MHADA Proposes To Remove 11% Housing Quota for Politicians & Government Employees

The Maharashtra Housing and Area Development Authority (MHADA) is considering cancelling an 11% reservation in its housing schemes. This reservation applies to elected officials, state and federal employees, and Mhada personnel under the Economically Weaker Section (EWS) and Low-Income Group (LIG) categories. 

Concerns have been raised that the salaries of these groups are more than the income limits set by Mhada. For EWS applicants, the annual income limit is INR 6 lakh. For LIG, it is between INR 6 lakh and INR 9 lakh. It has been noted that these limits are much lower than the salaries of public servants and lawmakers. 

A Member of Parliament (MP) earns a base salary of INR 1 lakh per month. MPs also receive a constituency stipend of INR 70,000 and other benefits. Similarly, Maharashtra’s Members of the Legislative Assembly (MLAs) earn INR 2.5 lakh per month, excluding bonuses. These figures far exceed Mhada's income thresholds. 

Earlier this year, the Mumbai Board of Mhada held a housing lottery for 2,030 apartments. Among these, 33 units were reserved for members of the Legislative Council (MLCs), MPs, and MLAs. Of these, 15 units were allocated for EWS and LIG categories. However, there were not enough applications for these homes. 

The 1981 Mhada rules introduced this reservation. A committee was formed to review the issue and recommend changes. The committee has submitted its suggestions to the state government. 

However, the reservation for Middle-Income Group (MIG) and High-Income Group (HIG) categories will remain unchanged. The income limits for these groups are INR 9–12 lakh and more than INR 12 lakh annually, respectively. 

There is a high demand for properties in the MIG and HIG categories. On the other hand, there has been low interest in the EWS and LIG categories among elected officials. 

As per sources, a proposal has been made to cancel the EWS and LIG reservations for public servants and elected officials. The proposed changes need approval from both the state government and Mhada’s internal authority. The changes are not expected to be formalised until after the formation of the new government. 

Once approved, the housing units reserved for public servants and elected politicians under EWS and LIG will be made available to the general public and other reservation categories. Unsold units from the previous lottery will also be included in future housing draws.