MHADA Reduces RR Charges for Tenants of Old Cessed Buildings in Mumbai

MHADA Reduces RR Charges for Tenants of Old Cessed Buildings in Mumbai

MHADA Reduces RR Charges for Tenants of Old Cessed Buildings in Mumbai

In a significant move to provide relief to tenants of old and dangerous buildings, the Maharashtra Housing and Area Development Authority (MHADA) has decided to reduce the ready reckoner (RR) charges for additional area allotted to eligible tenants. The new policy will charge tenants 100% of the RR rate, down from the previous 110%, for any additional area allotted beyond their residential units' original or permissible area.

This adjustment is expected to ease the financial burden on tenants of old cessed buildings, many of whom have long faced challenges with unsafe living conditions and slow-paced redevelopment.

Improved Benefits for Ground Floor Tenants

Jaiswal also announced that tenants living on the ground floors of old buildings, who were previously excluded from eligibility for redevelopment schemes, will now be added to the MBRRB’s master list and will receive the same benefits as other tenants. This move is intended to address the long-standing uncertainties faced by ground-floor tenants in buildings where only upper floors have been demolished.

The new policy is part of a broader effort by MHADA to provide better compensation and housing opportunities to residents of old cessed buildings. Jaiswal emphasised that the initiative would ensure more equitable treatment for all residents and provide much-needed relief to those who have been waiting for proper housing solutions.

Ongoing Surveys and New Lottery System

MHADA is currently conducting a biometric survey of transit camp residents to categorise them into three groups—A, B, and C—based on their eligibility and current living conditions. The residents in Category A, whose original buildings cannot be rebuilt, will be given preference when added to the master list.

Additionally, the CEO of MHADA has instructed that if the redevelopment of dangerous cessed buildings stalls, affected tenants should be given the option to be added to the master list for alternative housing. This includes tenants living in buildings acquired by MHADA after the issuance of a notice under Section 91(A).

A New Lottery for Redevelopment of Cessed Buildings

In another significant development, Jaiswal directed that a new lottery be conducted within the next six months to determine eligibility for permanent homes for 100 tenants or residents from old cessed buildings. This new lottery will be organised based on tenement sizes and will aim to address the backlog of cases where redevelopment has been delayed.

The December 2023 lottery had already been organised in five categories based on the size of the tenement, ranging from smaller units (300–316 sq ft) to larger ones (701–753 sq ft). The lottery was a key step in addressing the housing needs of residents in dilapidated and unsafe buildings.

Conclusion

MHADA’s decision to reduce RR charges for additional areas and provide more clarity and fairness in the redevelopment of old cessed buildings is a significant step towards resolving the housing crisis for Mumbai’s most vulnerable residents. With continued focus on improving compensation mechanisms and offering alternative housing options, the new policy promises to bring greater relief and a more equitable housing solution to those affected by Mumbai’s ageing housing stock.

About the author
Sandeep Sadh

About Sandeep Sadh

Sandeep Sadh has been in the real estate business since 1993 in Mumbai. He has expertise in Buying, Selling, Leasing properties in Mumbai and a deep understanding of legal and tax related matters due to his experience.

Summary

Over the years, he has experienced the City's growth. He has been a columnist in the Times of India with numerous articles, which bring about a clear picture of the real estate market in Mumbai. He is a regular on NDTV, CNBC, ET Now Real Estate and Zee News, giving his experienced quotes as and when required.

Sandeep Sadh has used information and technology since the year 1998 and now what people call it Prop Tech to cater to the needs of Home Buyer, Seller, Investor and Corporates, HNI and NRI looking to Buy/Sell or Lease their properties in the Mumbai Property Market.

Sandeep has a holistic experience of real estate be it Leasing an Apartment for your CEO in the most upmarket buildings, to enter into a long lease for your office in Mumbai in prime buildings or an Investment in good projects with a detailed analysis keeping in mind the Demand and Supply and other micro factors of the project/property.

Sandeep Sadh has developed a few websites like www.mumbaipropertyexchange.com, www.realestatemumbai.com, www.propi.in which augment the real estate consulting business.

Right from Investments in Primary Markets to Selling, leasing and specializing for NRI’s all over the world. He is an expert in NRI Home Buying and Selling and has a good understanding of the Income Tax laws pertaining to Selling a Property and Repatriating funds overseas or reinvesting based on Capital Gains etc.

Experience

  • Residential Leasing
  • Commercial Leasing
  • Residential Home Buying
  • Commercial Property Buying
  • Investment Properties with complete Property Management as your Real Estate Family office

While transacting in the above segments, he has complete experience and deep understanding of the paper work, his areas of expertise are :

  1. Drafting of the Leave and License Agreements
  2. MOU for Buying/Selling Properties
  3. Drafting Agreement for Sale
  4. Gift Deeds
  5. Computing of Capital Gains with current ready reckoner values
  6. Drafting of Supporting Power of Attorney.

As an add on Service, Sandeep Sadh has tied up with various Professionals like Lawyers and Chartered Accountants who add value in transacting and specially services for Non Resident Indians.

Application to Income Tax for Lower Tax Deduction Certificate – Through a qualified CA and keeping a grip on the traction so that the remittance back to Non Resident Indians after Selling the property is seamlessly transferred.

You can connect with Sandeep Sadh on ssadh@mumbaipropertyexchange.com

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