Maharashtra Govt issues guidelines for MHADA works; here's what it will change

Mumbai: The state government on Thursday released guidelines regarding administrative approval, technical sanction and tender process of works under Maharashtra Housing and Area Development Authority (MHADA). As per the government resolution issued by the Housing Department Undersecretary Ravindra Khetale, “No contract shall be executed unless the administrative approval and technical sanction have been obtained in a statement of the delegation of powers.”

The state government's approval is necessary for works costing more than Rs50 crore to be undertaken by MHADA and regional boards under its jurisdiction before giving an administrative and financial nod, and also for bids.

It is necessary that orders with regard to the release of tenders and administrative and technical directives be issued at the level of a competent officer. The said directive will have to include detailed estimates of development works, estimated project cost and expenditure.

Further, in order to avoid delays due to time and cost overruns, it will be necessary to complete development works in a given timeframe. There should be a mention of the defect liability period in the bid document to maintain the time schedule and thereby ensure the completion of works in a stipulated period. Besides, the durability of the works will have to be mentioned.

Additionally, if the project cost rises by 10% of the estimated cost, MHADA will have to take a revised administrative approval for the same. While carrying out the bidding process, MHADA will have to follow the Central Vigilance Commission guidelines and it will have to mention the escalation formula in the bids.

Meanwhile, the state government has appointed Mr SS Shinde – retired chief justice of the Rajasthan High Court – as the chairperson of the Maharashtra Real Estate Appellate Authority.