via bidding and paid around 5% commission for the flats. Buyers who purchase apartments through the agency will have to pay 25% of the price as down payment and the rest in equal monthly instalments.

MHADA made various attempts to clear the unsold inventory in the past, but without much success, said an official. “In Virar-Bolinj, flats were offered without lottery on a ‘first come first basis’. But still thousands of flats have remained unsold for years and investment worth thousands of crores remains stranded. We are hoping the private agency that will be appointed will help us recover the money,” he said.