CAG Pulled MHADA For Fixing Sale Of Tenements On RR Rates

The districts in question are Pune, Satara, Solapur and Hingoli, and the report has rapped MHADA for overcharging Low and Middle-Income Groups for affordable housing projects.

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CAG Pulled MHADA For Fixing Sale Of Tenements On RR Rates

Comptroller and Auditor General (CAG), in his recent report, pulled up the Maharashtra Housing and Area Development Authority (MHADA) for fixing the sale price of tenements in several districts on Ready Reckoner rates (RR rates) rather than actual land cost.

The districts in question are Pune, Satara, Solapur and Hingoli, and the report has rapped MHADA for overcharging Low and Middle-Income Groups for affordable housing projects.

Read Also: Revision Of Circle Rates In Gurugram After 4 Years, Implemented

MHADA’s mandate is to implement affordable housing schemes for families that come under the Economically Weaker Sector (EWS), Low Income Group (LIG), Middle Income Group (MIG) and Higher Income Group (HIG).

Taking the price of land at RR rates, when the land cost was minimal to MHADA, was not in accordance with the MHADA’s pricing policy of August 2009. As a result of which, the prospective buyers would be charged excess sale price in the range of Rs 0.81 lakh to Rs 13.92 lakh per tenement, states the report.

Read Also: Barely 8% Target Met Under Urban Housing Scheme, PM Awas Yojana

MHADA fixed the rates as per the RR rates in these districts which have resulted in charging of excess profit on allotment of tenements to the extent of Rs 8.08 crore, thereby putting an excessive financial burden on the families falling under Low and Middle Income Group, the report further reads.

MHADA’s chief accounts officer said the RR rates were adopted for calculation of land as per the government resolution of May 2006, issued by the Revenue and Forest Department, due to non-availability of records.

Read Also: Pune Circle Rate Proposed To Be Hiked (Ready Reckoner Rates)

CAG did not agree. The replies are not tenable as fixation of the sale price of tenements considering the market rate of land is in contravention of MHADA’s pricing policy of August 2009, stated the final verdict. Officials from the state revenue department stated that the matter was referred to the government last August and that they’re awaiting a reply.

Source Link- https://timesofindia.indiatimes.com/.

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