Relief for over 24,000 MHADA tenants as the two-fold rent hike is scrapped

Deputy Chief Minister of Maharashtra, Devendra Fadnavis, has decided to scrap the two-fold rent hike for close to 24,000 families living in rental homes owned by the Maharashtra Housing and Area Development Authority (MHADA) in south and central Mumbai. This decision has come as a significant relief to many economically backward families who were finding it difficult to pay the increased rent.

Fadnavis has also announced an amnesty scheme for those families who have not paid rent and have been sent notices to pay rent along with a penalty and interest over the due amount. This amnesty scheme is expected to provide a window to residents to pay rent, and if they pay it within the given time frame, then the late fees and interest will be waived off.

Last week, Congress MLA from Mumbadevi Amin Patel had raised the issue of the two-fold hike in rent for economically backward families in MHADA buildings in the state legislative assembly. Patel had pointed out that notices were being issued to residents to pay arrears and penalty and interest, even though many had already paid rent. Some families were asked to pay more than Rs 24,000 which was causing significant financial strain.

In response to Patel's concerns, Fadnavis had said that notices were issued to only 483 families out of a total of 23,959 units. He further added that an amnesty scheme would be created when a permanent policy is established regarding rent. MHADA spends Rs 2,000 per month per unit for maintenance, and it collects only Rs 250 per month per unit, so it was decided to increase the rent by a little. However, no forced recovery will be conducted by MHADA.

Most of these buildings were rebuilt by MHADA, and the agency is the property owner. Maharashtra Housing and Area Development Authority (MHADA) is a government organization established in 1977 with the objective of providing affordable housing to the residents of Maharashtra. The authority is responsible for the construction, sale, and management of these houses. It also provides financial assistance and loans for the construction and repair of houses.

Fadnavis's decision to scrap the rent hike and introduce an amnesty scheme is being seen as a significant move ahead of the BMC polls, which are expected to be held later this year. It is likely that this decision will be welcomed by many families who are struggling to make ends meet, particularly during the COVID-19 pandemic.

Maharashtra Housing and Area Development Authority (MHADA), is a government organization established in 1977 with the objective of providing affordable housing to the residents of Maharashtra. The authority is responsible for the construction, sale, and management of these houses. It also provides financial assistance and loans for the construction and repair of houses.

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Relief for over 24,000 MHADA tenants as the two-fold rent hike is scrapped

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