Mumbai, June 29: Thousands of homebuyers awaiting the Maharashtra Housing and Area Development Authority (MHADA) lottery for 2,640 affordable homes have been left in financial limbo after the draw was postponed indefinitely, with applicants alleging that while their deposits remain blocked, the housing authority is set to earn an estimated Rs 10–12 crore in interest.
The lottery, which received 75,927 valid applications across the Economically Weaker Section (EWS), Lower Income Group (LIG), Middle Income Group (MIG) and Higher Income Group (HIG) categories, was originally scheduled to be held on May 15.
However, the application deadline was extended twice after receiving a lower-than-expected response, and the draw was later deferred due to the Model Code of Conduct imposed for the MLC elections.
With the draw yet to be conducted, applicants' earnest money deposits (EMDs) remain locked with MHADA. Based on the deposits received, the authority is estimated to be holding around Rs 375 crore, on which it could earn between Rs 10 crore and Rs 12 crore in interest over a period of two to three months.
Applicants Seek Immediate Draw
Applicants have now demanded that MHADA either announce the lottery date immediately or compensate them by paying interest on the money that has remained blocked for months.
When contacted, a MHADA official, who did not wish to be named, said the State Legislature's Monsoon Session is currently underway and the authority is awaiting time from the Chief Minister and both Deputy Chief Ministers before announcing the draw. Officials indicated that the lottery is likely to be conducted during the first week of July.
The prolonged delay has caused hardship for many applicants who arranged the EMD by borrowing money, breaking fixed deposits or using credit cards.
Ashwini Karande (name changed), a Goregaon resident who applied under the Lower Income Group category, said she mortgaged her jewellery to arrange the Rs 50,000 EMD.
"The draw was supposed to be held on May 15. It has now been almost two months. MHADA is earning interest on our money while we are paying interest to moneylenders. At the very least, they should announce the draw date," she said.
Applicants Cite Financial Burden
Another applicant, who applied under the Economically Weaker Section category, said he paid the Rs 25,000 EMD through his credit card.
"For many families, Rs 25,000 is a substantial amount. Every month I am paying EMIs and penalty charges. MHADA's money is secure, but applicants are bearing the financial burden," he said.
Prakash Rasal from Kandivali, who applied under the Middle Income Group category, said he prematurely encashed a fixed deposit to arrange the Rs 1 lakh EMD.
"I assumed the money would be refunded within a week if I wasn't allotted a house. Instead, it has remained blocked for nearly three months. I have neither got a house nor earned any return on my money. MHADA should at least pay interest on the EMD," he said.
Lottery Awaiting Government Approval
Housing experts point out that many Mumbai residents submit applications in multiple MHADA housing schemes to improve their chances of securing an affordable home in the city.
Under the authority's existing rules, unsuccessful applicants normally receive refunds of their EMD within a week after the lottery draw. However, since the draw itself has not taken place, thousands of applicants continue to wait for the return of their money.
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Applicants argue that while they continue to pay interest on loans, credit cards and borrowed funds used for the deposits, MHADA stands to benefit financially from the delay through interest earned on the accumulated corpus.
They have urged the authority to expedite the lottery process or consider compensating applicants for the prolonged delay in refunding their deposits.
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