State Considers Price Cap on 20% of EWS and LIG Housing Stock | Mumbai News

MUMBAI: In a bid to prevent developers from charging exorbitant rates, the Maharashtra Housing and Area Development Authority (MHADA) has proposed a ceiling on the price of housing stock and amenities in projects targeted at the economically weaker section (EWS) and lower income group (LIG) in all housing projects across the state. The proposal has been sent to the urban development department, currently headed by chief minister Eknath Shinde.

In 2020, the Maharashtra government introduced the Unified Development Control and Promotion Regulations (UDCPR) for the entire state. It is applicable to all construction and development activities on land, except areas under Municipal Corporation of Greater Mumbai, MIDC, NAINA, Jawaharlal Nehru Port Trust, hill station municipal councils and ecologically sensitive or fragile regions.

As per the regulations, if a plot of land is zoned for residential purposes and is 4,000 sq m or more, at least 20% of the area must be allocated to affordable housing stock (EWS) and LIG. However, since the implementation of UDCPR, there have been regular complaints from beneficiaries who were asked to pay prices equal to the open market prices, defeating the very purpose of generating affordable and inclusive housing stock.

These tenements are sold by the developer after receiving the allotment list from MHADA and the developer is supposed to allot the units at the construction cost mentioned in the annual rate schedule issued by the Inspector General of Registration, with an additional cost of 25%, which means 125% of the price. “However, at the time of payment and signing of the agreement, it has been found that the developers increase the prices, demanding additional amount for the amenities provided, which should not be the case,” said a senior government official.

Hence, it has been proposed to cap the additional charge at actual cost or 5%, whichever is lower. In case of allotment projects, the landowner or developer has to share the required land area with MHADA. “Developers give us land that is undesirable or unsaleable — either fragmented or scattered, under high-tension cables or along railway lines. To curb such practices, we have proposed that MHADA should be given contiguous plots and NOC of MHADA should also be secured before the project starts and the local municipal body approves it. This will help us identify which plot we will get and plan the affordable housing scheme accordingly,” the official said.