The Maharashtra Housing and Area Development Authority, or MHADA, updated its 2007 rules on rebuilding old homes. These changes adjust premium fees and payment plans. The goal is to help redevelop aging housing groups in Mumbai’s property scene become more affordable.
MHADA changed two key parts of its rebuilding rules. This covers premium costs for business space in jobs under Rule 33(5) of the 2034 Development Control and Promotion Regulations.
Under the fresh rules, the fee for business space uses a math formula. It looks at land prices, market rates, and space use. This swaps out the old setup. Before, builders paid 1.5 times the home rate for business spots. Builders said that made projects too costly.
MHADA staff note the new way mixes home and business rates. It creates a fairer fee plan.
The change came after pleas from the top builders’ group, CREDAI-MCHI. They pushed for equal fees on homes and business spaces. This aids even growth.
MHADA now lets home groups and builders split the premium for extra space into four even parts. They add interest.
MHADA matched this with the city body’s current plan. The Municipal Corporation of Greater Mumbai allows split payments for build permits and fees.
So, the fee for extra space under Rule 33(5) can now spread out. It eases money stress on those involved. Projects can move ahead with less hassle.
Rebuilding on MHADA lands follows Rule 33(5) of the 2034 rules. Builders pay a fee on extra space. They subtract old space from the max allowed.
MHADA says for sites under 4,000 square meters, pay in five parts. The first is 10% of the full fee. Due one month after the intent letter. Then 22.5% each at 12, 24, 36, and 48 months. All with interest.
For sites of 4,000 square meters or more, the fee splits differently.