The Maharashtra Housing and Area Development Authority (MHADA) is cracking down on builders in the city who have failed to allocate 20% of housing units to economically weaker sections in construction projects exceeding 4,000 square metres. Notices have been issued to 200 prominent builders, demanding clarification on whether they have complied with the mandated housing quota.
Failure to provide the required information within 10 days will result in criminal action against the developers. However, concerns have been raised regarding the approach taken by MHADA in issuing these notices directly to builders without consulting the regional office, City Planning Authority, or Nashik Municipal Corporation (NMC).
According to government regulations established in 2013, developers are obligated to reserve 20% of the total area for Lower Income Group (LIG) and Middle Income Group (MIG) housing in construction projects exceeding 4,000 square meters. This allocation must be within a one-kilometre radius of the project site.
The NMC is responsible for enforcing this rule during the construction permit approval process, and the Town Planning Department verifies compliance before issuing completion certificates. The allocated housing units or plots are then transferred to MHADA and distributed to economically weaker sections through lottery.
While the MHADA headquarters has sought information directly from builders, it is expected that they coordinate with the NMC, which already possesses information about ongoing projects. The CREDAI association of construction professionals is closely monitoring the situation and will take further action after analysing the notices. Builders argue that many of them have been targeted despite having projects smaller than one acre, indicating a lack of understanding or communication within MHADA.
This development follows previous confrontations between builders and MHADA regarding construction permissions. MHADA's intervention in blocking final approvals prompted the NMC to challenge the process, emphasizing the need for streamlined decision-making.
