Relief in the form of concessions from MHADA was doled out on Tuesday evening to developers. The relief are for MHADA redevelopment projects and PMAY.
By Varun Singh
On Tuesday a major relief was announced for MHADA’s redevelopment projects and also for PMAY projects.
MHADA came out wth a circular with relief measures to builders, carrying out these projects. They got a breather of 9 months for payments to be made to the authority.
The major relief is concession for interest payable on the premium due for the redevelopment cases under DCR 33(5) and PMAY in the period from March 25 to December 24.
In view of pandemic COVID-19, by considering force majeure situation installment facilities granted falling in the period for this 9 months will be shifted to December 26.
This is for all proposals where the installment facility is granted as per policy.
The redevelopment policy of MHADA involves where a developer either gives premium or housing stock to MHADA for redeveloping its layouts.
Many developers pay this premium in installments and looking at the situation where real estate is one of the worst impacted sectors, this move will help the projects.
Taking the relief a notch higher up to December 26, no interest will be levied on the regular and default installments too.
This move came after CREDAI-MCHI had petitioned MHADA seeking relief.
This would allow developers to use the money they have for construction of the buildings instead. Thus tenants would benefit and also new homes will be built,
The circular includes that developers, who have defaulted in installment facility excluding grace period of three months before March 25, will have to pay regular interest as well as panel interest up to March 22.
The installment payable between March 25 to December 24 and the default installments payable before March 25, will have to be paid within 15 days from December 26, which is January 10, 2021.
The 9 months interest waiver on installments will not be applicable to proposals who fail due installment payments on or before January 10, 2021 and regular interest as well as panel interest will be charged to such proposals.
For availing this facility an application has to be made to concerned chief engineer and chief officer, who will approve it.
Senior MHADA official confirmed the reliefs granted on Tuesday to the redevelopment projects.
MHADA was declared as planning authority in May 2018, of the 114 layouts it has in the city. Of this many buildings are old and need urgent redevelopment. Many buildings are being redeveloped too and this move will benefit residents of these old buildings.
