The Maharashtra Housing and Area Development Authority (MHADA) has unveiled a significant reduction in penal interest rates for delayed payments of installments related to various premiums required for Building Permission in MHADA's redevelopment projects. This policy change, aimed at providing relief to developers, lowers the previous annual interest rate of 18% to a more manageable 12%. The announcement came from Mr. Sanjeev Jaiswal, Vice President, and CEO of MHADA.
Response to Deputy Chief Minister's Concerns
A Free Press Journal report mentioned that the decision to revise these penal interest rates follows growing concerns expressed by Maharashtra Deputy Chief Minister Devendra Fadanvis regarding the substantial development premiums imposed by MHADA on housing projects. During his recent visit to the National Real Estate Development Council's property exhibition, Mr. Fadanvis emphasized the urgency of reducing the penal interest rates to ease the financial burden on developers who face delays in meeting these charges.
Swift Action and Proposal Drafting
Responding to the Deputy Chief Minister's concerns, Mr. Jaiswal wasted no time in instructing the relevant officers to conduct a comprehensive review and take the necessary actions to implement this change. As a result, a proposal was swiftly drafted to reduce the interest rate on late payments of installments related to various premiums from 18% to the newly proposed 12%, specifically for redevelopment projects within MHADA's jurisdiction.
MHADA's Expansive Authority
It's crucial to note that the Maharashtra government has granted MHADA the status of a development authority, thereby entrusting it with control over 114 layouts in the Greater Mumbai region and the authority to regulate land use. In addition, MHADA holds the responsibility of processing permissions for the redevelopment of aging MHADA properties through three distinct departments at its headquarters: the Layout Approval Section, the Building Permissions Department for the Greater Mumbai area, and the Urban Housing Scheme, which operates under the Prime Minister's Housing Scheme.
Promoting Development in a Supportive Environment
Operating in compliance with the provisions outlined in the Maharashtra Region and Town Planning Act of 1966, the Building Permissions Department has taken this progressive step to reduce the penal interest rate on late payments of installments for Building Permission premiums in redevelopment projects. This move aims to foster a more conducive environment for developers while facilitating the continued development and rejuvenation of housing projects under MHADA's purview
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