MHADA to link lease rent to ready reckoner rates
Mumbai: In a move that is likely to affect thousands of tenants paying nominal lease rent, the Maharashtra Housing and Area Development Authority (MHADA) has proposed to link lease rent on its plots to the ready reckoner (RR) rate of the locality concerned
Mumbai: In a move that is likely to affect thousands of tenants paying nominal lease rent, the Maharashtra Housing and Area Development Authority (MHADA) has proposed to link lease rent on its plots to the ready reckoner (RR) rate of the locality concerned.
Ready reckoner rate, also known as circle rate, is the minimum price at which a property has to be registered in case of its transfer. The ready reckoner rates are fixed by the government considering the real-time appreciation of the land prices and are close to the market rates prevalent in the area. Meanwhile, the RR rates are also likely to increase by 10% from April 1.
This means that tenants living in MHADA colonies will have to pay a lease rent based on the RR rates at the time of the lease renewal. The city has 114 MHADA layouts, including colonies like Pant Nagar in Ghatkopar, Tilak Nagar in Chembur, Gorai, Dahisar, Bandra East.
Milind Borikar, chief officer of the Mumbai Housing and Area Development Board, said, “We want to bring more objectivity in lease rents and have proposed to link it to ready reckoner rates. This will change the lease rent structure in Mumbai.”
The proposal to increase the lease rent was cleared by the authority in February this year based on resolutions passed by different MHADA boards and government GRs. The proposal said every five years, the lease rent should be reviewed and leases should be renewed in tranches of 30 years for 90 years.
According to the proposal, in the city and areas outside Greater Mumbai, the annual lease rent for residential individual plots and housing society plots ranging from 25 square metre to 50 square metre will increase by 1% and will be calculated at 25% of the RR rate during the renewal. For MHADA plots above 50 square metre, the lease rent will be increased by 2.5%.
For commercial establishments like shops, offices, cinemas, shopping centres, petrol pumps, and vegetable and fruit markets, the lease rent will increase by 5%. For socio-cultural, educational and religious organisations like balwadis, primary and secondary schools, colleges, playgrounds, and gardens, it will increase by 0.5%.
The proposal has also revised the penalties on transfer of the MHADA land without prior permission of the authority from 55% to 75%.
On the other hand, nearly all political parties have opposed the move.
BJP MLC Prasad Lad, who once headed the Mumbai Repairs and Reconstruction Board, said, “Deputy chief minister Devendra Fadnavis has said that he will try to help most Mumbaikars. I am also demanding the MHADA premium for redevelopment be reduced and lease rent be constant.”
Naresh Mhaske, spokesperson of Shiv Sena (Eknath Shinde) said, “We cannot do anything that will increase the hardships for people.”
Sachin Sawant, general secretary, Maharashtra Congress Committee, said, “The MHADA is supposed to provide housing at low cost. They are supposed to give mass housing. This is not in tune with their policy. They are not supposed to earn profits.’’
Voicing the same, Shiv Sena (UBT) MLC and deputy leader Manisha Kayande said, “People who stay in MHADA flats seek affordable housing. In case, they make it on par with ready reckoner rates, residents will not be able to afford it.’’
“MHADA is not a profit-making body. These institutions are to serve the people. The government will burden people if they link lease rents to the ready reckoner rates,” NCP spokesperson Clyde Crasto said.