Mumbai: Established to provide affordable housing for the weaker section of society, the Maharashtra Housing and Area Development Authority has reserved 204 flats for the Higher Income Group worth Rs 1.3 crore in this year’s lottery. The MHADA lottery for 819 houses is set to be held on November 10.
What comes as a shock is that the authority has received nearly 36 houses, out of 204, as a housing stock from a realty project. In other words, MHADA has not spent any money to build these houses yet it has priced them above Rs 1.3 crore. These houses are located at Lower Parel along with the most expensive MHADA lottery flat worth Rs 1.95 crore.
A senior official revealed that MHADA offers most expensive houses to recover its huge losses by selling flats of Economic Weaker Section and Lower Income Group.
“There is a profit margin of 15 per cent on selling Middle Income Group houses and 25 percent on Higher Income Group Houses. There is no profit on EWS and LIG homes, he added. The official added that we recover the basic construction, land cost and other miscellaneous charges by selling EWS and LIG homes.
This clearly states that by selling flats flats for Rs 1.95 crore, the authority earns a profit of nearly 47 lakhs. The authority states that this would help them recover the losses. However, by selling these 36 flats where MHADA does not spend any construction cost, the authority has priced it as one of the most expensive flats in this year’s lottery.
It should be noted that MHADA is offering the least number of EWS houses in this year’s lottery. There are eight EWS flats in this year’s MHADA lottery. The Middle Income Group and the Higher Income Group have 281 and 338 houses reserved. The MIG flats are located at Pratiksha Nagar, Unnat Nagar, Charkop, Siddharth Nagar and Gaikwad Nagar at Malad, whereas, the HIG flats are located in plush localities of Lower Parel, Tunga-Powai, Charkop-Kandivali and Shimpoli-Kandivali.
The authority is facing flak from potential buyers for the most expensive flat in this year’s lottery. The cost of HIG homes this year has gone upto 1.95 crore.