MHADA Lowers Charges for Additional Area in Old Tenements to Speed Up Rehabilitation

Mumbai / October 11, 2024: MHADA has decided to reduce 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 Repair and Reconstruction Board. The revised charge will now be 110% of the Ready Reckoner Rate, down from the previous 125%, MHADA said in a statement. 

During a meeting focused on resolving rehabilitation issues for tenants /residents on the master list, Vice President and CEO Sanjeev Jaiswal 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, the statement added.

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, the statement added.

Jaiswal had previously established a policy to confirm the eligibility of tenants/residents on the master List and ensure that the area of the newly allocated tenement corresponds to the area of their original tenement. This decision will ensure that tenants receive housing in line with their entitlement, while also easing the financial burden.

This decision is expected to fulfill the long-standing dream of tenants who have been living in transit camps for years. It will also simplify and speed up the process of providing rightful housing to tenants on the master List. Chief Officer of the Board, Milind Shambharkar, highlighted that this decision will have a significant positive impact on the overall rehabilitation process for tenants and residents.