MUMBAI: In a path-breaking policy decision, the State-run Maharashtra Housing and Area Development Authority (MHADA) will scrap letters of intent given to developers three years ago, if they have failed to start work or make any headway on redevelopment.
MHADA will immediately start cancellation of letters of intent of such developers and appoint new ones from January 2022, to put the redevelopment work on fast track.
Housing Minister Jitendra Awhad told the Free Press Journal, "There are about 300 projects in which MHADA had issued letters of intent in Mumbai, Thane and adjoining areas. The authority proposes to bring in new developers by canceling these redevelopment projects which have not taken off in the last 3 years. A decision to this effect was taken on Saturday and aims at providing homes to the target segment in a time-bound manner.
The Builders Association of India’s Chairman of Housing & RERA Committee, Anand Gupta, said, ‘This is the right decision, but it should have been taken long back. We hope all proposals under the Development Control Rule 33 (5), with regard to development in MHADA layouts, and all development under Rule 33(7) of all ceased properties, will see the light of the day. This will help all the eligible people to get their homes.’’
He suggested that the government needs to also consider providing/facilitating finance to support completion of all stuck-up projects in the city.
The decision came days after Awhad announced that the letter of intent for the much-awaited redevelopment of the Kamathipura housing project, located in South Mumbai, is to be issued by March 2022. If all goes well and an LOI is issued, the Maha Vikas Agahdi government will have one more feather in its cap.
Awhad said, "That means in the MVA government's tenure, a total four housing projects will be put back on track. These are the BDD Chawl, Patra Chawl, Motilal Nagar and the Kamathipura redevelopment projects. It will be a lifetime achievement and MHADA is all set to get cracking."
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