What is the Mhada 20% inclusive housing scheme?

The Maharashtra Housing and Development Authority (Mhada) offers affordable housing in Maharashtra by way of conducting lottery. The Mhada lottery is announced by the various Mhada Boards present in the state which cater to people of various cities in the state. This lottery is fully computerised to ensure transparency.

Table of Contents

What are the different Mhada schemes?

When a Mhada Lottery is announced, there are many schemes that are a part of this lottery. The common schemes offered under Mhada Lottery are:

General lottery: This Mhada Lottery is open to all eligible applicants.
20% inclusive housing scheme: This is a scheme that offers affordable housing to the weaker section.
Pradhan Mantri Awas Yojana (PMAY): This focuses on giving housing units to the economically weaker sections (EWS)
First Come First Serve (FCFS): In this Mhada lottery, housing units are allocated on a first-come, first-serve basis.
E-Auction: This includes the open bidding for Mhada properties and is generally for plots that can support residential and commercial spaces.
15% comprehensive housing schemes: These are specially designed Mhada lottery housing schemes that cater to government employees.
15% social housing scheme: These are specially designed Mhada lottery housing schemes that cater to socially disadvantaged groups.

In this guide, we will discuss in detail all about the 20% inclusive housing scheme.

Mhada 20% inclusive scheme

According to a Maharashtra state government resolution (GR) issued on October 8, 2013, all developers building a housing project on an area spread over 4,000 sqm or more, should reserve 20% of the area for affordable housing. As an incentive for this, developers will get a 20% extra floor space index (FSI). Thus, with this, the EWS/LIG housing stock will be further augmented in private schemes not part of the affordable housing scheme by mandating 20% of built-up area for inclusive housing scheme on the lines of the provision under Unified Development Control and Promotion Regulation (UDPCR) of Greater Mumbai. This scheme has been conceived to provide affordable housing to people in case of Mhada not having sufficient land for development. Media reports suggest that Mhada has till now sold around 25,000 units under this scheme.

Housing units between 323-538 sqft built in this 20% reserved area will be allotted to the beneficiary under the Mhada 20% inclusive housing scheme lottery. They are sold directly by the developer after Mhada gives the developer the allottee list to the developer. The developer has to allot the housing units at the construction cost price mentioned in IGR Maharashtra’s annual statement of rates (ASR), with 25% additional cost. Only after getting the occupancy certificate (OC) for units constructed in the 20% area, will the developer get the occupancy certificate for the rest of the units in the project.

Eligibility to participate in the Mhada 20% inclusive scheme

Category	Annual family income slabs in Mumbai, Nagpur, Pune	Annual family income slabs in rest of Maharashtra	Carpet area
Economically Weaker Section (EWS)	Rs 6 lakh	Rs 4.5 lakh	30 sqm
Low Income Group (LIG)	Rs 9 lakh	Rs 7.5 lakh	60 sqm

See also: How to sell your Mhada flat?

What are the documents required to participate in the Mhada 20% inclusive housing scheme?

Registered mobile number that is linked to the Aadhar card.
Registered email id which will get the OTP and all lottery related information.
Aadhar card
PAN card
Domicile certificate issued within last 5 years (after January 1, 2018) and having the MahaOnline /MahaIT barcode.
ITR (self)
Income proof
PMAY registration certificate
Caste certificate
Special categories certificate

Problems with the Mhada 20% inclusive scheme

Mentioned are problems that have surfaced with respect to the Mhada 20% inclusive housing scheme.

Builder asking more money than allowed

While inclusivity was the idea behind the Mhada 20% scheme, it is not being followed effectively. There have been cases reported where at the time of payment and signing the sale agreement with the developer, the Mhada Lottery beneficiary is asked to cough extra money in lieu of amenities and conveniences provided in the project, which is illegal.

Builder not informing Mhada once the housing unit is developed

The process followed under the Mhada 20% inclusive scheme is that the developer should notify the Mhada about getting the occupancy certificate (OC) from the BMC, Mhada is given six months to decide if it wants to purchase the properties built under 20% scheme from the builder or allot it to the beneficiaries through a computerised lottery. Note that in case of a plot, if Mhada refuses to take from developer in these six months, the developer can sell it in open market. However, he may not get the extra FSI associated with this scheme.

Builder illegally selling property in open market

There have been cases reported where the builder has sold housing units reserved for EWS and LIG in the open market using fake allotment letters and bypassing the genuine beneficiaries. This is a violation of the public housing rules and regulations and results in loss to the government and the real applicant.

Steps taken by Mhada to solve these problems

To counter the issues of illegal increase in price of the housing units, Mhada has proposed to take over projects from the builder at the under-construction stage itself and hold a lottery. Since, the lottery happens at the under-construction stage, the beneficiary also has time to arrange for the payments.

Also, as part of the new housing policy draft submitted by the Maharashtra government, the developer has to necessarily submit details of the project on the Maha Awas App through the State Housing Information Portal as soon as the developer gets the commencement letter.

What are the different Mhada Boards?

The various Mhada Boards present are:

Konkan Housing and Area Development Board (KHADB)
Pune Housing and Area Development Board (PHADB)
Mumbai Housing and Area Development Board (MHADB)
Nagpur Housing and Area Development Board
Nashik Housing and Area Development Board (NSHADB)
Chhatrapati Sambhajinagar Housing and Area Development Board (AHADB)
Special Mhada Boards

Housing.com POV

Mhada has aligned with the central government’s Housing for All initiative and provides affordable housing in Maharashtra through lottery. With an intent to cater to the different segments of the society, the Mhada offers many different schemes with 20% inclusive housing scheme being one of them. This was identified to provide houses in affordable costs even at places where Mhada didn’t have or had lesser area of land. While this is a very sought after scheme as the project in which the 20% inclusive scheme is provided is mostly located in the prime areas, there have been challenges, many from the developer’s side that hinder its proper execution. Compliance to this has to be strictly ensured by Mhada so that more number of people can benefit from this scheme, going forward.

FAQs

What does Mhada’s 20% inclusive housing scheme imply?

Under this, if a developer is developing a property that is or more than 4,000 sqm, he has to necessarily reserve 20% of the total built-up area for housing units for the EWS and LIG segment.

Can a developer sell a plot in open market if Mhada doesn’t take it?

Yes. A developer can sell a plot in the open market if Mhada doesn’t buy it. However, note that he won’t get the FSI benefits attached with the land.

Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com

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