MHADA Cuts Premium on Redevelopment Projects
The Maharashtra Housing and Area Development Authority (MHADA) has announced a series of measures to expedite the process of redevelopment of MHADA colonies across the city, as many of them are in dilapidated condition. MHADA has agreed to make applicable reduced premium rates for existing ongoing r
Published -
Jun 29, 2020 8:29 AM
The Maharashtra Housing and Area Development Authority (MHADA) has announced a series of measures to expedite the process of redevelopment of MHADA colonies across the city, as many of them are in dilapidated condition. MHADA has agreed to make applicable reduced premium rates for existing ongoing redevelopment projects as well. The authority reduced the rate of premium for redevelopment projects in August last year. However, they were applicable only to new projects. The real estate industry had been demanding the rates should be reduced for existing projects as well to ensure their timely completion. Taking into consideration longstanding demand of developers, MHADA decided to reduce the premium for all existing projects where no-objection certificate (NOC) is yet to be issued by MHADA and where premium is already not paid. The developers will have to pay premium that is linked to ready reckoner rates for getting additional FSI. Currently, this premium is between 20 per cent and 28 per cent for redevelopment of low-income group (LIG) colonies, 45 per cent and 56 per cent for middle-income group colonies, and 60 per cent and 71 per cent for high income group colonies. MHADA has also proposed to allow payment of premium in staggered manner – 20 per cent before getting all permissions and then 80 per cent at the time of issuing of completion certificate. With premium only on FSI that is being used for the market sale component and make the entire FSI used for rehabilitation of existing tenement holders free of cost.
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