Good news for MHADA lottery winners! Late Fee charges reduced by housing association

Instead of an 11 per cent charge, now the late fee charges will be levied as per Reserve Bank of India ‘base rates’ and 0.5 per cent, one per cent, two per cent late fee charges by the Maharashtra Housing and Area Development Authority.

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Maharashtra Housing and Area Development Authority (MHADA) had recently slashed down the prices of its houses by 25 to 30 per cent. In addition to that, now the housing board has declared that it will lower down the late fee charges and so, the lottery winners have been hugely benefited by MHADA’s decision.

MHADA President Uday Samant has informed that interest on 11 per cent interest charged as late fee has been reduced as it put a huge financial burden on the lottery winners. Therefore, instead of an 11 per cent charge, now the late fee charges will be levied as per Reserve Bank of India (RBI) ‘base rates’ and 0.5 per cent, one per cent, two per cent late fee charges. 

In order to verify the lottery winners, MHADA issues a certificate and accordingly, the winners have to pay 25 per cent of the total amount within 45 days of issuing the certificate. Whereas, the remaining 75 per cent has to be paid within the time allotted by MHADA. If the winners are unable to pay the amount within the allotted time, they are given an extension of 195 days or the winner is forfeited from acquiring the house. 

Also Read: MHADA Not To Sell Shivaji Park's House, Sends A Show-Cause Notice To Tenants

However, it was learned that the extension was not good for the customers as they had to pay extra 11 per cent of the remaining 75 per cent total amount as late fee charge. Due to which, the winners were forced to pay almost ₹40,000-₹1,00,000 as late fee charges and thus, they reached out to MHADA and requested them to lower the rates of the late fee charges. 

Speaking about the lowered rates, Samant stated,

Accordingly, the lottery winners will have to pay zero interest if they pay the amount within the 15 days of extension. They will have to pay the base rate and 0.5 per cent late fee if they pay within 45 days. If the winners pay the amount within 65 days, then they’ll have to pay the base rate and one per cent interest. Further, if they pay within 75 days, then they have to pay two per cent late fee along with the base rate. The base rate has been fixed at 6.5 per cent and the late fee charges vary from 0.5 per cent to two per cent.”

The decision was approved by MHADA at the meeting held on Friday and the revised late fee charges will be implemented now onwards which will be a good news for the lottery winners.

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