MHADA Allows Resale Of Quota Flats
The Maharashtra government has allowed the resale and mortgaging of the Maharashtra Housing and Area Development Authority (MHADA) flats that are allotted under state government’s five per cent quota. The decision has been taken keeping in mind that most quota flats are inherited properties and allowing the sale or mortgage of such properties will help the owners raise funds for other purposes. This also includes senior citizens planning to raise money for their health treatment. However, the government has mandated permission of respective district collector before selling of such units.
What are quota flats?
While the MHADA offers most of its flats through lottery, almost five per cent of such units are kept reserved by the state government for artists, freedom fighters, sports persons, etc., and are allotted by the chief minister, the head of urban development department of the state government. Most of these government quota flats are located in Mumbai, Thane, Navi Mumbai, Pune and Nashik. There are two types of allotment under the quota – two per cent of the MHADA scheme and five per cent under the Urban Land Ceiling Act of the Urban Development Authority.
The controversial allotment
The Bombay High Court (HC) had stopped the allotment under the CM’s quota temporarily due to alleged irregularities in the process as multiple flats have been allotted to the same buyers by committing fraud and furnishing fake affidavits. In 2014, the court had appointed a one-man commission for recommendations and proposed an action plan. While the report was submitted in Nov 2015, the HC directed the commission for scrutinizing the applications for flats since 1982 under which almost 27 first-information reports (FIRs) have been filed so far against buyers for getting flats fraudulently. The HC has asked the state to form a new policy for providing flats under quota which should be transparent and fair.