MHADA to dole out concessions to defaulters

MAY 30: In order to recover whopping outstandings from defaulters, the Maharashtra Housing and Area Development Authority (MHADA) will soo...

MAY 30: In order to recover whopping outstandings from defaulters, the Maharashtra Housing and Area Development Authority (MHADA) will soon announce a scheme to offer interest rate swaps. This means that those customers who have purchased MHADA flats and are currently obliged to pay 16 per cent interest rate on outstandings can settle their dues by paying up present market rates, which are around 12 per cent. This move will benefit MHADA to a large extent as the outstandings from high-income group flats at Oshiwara have zoomed to Rs 38 crore. Even the Powai project has defaulters owing MHADA over Rs 8 crore.

Talking to Newsline, G S Gill, CEO of MHADA said this will help MHADA to recover its dues faster as the difference in rates will result in over 25 per cent savings to customers. He said in the last month alone MHADA has recovered Rs 4 crore.

This move follows a recent controversy that cropped up after MHADA started confiscating defaulters’ belongings like television ets and refrigerators, citing non-payment of dues in the Oshiwara housing society. After this recovery drive, MHADA could cough up a sizeable amount of dues. A top MHADA official said that around Rs 10 crore was recovered after this drive.

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Several customers purchased high-income group flats in Oshiwara where the equated monthly instalments (EMIs) payable to MHADA were to the tune of Rs 38,000. Ironically, MHADA had fixed an eligibility critieria of Rs 8,500 per month for applying to these flats, though EMIs were fixed at exorbitant rates. In fact, residents were avoiding payment of EMIs expecting a rate cut in flat prices, becuase they had booked flats when the property prices were ruling quite high.

However, Gill has made it clear that the residents’ demand for cutting down of flat prices will not be conceded. However, a resident in Oshiwara society said that MHADA has in some cases agreed to bring down the flat prices from Rs 2,900 levels to Rs 2,300 per sq ft.

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