Maharashtra govt boon to builders: No need for low-cost homes on small MHADA plots

Mumbai city news: A government resolution (GR) issued by the state says housing stock will be mandatory only for plots that are larger than 4,000 square metres

In a move that will reduce the stock of low-cost homes, the state has exempted builders from allotting space for low-cost homes on Maharashtra Housing And Area Development Authority (MHADA) colonies undergoing a revamp, if they occupy an area of less than 4,000 square metres.

Senior MHADA officials said this step was necessary as the revamp of MHADA colonies had been stalled. (HT File Photo)

Instead, builders only have to pay MHADA a premium amount as compensation. As such plots form the majority of spaces in the city, this comes as a blow to the city’s homebuyers.

A government resolution (GR) issued by the state government says housing stock will be mandatory only for plots that are larger than 4,000 square metres.

Such projects will get 4 floor space index (FSI), of which 3 will be used to rehabilitate tenants and building sale component. The remaining should to be used to create affordable houses, which will then be handed over to MHADA, which will pay construction costs for its share.

Senior MHADA officials said this step was necessary as the revamp of MHADA colonies had been stalled.

“The revamp could not move forward as the compulsory housing scheme was making projects unviable,” said an official who did not wish to be identified.

“MHADA residents were left in the lurch owing to this. Hence, the amendment was necessary,” he said.

In 2010, the MHADA board led by its then chairman Amarjeet Singh Manhas faced shrinking MHADA land stock. It decided that some of the new houses built in MHADA colonies would be handed over to the housing body, which it would then sell at affordable rates.

However, this stalled revamp as builders promised vast amounts of space and huge funds to MHADA tenants.Their calculations went haywire and the whole process suffered.

Manhas condemned the decision, saying it came as a blow to the concept of affordable housing. “This government just pays lip service for affordable houses,” he said.“MHADA colonies could have created a huge stock of low-cost houses, which the government has very cleverly diluted. There are few plots of more than 4,000 square metres and hence we will get few houses,” he added.