The Mumbai Housing and Area Development Board (MHADA) has strongly denied the allegations leveled by a housing society pertaining to the cost of flats under the Boards housing scheme,for which applications were invited recently. MHADA in January had invited applications for sale of 3863 flats under EWS,LIG,MIG and HIG categories for benefiting the common people. Joint Chief Officer of MHADA,Abhimanyu Kale,has revealed that a profit percentage is charged only in respect of tenements under the MIG and HIG categories. Kale states that in pursuance to a resolution dated November 16,1992 passed by the board,it is empowered or entitled to charge a percentage of profit and the petitioners are not entitled to challenge the pricing policy. The Chandivali Powai Cooperative Housing Society Sangh Limited had moved the Bombay High Court with a series of allegations pertaining to the housing scheme. Replying to allegations of substandard materials being used for construction,the board contends that they have enhanced the quality of tenements and structure,which provide structural guarantee and are earthquake resistant. Petitioners allegation that the board has earned crores of rupees by way of selling forms and interest on earnest money too has been denied. MHADA had sold 7,55,793 applications at Rs 100 each and thereafter received 4,34,215 duly filled applications for the 3863 tenements. Kale in his affidavit has now given a break-up (see box) of the amount charged for the application,which included service charges to the bank,printing charges and advertising costs. According to petitioners the rate charge by MHADA appears to be almost equivalent to the prevailing market rates charged by private builders. Petition states that the authorities have indicated further increase in the cost of flat in future. If that happens,the common man will suffer and the provision of stamp duty will add extra burden upon prospective buyers who are already paying a substantial amount for purchasing the flat. As compared to private builders,no basic amenities like garden gym and modular kitchen have been provided,petition states. Moreover,the construction materials used are not up to the mark,petition alleges. Petition also points out that the amount collected by way of selling forms and interest on the earnest money needs to be considered in the cost cutting and similarly the authority should return the earnest money to unsuccessful applicants. Petitioners have urged the court to call for the records and grant an interim stay till the final disposal of the petition. The affidavit has been filed and the case will come up for hearing next week, said counsel for MHADA G W Mattos.
