Maharashtra Housing and Area Development Authority (MHADA) has passed the proposal on November 10 stating that now in four installments builders can pay the premiums they owe for the redevelopment of old Maharashtra Housing and Area Development Authority colonies.
After a slow down in the real estate industry, the Maharashtra Chamber of Housing Industry had asked for the payment of premiums to be done in installments. Previously for 56 MHADA colonies in Mumbai, MHADA was to ask for flats in redevelopment schemes, but this year, it changed its policies and asked for premiums on redevelopment instead.
“The MCHI had made a request to pay premiums in installments. We are expecting a huge revenue from premiums on a redevelopment of MHADA buildings. Hence we passed a resolution allowing payment in four installments,” According to MHADA chief Milind Mhaiskar.
On November 11 state housing department approved the move which was informed by MHADA. The difference between the first and last installments should not be more than three years, and penalties will be levied for default, told MHADA.
A prominent builder said on condition of anonymity, “Demonetisation has led to a severe slump in the real estate industry. Lots of flats are lying unsold in Mumbai. Many builders who redevelop old MHADA buildings are facing a crunch. We are happy MHADA is allowed us to pay premiums in a phased manner.”