State wants developers to hand over 20 pc of all big plots to MHADA

In a move infused with prepoll populism the government has decided that 20 per cent of each plot measuring an acre or more will have to be reserved for the underprivileged A notification issued by the statersquos urban development department in the first week of November makes it obligatory for developers to hand over a fifth of the plot or houses built on the plot to Mhada The state housing authority can then give it away to the economically weaker sections and lower income groups in its housing lottery Representational pic A notification issued by the statersquos urban development department UDD in the first week of November makes it obligatory for developers to hand over a fifth of the plot or houses built on the plot to Mhada The state housing authority can then give it away to the Economically Weaker Sections EWS and Lower Income Groups LIG in its housing lottery The treat for the poor a vision of which was marketed by the Congressled state government as lsquoinclusive housingrsquo in its housing policy announced in 2007 comes right before the upcoming general elections The UDD which is headed by Chief Minister Prithviraj Chavan took a year to approve the modifications in the Maharashtra Regional Town Planning MRTP Act to pave the way for enlarging affordable housing for the poor The file on the pertinent notification under section 37 1AAc of the MRTP Act was pending since the deputy director of town planning submitted his report to the government on November 8 2012 Incidentally in approving the provisos the chief minister has closed his eyes to an existent contract that provides affordable housing equally expansively It was a joint venture between the government and the Maharashtra Chamber of Housing Industry MCHI for construction of five lakh affordable homes in Mumbai and surrounding areas came which was entered into on June 1 2010 in the presence of then chief minister Ashok Chavan But it has seen no translation from paper into reality Builders says Paras Gundecha expresident of MCHI and proprietor of Gundecha Builders said the governmentrsquos move was agreeable but lengthy ldquoWe welcome the move as it will create a housing stock for people that fall in the LIG category But the process seems lengthy since the Mhada will purchase the stock within a period of six months Also the rate we will get from the government will be around Rs 1400 to Rs 1500 per sq ft if the market price is between Rs 3000 and Rs 3500 I am afraid the process may take more than 23 years to yield resultsrdquo Propoor minister Sachin Ahir minister of state for housing said the governmentrsquos decision is aimed at maximising housing stock for people belonging to economically weaker sections and lower income groups ldquoBut it requires more and more development in the housing sector Also people who are going to be benefitted from the plan should occupy these tenements and not resell them to shift elsewhererdquo he said The terms and conditions The changes notified under the MRTP Act stipulate that gtgt At least 20 per cent of the plot of land with an area of one or more acre 4000 sq m will be set aside for EWS and LIG either as plots of 3050 sq m or as tenements measuring 325 sq ft and 542 sq ft gtgtu00a0These plots will be sold to Mhada at existing ready reckoner rates gtgtu00a0Mhada will purchase this stock from the builder at the rate of construction and allot it to the winners of its housing lottery gtgtu00a0In return the developer will get an additional FSI equivalent to 20 of the land which he can use on the remaining area gtgtu00a0If Mhada declines to purchase the plots within six months the developer can sell them in the open market In this case no additional FSI would be granted gtgtu00a0The civic body will not issue occupation certificates OC for flats constructed for sale in the market unless they fall under affordable housing stock gtgtu00a0The landowner or developer will be permitted to use a quarter of the 20 per cent FSI for erecting service quarters but in a separate block on the same plot These will have to be sold as service quarters for commercial use the notification says gtgtu00a0The affordable houses or plots cannot be amalgamated gtgtu00a0The benefits do not extend to housing schemes or residential projects for which commencement certificates were issued before the changes were notified