Maharashtra housing and area development authority (MHADA) has reduced the charge applied to additional areas beyond the original or permissible area of old residential tenements for eligible tenants/residents on the master list of the Mumbai repair and reconstruction board.
The revised charge will now be 110% of the ready reckoner rate, down from the previous 125%.
Sanjeev Jaiswal, vice president and CEO of MHADA, explained that basically many tenants face serious financial constraints. Besides, developers often fail to provide the 300 square feet tenement that these tenants are entitled to. As a result, beneficiaries are often given larger units, and under the previous system, they were required to pay 125% of the Ready Reckoner Rate for the additional area.However, many beneficiaries are unable to afford this additional cost, which has delayed their permanent rehabilitation. Jaiswal noted that these payment challenges have caused a large backlog of unresolved cases with the Board, making it difficult to complete the rehabilitation process.
To accelerate the rehabilitation of tenants in old cessed buildings, the decision was made to reduce the charge for the additional area to 110% of the ready reckoner rate, making it more affordable for eligible beneficiaries.
