The Maharashtra Government has stepped in to correct an unexpected anomaly in residential rent charges for employees moving into the new Bandra government complex. Despite having flats that are only 1 square foot (321 sq. ft.) over the lower-rate threshold, employees were facing significantly higher monthly charges. A new Government Resolution (GR), issued by the General Administration Department on October 13, 2025, has fixed the problem.

The Origin of the Problem

The issue arose during the construction of a new government residential complex in Bandra, which was undertaken to relocate officers and employees from an old colony being demolished for a High Court building. While the earlier standard for the lower-rate bracket was 320 sq. ft. carpet area, the new residential units were constructed with a slightly larger area of 321 sq. ft.

A Costly Single Square Foot

Under the existing rules, government housing charges were levied based on carpet area slabs:

  • For 320 sq. ft. or less: The applicable License Fee was ₹520/- and the Service Charge was ₹135/-.
  • For area exceeding 320 sq. ft. (321 sq. ft. and above): The License Fee rose to ₹880/- and the Service Charge increased to ₹185/-.

The government noted that the employees residing in the new 321 sq. ft. apartments were consequently forced to pay the higher slab rates. This meant that for merely one additional square foot of space, the employees were burdened with an extra ₹360/- per month.

Government Intervention and Retrospective Relief

Taking cognizance of this unintended financial burden, the government approved the proposal to treat the 321 sq. ft. apartments as 320 sq. ft. for the purpose of calculating the charges.

As per the GR, the employees in the new Bandra government complex will now be charged:

  • License Fee: ₹520/-
  • Service Charge: ₹135/-

This decision is strictly applicable only to the newly constructed government colony in Bandra. Crucially, the resolution is effective retrospectively, meaning the revised lower charges will apply from the day the employees were shifted from the old Bandra colony to the new premises.

The Executive Engineer (Property Management) has been directed to carry out the necessary action to implement the lower charges and submit a report to the government.

Also Read: Government stress fund to revive stuck SRA projects

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