CREDAI-MCHI, in partnership with CIDCO (City and Industrial Development Corporation), organised a workshop on maveja (additional compensation to farmers) and additional lease premium (ALP; for delay in construction by plot owner).
Maveja and ALP are two components of the recently announced amnesty scheme for thousands of residents of Navi Mumbai, including project affected persons (PAPs) and developers. Recently, Chief Minister Eknath Shinde had ordered delinking CIDCO permissions from pending dues, a decision expected to benefit over 1,000 housing societies.
CREDAI-MSCHI has actively engaged with the state government on five key points – maveja on 12.5% plots, ALP on all plots, high rates of ALP up to 115% for plots whose construction is delayed, huge mortgage NOC cost for marketing plots in CIDCO jurisdiction to banks for construction finance, and delay in development causing rise in ALP. This led to the formation of a committee to address these challenges.
After extended deliberations, the government accepted all recommendations of the committee, except for ALP for all plots. Furthermore, CIDCO was directed to adopt a new formula, aligning with changes in the Land Acquisition Act, to calculate the maveja.
In a significant decision, the government has separated the recovery of maveja/ALP from the issuance of occupancy certificates, conveyance NOCs, or transfer of flats. Projects facing construction delays have been granted a 50% amnesty on payable amounts of maveja and ALP until March 31, 2023, under the Abhay Yojana.
Domnic Romell, president of CREDAI-MCHI, said, “The policy changes signify a significant milestone in resolving long-standing issues and promoting sustainable development.”
