MHADA to takeover if developer fails to start project in 5 years

MHADA to takeover if developer fails to start project in 5 years

Sanjay JogUpdated: Saturday, April 03, 2021, 02:20 AM IST
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Minister Jitendra Awhad |

The Maharashtra Government has cracked the whip against the developers, who despite signing MoU with the residents of Maharashtra Housing and Area Development Authority (MHADA) Colony from Mumbai and Thane for redevelopment, have not even started the work nor giving rent to the residents. Housing Minister Jitendra Awhad on Friday announced that if a developer despite seeking no objection certificate and consent from the residents has not even kicked off the redevelopment for five years then MHADA will redevelop that building.

Awhad told Free Press Journal, "The government came to notice that the developer has entered into an MoU with the residents of MHADA Colony in Mumbai and Thane to redevelop the building. However, for many years, the developer has not redeveloped the building nor has he paid rent to the residents. Now, it has been decided that residents will not suffer for a long time but if the developer has not done redevelopment in five years then MHADA will redevelop the building. The residents will get flats free of cost while MHADA after getting extra floor space index (FSI) can sell other flats on commercial/market rates.’’ He said after five years the MoU will stand cancelled and thereafter MHADA can pitch in and complete the redevelopment.

He said there are 56 layouts in Mumbai and Thane and the government has received several complaints about lack of redevelopment by a developer despite signing MoU.

Awhad’s announcement came two days after he declared that the government will amend MahaRera Act with a provision of an arrest of a builder who is found in the sale of a flat to multiple buyers.

Meanwhile, Awhad also announced that MHADA will construct four hostels for students in Mumbai. These four hostels will accommodate about 2,000 students.

The minister said the first hostel will be constructed at Jijamata Nagar, Kalachowki where 500 students can be accommodated.

Earlier, Awhad had declared that MHADA will make temporary accommodation in 100 flats for cancer patients visiting the city.

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