MHADA cuts premium charges on extra area for Mumbai's cessed building residents

MUMBAI: In a major relief for residents of old cessed buildings, the Maharashtra Housing and Area Development Authority ( MHADA) has stated that eligible beneficiaries listed in its master list will now be required to pay only 100% of the Ready Reckoner Rate--instead of the earlier 110%--for any additional area allotted beyond the size of their original units.

This key concession will also be applied retrospectively to beneficiaries declared eligible in the housing body’s December 2023 lottery and MHADA’s Vice President and CEO Sanjeev Jaiswal has directed that a new policy framework for this be finalised by next week.

Cessed buildings in Mumbai refer to old, rent-controlled buildings primarily in South and Central Mumbai that were constructed before 1969. These buildings are subject to a cess or tax collected for their repair and maintenance by MHADA.

These buildings are categorized into three categories based on their construction year. The first category buildings are erected before 1940; the second category is of properties built between 1940 and 1950, while third category buildings are constructed between 1951 and 1969.

These buildings, many of which are in a dilapidated condition, are eligible for redevelopment under various urban renewal schemes.

Tenants from buildings whose redevelopment projects are stalled, or those acquired by MHADA will also be considered for inclusion.

“In many old and dangerous buildings, only the upper floors are demolished, leaving ground floor tenants in uncertainty. These residents were not previously regarded as eligible. We are going to change that; tenants on the ground floor will now be listed on the Master List and will also get the compensation they are due,” Jaiswal said

MHADA is currently conducting a biometric survey of transit camp residents to categorize them into categories A, B, and C in accordance with a September 2019 Government Resolution. Jaiswal has directed that residents of category A, whose original building cannot be rebuilt, be given preference when it comes to being added to the master list.

Furthermore, he directed that if the redevelopment of dangerous cessed buildings is stalled, residents need to be offered the option to be added to the master list. This includes those living in buildings acquired by MHADA.

Prior to this, in October, the state housing body had reduced these charges in Mumbai from 125% to 110% of the Ready Reckoner Rate, making it more affordable for eligible residents.

This reduction was implemented to accelerate the rehabilitation process and address financial constraints faced by beneficiaries who often receive larger units than the standard 300 sq ft.