Relief for 24,000 MHADA tenants, end two-fold rent hike Real Estate News, ET RealEstate

Mumbai: About 24,000 families living in have got a big relief MHADARental Homes in South and Central Mumbai, Deputy Chief Minister Devendra Fadnavis The rent hike has been reduced from Rs 250 to Rs 500 per month.

Fadnavis further said that the state government will bring an amnesty scheme for those who have not paid the rent and notices have been sent to pay the rent along with penalty and interest on the outstanding amount.

Fadnavis’ decision assumes significance ahead of the BMC elections, which are expected to be held later this year.

Last week, Congress MLA from Mumbadevi Amin Patel raised the issue of two-fold hike in rent for economically backward families in MHADA buildings in the state assembly.

Patel had said, “MHADA had decided to increase the rent by 10% every year, but notices are being issued to the residents to pay the dues and the penalty and interest.”

“There are cases where residents have paid rent but have been issued notices to pay Rs 18,000 towards late fee and interest… There are also cases where families have been asked to pay over Rs 24,000. It said … the government should give a window to the residents to pay the rent, and if they pay it, the late fee and interest should be waived.”
Responding to Patel in the assembly, Fadnavis had said that there are a total of 23,959 units and notices have been issued to only 483 families. He had said, ‘BJP MLA (Bandra West) Ashish Shelar wrote a letter to me requesting a stay on the hike in rent. That’s why it has been banned and we have decided to bring a permanent policy in this regard.

“When we make this permanent policy, a scheme like amnesty will be made and if people pay the dues in that window, their late fee and interest will be waived off. MHADA spends Rs 2,000 per unit per month for maintenance does. We collect only Rs. 250 per unit per month so it was decided to increase the rent slightly. There will be no extortion by MHADA.

Officials said most of these buildings have been reconstructed by MHADA and the agency is the landlord. “We are thankful that the fare hike has been scrapped and an amnesty scheme will be launched,” Patel said.