MHADA Waives Interest for Redevelopment Projects
In yet another relief for Mumbai developers, the Maharashtra Housing and Area Development Authority (MHADA) waived interest payable on premiums for redevelopment projects under Development Control Rules 33 (5) and affordable housing projects under Prime Minister Awas Yojana (PMAY) scheme from March 25 till December 24, 2020, due to force majeure conditions. “During the said period up to December 26, 2020, no interest will be levied on the regular and default instalments,” said the order signed by MHADA vice president and CEO Milind Mhaiskar. The order said defaulters who failed to pay instalments before March 25 would have to pay regular and penal interest till March 22, and instalments payable during the ninemonth moratorium period will have to be paid within 15 days after the period ends (before January 10, 2021). The concessions are in line with the decisions by the Ministry of Housing and Urban Affairs (MoHUA), and Maharashtra government to treat Covid-19 pandemic as force majeure condition and grant various concessions for nine months from the start of the lockdown period. This is the second big concession given to Mumbai developers after the Maharashtra government reduced stamp duty on property transactions from 5 per cent to 2 per cent till December 31, 2020, and to 3 per cent till March 31, 2021. The cut in the stamp duty is expected to boost demand ahead of Diwali, Navratri and Christmas.
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