In a key financial decision aimed at supporting affordable housing initiatives, the Maharashtra government has approved a fund allocation of ₹5 crore to the Maharashtra Housing Development Corporation (MahaHousing) from the Maharashtra Shelter Fund.
As per the Government Resolution (GR) issued on April 20, 2026, the funding has been sanctioned to help MahaHousing meet its immediate financial obligations, including loan repayments, interest liabilities, office expenses, employee salaries, and other administrative costs.
MahaHousing was originally established to execute large-scale housing projects under the Pradhan Mantri Awas Yojana (Urban). The corporation had recently requested financial assistance, citing the need to pay ₹2.31 crore towards loan installments and interest due in March 2026, along with an additional ₹5 crore requirement to manage operational and administrative expenses.
Considering the urgency, the state government has approved the ₹5 crore as a special provision from the Maharashtra Shelter Fund.
However, the government has clearly stated that this is not a grant but a recoverable fund. MahaHousing will be responsible for repaying the entire amount to the Shelter Fund on priority. The repayment will attract an interest rate of 3% or the prevailing bank deposit rate, whichever is higher. The government also retains the authority to revise the interest rate from time to time.
Additionally, MahaHousing has been directed to ensure that repayment is prioritized from its future revenues. The funds must strictly be used for the purposes outlined in the proposal, ensuring financial discipline and accountability.
The amount will be transferred to MahaHousing’s designated bank account held with Indian Bank’s BKC branch in Mumbai.
This move highlights the state government’s continued push to sustain housing projects under PMAY (Urban), while also maintaining financial oversight on state-backed housing agencies.
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