The Maharashtra Housing and Area Development Authority (MHADA) has recently increased the cost of its 2018 lottery houses by Rs 3.5 lakh. It is issuing letters to winners intimating about the cost escalation. "The rise in the actual cost of houses is due to the delay in construction and therefore the allotment of houses also have been affected greatly," said officials of the MHADA Mumbai board.
The unexpected cost escalation of MHADA lottery houses after two years of winning the lottery scheme has left the winners in shock. These lottery winners have already been delayed the possession of their flats.
The Mumbai board of MHADA in 2018 held a lottery draw for 265 houses located in Mankhurd. These houses were sold out in LIG (Lower Income Group) scheme. At that time the houses were priced at Rs 24 lakh. However, now due to cost revision, the winners will have to pay nearly Rs 27-28 lakh.
Interestingly, MHADA calls housing lottery draw so it can provide affordable homes to people. But now with the change in cost, several homebuyers have raised doubts. While the MHADA officials asserted that homebuyers are already informed at the time of applying in the lottery that the cost of houses may vary as per the market condition.
Meanwhile, the housing experts however have expressed disappointment over the MHADA decision. Anand Gupta, one of the real estate experts said, "Why homebuyers should suffer for the delay in construction caused by the developer, in this case. Instead of imposing an additional cost to homebuyers/lottery winners, the developer should be asked to pay the extra cost which MHADA has to bear. Already, MHADA homebuyers are from middle-income group and increasing the cost by a few more lakhs will surely burn holes in their pockets."
Reportedly, due to no adequate housing stock in Mumbai, the board after the 2018 lottery draw could not conduct another housing lottery till date. Despite receiving lakhs of applications from homebuyers MHADA till date unable to meet the rising demand. Though it is currently constructing houses in the Goregaon Pahadi area, but it will take few more years. Therefore, homebuyers will have to wait.