Mumbai: Maharashtra Housing and Area Development Authority (MHADA) has decided to reduce the penal interest on delayed payments of installments against various premiums to be paid in respect of Building Permission in the redevelopment projects of MHADA from the existing 18% to 12% annually. This information was announced today by Mr. Sanjeev Jaiswal, Vice President and CEO of MHADA .
Maharashtra Deputy Chief Minister Devendra Fadanvis echoed concern over the development premiums on housing projects that MHADA levies on. When there is a delay in paying these charges, the penal interest rate of 18% is imposed on the developers is higher and there is a need to reduced it , as expressed by Mr Fadnavis during his visit to the National Real Estate Development Council's recent property exhibition.
As per the instructions issued by Mr Fadnavis and directives given by Minister of Housing Development Atul Save, Mr. Jaiswal asked the officers concerned to review and take necessary action. Alongside, in accordance with the given directives, a proposal was immediately drafted to reduce the interest on delayed payments of installments against various premiums from 18% to 12% for the redevelopment projects.
MHADA holds jurisdiction over land & authority to regulate it
It may be recalled that the Maharashtra government has granted MHADA the status of a development authority with control over 114 layouts in the Greater Mumbai region as per which MHADA holds jurisdiction over the land and the authority to regulate it. For the redevelopment of old MHADA properties, permissions are being processed through three independent departments at MHADA headquarters: the Layout Approval Section, the Building Permissions Department for the Greater Mumbai area, and the Urban Housing Scheme under the Prime Minister's Housing Scheme.
The Building permission department carries out its activities adhering to the provisions in the Maharashtra Region and Town Planning Act of 1966. On this background the decision to reduce the penal interest on delayed payments of installments against various premiums to be paid in respect of Building Permission in the redevelopment projects of MHADA from the existing 18% to 12%.
