Twenty five years after thousands of families bought plots of land in the city that became useless because of the no-construction rule within the 50-metre mangrove buffer zone, the Maharashtra Housing and Area Development Authority (MHADA) has decided to refund their money with interest.
“Those people who wish to seek a refund of the amount they had paid to MHADA should approach its headquarters in Bandra, along with the receipt. MHADA has decided to refund the beneficiaries the amount along with the existing interest rate in the market,” MHADA said in a statement on Thursday.
In 1995-96, thousands of families paid MHADA amounts ranging from Rs 1,000 to Rs 3.5 lakh for these bungalow plots in Gorai-Borivali, Charkop-Kandivali, Malwani-Malad, Mulund and Versova. A total of 2,600 cluster plots measuring 20 sqm to 30 sqm and 150 bungalow plots measuring 60 sqm to100 sqm were sold by MHADA through a lottery.
For the cluster plots, the buyers gave an earnest deposit money of Rs 1,000 -1,200 and for bungalows, the price was between Rs 2 and Rs 3.5 lakh.
But later, the High Court ordered that no development can be carried out within 50 metres of the Mangrove Buffer Zone, which made it impossible for the owners to develop houses on the plots.
MHADA President Uday Samant said the process for the refund will start soon.