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CREDAI-MCHI, in partnership with CIDCO (City and Industrial Development Corporation), organised a workshop on an amnesty scheme for Maveja (additional compensation to farmers) and Additional Lease Premium (for delay in construction by plot owner).
Maveja and ALP are two components of the recently announced amnesty scheme for thousands of residents of Navi Mumbai, including project affected persons (PAPs) and developers. Recently, Chief Minister Eknath Shinde had ordered delinking CIDCO permissions from pending dues, a decision expected to benefit over 1,000 housing societies.
Maveja is the difference between the amount the PAPs received for their acquired land and the payment to be made for getting 12.5% plot compensation land from CIDCO. Additional lease premium (ALP) is to be paid for delay in construction by the plot owner to CIDCO.
At the event, five key points of contention were identified, which are Maveja on 12.5% plots, ALP on all plots, high rates of ALP going up to 115% for plots whose construction is delayed, huge mortgage NOC cost for marketing plots in CIDCO jurisdiction to banks for construction finance etc and delay in Infrastructure causing rise in ALP.
CREDAI-MCHI proactively engaged with the Government of Maharashtra (GOM) on these issues which led to the formation of a committee chaired by Ex-chief secretary Maharashtra Government, Shri Sanjay Kumar (Retd. IAS), to address these challenges. After thorough deliberation, the government accepted all recommendations of the committee, except for ALP for all plots. Furthermore, CIDCO was directed to adopt a new formula, aligning with changes in the Land Acquisition Act, for calculating Maveja going forward.
In a significant decision, the government has separated the recovery of Maveja/ALP from the issuance of occupancy certificates, conveyance NOCs, or transfer of flats. Projects facing construction delays have been granted a 50% amnesty on payable amounts of Maveja and ALP until March 31, 2023, under the Abhay Yojana.
Building upon these efforts, CIDCO has been instructed by the government to expedite the issuance of pending Occupancy certificates, Conveyance, and Society formation NOCs for ready constructed buildings in Navi Mumbai.
Furthermore, a policy decision has been made regarding the revision of the Maveja calculation method, demonstrating the government's dedication to mitigating financial hardships faced by citizens and farmers.
Mr. Domnic Romell, President of CREDAI-MCHI, said that this collaborative effort underscores CREDAI’s commitment to addressing the concerns of stakeholders in Navi Mumbai, ensuring a conducive environment for all. He views the policy changes as a significant milestone in resolving long standing issues and promoting sustainable development.
Abhay Yojana by CIDCO will facilitate the transfer of flats by delinking the certificates from surplus amount recovery under CIDCO. The developers want the scheme to be extended beyond March 31.
These efforts align with CREDAI’s vision of empowering CREDAI-MCHI to strengthen the Real Estate fraternity of the Mumbai Metropolitan Region so that it preserves, protects, and advances the right to housing for all through the ever-evolving real estate fraternity.
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