Residents say developer demanded extra money despite MoU fixing Rs 14.18 lakh as all-inclusive price for economically weaker section flats under PMAY-MHADA project
The issue surfaced after residents accessed the MoU via RTI and found the extra charges were not permitted. Pic/By Special arrangement
Homebuyers in Titwala have alleged that a private developer collected additional charges of up to Rs 4 lakh for flats built under the Pradhan Mantri Awas Yojana (PMAY) in partnership with the Maharashtra Housing and Area Development Authority (MHADA), even though the memorandum of understanding (MoU) barred any extra payment.
Residents who booked Economically Weaker Section (EWS) flats in the Rustagi Aarambha project said the developer demanded money under various heads such as development, electricity and infrastructure charges. Buyers claim they were rushed into registering agreements and later realised the charges were not permitted under the MoU signed in 2021 between MHADA and the developer.
Possession row
A resident said the agreement fixed the all-inclusive price of each flat at Rs 14.18 lakh and clearly stated that no additional amount could be charged.
Another resident said, “As per the sale agreement, the builder was required to hand over possession by February 22, 2026. However, the builder is now offering buyers a partial Occupancy Certificate (OC). The Kalyan-Dombivli Municipal Corporation (KDMC) has not yet provided water supply, the builder is issuing a part OC to recover the remaining payments from buyers.”
RTI findings
The issue surfaced after residents obtained a copy of the MoU through the Right to Information (RTI) Act and found that the extra payments were not allowed. Complaints were then filed with MHADA. CEO of the Kokan Board, MHADA, Dr Vishal Rathod said, “We have received complaints from tenants alleging that the developer collected extra money from them for flats purchased under the PMAY scheme. We will soon arrange a hearing, where the developer will be called to present his side.”
Developer’s response
When contacted on Friday, March 13, the developer told mid-day that the allegations levelled by the residents were “false and misleading”, adding that he would share an official response on Monday, March 16, as he was attending a family wedding. However, when this newspaper reached out again on Monday for his official version, calls and messages went unanswered.
Project details
Project located in Titwala
695
Total no of flats
318
Area of each flat in sq ft
602
Flats allotted under the PMAY EWS category on first-come, first-served basis
The remaining flats can be sold by the developer at market rates
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