MHADA Konkan Board Directs Developer to Cease Charging Additional Fees from 132 EWS Flat Winners in Dhokali, Thane

Mumbai / October 11, 2024: The Maharashtra Housing and Area Development Authority’s (MHADA) Vice President and Chief Executive Officer, Sanjeev Jaiswal, has instructed a Thane-based developer to stop charging additional development fees from 132 flat winners under the Economically Weaker Section (EWS) category of the Konkan Board’s Dhokali (Thane) housing lottery. The developer has been directed to charge only the advertised flat prices, along with any permissible government fees. This directive offers major relief to the successful beneficiaries of the 2023 lottery, enabling them to purchase affordable housing without any unexpected financial burden, a statement from MHADA said.

During a recent joint meeting with eligible flat winners, MHADA officials, and the developer’s representatives, Jaiswal emphasized the importance of adhering to the guidelines laid out under the 20% All-Inclusive Scheme of the Unified Development Control and Promotion Regulations (UDCPR-2020). He explained that the scheme is a flagship initiative of the Maharashtra government aimed at providing affordable housing to citizens in the EWS and Low Income Group (LIG) categories, the statement added.  

Under this scheme, MHADA advertises flats that are priced by incorporating a 25% additional construction cost. The remaining amount, excluding administrative fees, is to be paid by the beneficiaries directly to the developer. Therefore, the developer’s attempt to impose extra charges on the beneficiaries was deemed unacceptable.

Jaiswal noted that the developer’s demand for Rs 3,58,635 as development charges from each beneficiary was in violation of the agreed terms. He clearly instructed the developer to only levy the applicable government fees and to inform beneficiaries with a detailed breakdown of the charges. Additionally, he directed the developer to complete the flat agreements with all beneficiaries and submit a report on the steps taken to rectify the situation.

This issue arose following MHADA’s lottery held in February 2024 under the Konkan Board, where 132 flats were made available to EWS beneficiaries at Plot No. 380, Highland Springs, Dhokali (Thane), as part of the 20% All-Inclusive Scheme. The successful applicants were required to pay 1% of the total flat cost to MHADA as an administrative fee, with the remaining amount, along with government-mandated fees, to be paid directly to the developer. However, despite MHADA offering the flats at Rs 18 lakh, the developer issued demand letters asking the winners to pay an additional Rs 9 lakh, prompting serious concerns among the beneficiaries, the statement added. 

In response to these excessive demands, MHADA had previously notified the developer not to charge any amount beyond the government-sanctioned fees and to issue revised demand letters that comply with RERA regulations for the handover of flats. However, due to the developer’s lack of response, several beneficiaries filed formal complaints with MHADA’s Vice President, Sanjeev Jaiswal, during the Lokshahi Din (Democracy Day) grievance redressal meeting.