For Affordable Homes MHADA to pay 2.5 Times for land: Maharashtra

State law and judiciary department wants Maharashtra Housing & Area Development Authority to compensate private property owners under the Centre's Land Acquisition Rehabilitation and Resettlement Act.

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For Affordable Homes MHADA to pay 2.5 Times for land: Maharashtra

Affordable Homes MHADA: State government plan could cripple Mhada’s efforts to acquire land and properties for affordable housing in future. The state law and judiciary department wants Maharashtra Housing & Area Development Authority to compensate private property owners under the Centre’s Land Acquisition Rehabilitation and Resettlement Act, which stipulates payment 2.5 times the prevailing market rate.

MHADA sources said this would virtually stall any future effort to acquire properties for affordable homes. The department has stated that this Act should apply to MHADA as well.
Housing authority officials said it will spell the death-knell for MHADA given its limited resources. MHADA’s legal department has written to the state, stating that the Act does not apply to it and that it should be kept out of it.

MHADA builds affordable homes with extremely thin profit margins. 60% of the houses are built for Economic Weaker Sections (EWS) and Low Income Groups (LIG). MHADA do not make a profit on these homes. A marginal 5% profit is made by selling homes for Middle Income Groups (MIG) and 10% on High Income Group (HIG) flats, said the official.

MHADA has its own Act which provides for acquiring land and properties, payment of compensation in municipal and rural areas. Under it, MHADA negotiates privately with landowners. In Mumbai, old cessed buildings can be acquired by MHADA by paying a percentage of the total rent collected by the landlord. If the market rate is applied to a dilapidated cessed building, it will be worth tens of crores, he added.

The provisions of MHADA Act, 1976, cannot be obeyed without disobeying the provision of Land Acquisition Act, 2013, said the government letter. “In view of this, it is not legally feasible to issue the notification for land acquisition as proposed by MHADA,” it added. The law and judiciary department’s note was in response to MHADA’s plan to acquire land in Nandurbar village.

It is clear there can’t be any comparison between compensation prescribed under Mhada Act and one prescribed under Land Acquisition Act. Observations of the law and judiciary department appear inconsistent with the SC observations, said Mhada, in its reply.

Source Link- https://timesofindia.indiatimes.com/city/mumbai/maharashtra-wants-mhada-to-pay-2-5-times-market-rate-for-private-land/articleshow/61621196.cms

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