All About MHADA Housing Scheme

By anamikavverma - May 31, 2019

Maharashtra Housing and Area Development Authority, or MHADA, is the housing and
urban development committee under the Government of Maharashtra. It was created to
relieve issues faced by residents living in structures that are in poor condition and offer
inhabitable conditions. MHADA Lottery system introduced a low-cost housing scheme in
and around the economic and industrial hubs of the state to accommodate a growing
population.

Certain areas in Maharashtra (for example Mumbai) have some of the most expensive and
scarce living quarters in the country. Thousands of people belonging to the EWS
(Economically Weaker Section) and LIG (Lower Income Group) live in below-par conditions
all around the state. MHADA Lottery scheme brings a lottery system under which an eligible
applicant can purchase a property at affordable rates. The government subsidy reduces
the price significantly and allows an applicant to pay for the real estate property with the
help of a home loan.

What is Maharashtra Housing and Area Development Authority Housing Scheme?

MHADA develops residential accommodation for the lower and middle-income group
across the state. MHADA Mumbai has been developing affordable housing units across the
suburban areas with assistance from Pradhan Mantri Aawas Yojna.

MHADA lottery system received an overwhelming response of approximately 1.35 Lakh

applications for 972 available housing units. It indicates the extreme requirement for good
quality affordable housing in India’s financial capital.

Details About MHADA Affordable Housing Plan

MHADA scheme conducts a lottery system to allot flats. An applicant has to submit their
application within a given period to participate in the scheme.
• Most affordable cost approximately Rs. 8 Lakh and prices can go as high as Rs. 85 Lakh.
Lottery winners will have to pay for Service Tax, stamp duty, and other taxes levied by
the Government of Maharashtra along with the price of the property. An individual will
only possess the housing unit after paying all their dues.
• The built-up areas in MHADA Pune and Mumbai can range from 21 sq. Meters to 119 sq.
Meters. The carpet area ranges between 15 sq. Meters to 68 sq. Meters.
• MHADA categorized the housing units depending on the income of the individual. The
residential properties are divided between High-Income Group, Mid-Income Group, Low-
Income Group, and Economically Weaker Sections.
• MHADA provides affordable housing options in Andheri, Borivali, Malad, Sion, Wadala,
Kurla, Ghatkopar, Goregaon, Jogeshwari, Kandiwali, Chandivali, Chembur, Muland, Powai,
and surrounding regions. However, locations like Andheri and Kurla can be more
expensive than other places, but an actioner can apply for credit as a housing loan to
pay for the extra cost.

Several financial institutions offer home loans at competitive interest rates, flexible
repayment tenors, minimum documentation, and several other features and benefits.

• An MHADA flat owner is allowed to sell their unit after 5 years from the date of purchase.
However, there are some legal restrictions on these properties that a buyer has to abide
by, viz. –

1. A borrower should ask for the registered deed to sell a property allocated by MHADA.
Purchasing it with only the power of attorney is illegal.
2. One should also obtain a ‘No-Due’ certificate from MHADA.
3. Ownership of a property will require the original allotment papers issued by the MHADA
Lottery system on an owner’s name. Buyers should also ask for the share certificate
given by a property’s housing society and a copy of the request-to-transfer certificate.
4. The agreement should be in the buyer’s name, and MHADA should be notified about the
handover. The buyer will have to pay stamp duty, registration charges, and a transfer
fee for the process.

MHADA, being one of the affordable housing schemes offers a subsidized and affordable
model to purchase property in one of the financial hubs in India. The affordable home loan
interest rates and government subsidized price is how buying a home made easy and
hassle-free.

ANAMIKAVVERMA