Can’t make profits on Mhada flats, says housing minister : Hindustan Times

AMEND LAWS State govt to get strict to stop lottery winners from selling the low-cost homes

MUMBAI: In a bid to stop the lottery winners of Maharashtra Housing and Area Development Authority (Mhada) low cost houses from selling these flats in the open market, the state government is likely to come down heavily on them.

There have been reports of Mhada lottery winners allegedly selling the flats at market rates. To counter this move, the housing development authority is planning to buy the flats back at ready reckoner rates thus disallowing private parties from buying them.

Further, the government is looking to amend rules to ensure the owners sell the flats only to Mhada, which will pay the existing ready reckoner rates.

According to Ravindra Waikar, minister of state for housing, it was wrong on the part of the flat owners to make profit on the low-cost houses. “These houses are for the end users and not for making profit,” said Waikar, adding, “We will buy these houses at ready reckoner rates and sell them again to the deserving people.”

The rules prohibit the sale of these houses before five years. It has been found that some buyers bend the rules and sell them with impunity even before the stipulated time. Mhada’s vigilance department has been unsuccessful in curbing the problem.

Mhada houses are popular as they are cheaper than those offered by private builders, whose rates have skyrocketed. In the draws held from 2008 to 2015, more than 13.53 lakh applicants have tried their luck for the 19,757 Mhada houses put up for sale.

Housing activists support this move. According to realty lawyer Vinod Sampat, Mhada can come up with watertight rules. “Since Mhada gives houses at cheaper rates, they can amend rules to ensure that houses are taken back if the applicant does not need it,” said Sampat.

Likewise, Ramesh Prabhu, chair man, Maharashtra Societies Welfare Association (MSWA), said this practice prevails in many countries. “This will also reduce the number of applicants as many people just apply to sell and make profits on these houses,” he said.