The circular, numbered PraAyo-2025/Pra.Kra.194/GruNidho-2 and issued from Mantralaya, Mumbai on 23 January 2026, follows a review of DPRs received under the scheme, which revealed a lack of uniformity in EWS unit pricing, built-up area calculations, and the No-Objection Certificates (NOCs) being obtained for construction. The decision draws on discussions at the third and fourth meetings of the State Level Appraisal Committee (SLAC), held on 11 August 2025 and 1 October 2025 respectively.

Mandatory beneficiary registration to check overpricing

Under the new guidelines, if the sale price of an EWS unit under the AHP component exceeds the current Annual Statement of Rates (ASR) by more than 20%, such projects will now be required to secure beneficiary attachment, or confirmed registration, of at least 25% of beneficiaries before actual construction work can begin. This is designed to ensure genuine buyer demand exists before a project proceeds, rather than pricing being set arbitrarily ahead of construction.

Similarly, for AHP-PPP projects where the EWS unit price exceeds the ASR rate by more than 20%, the same 25% beneficiary registration requirement will apply, but as a precondition before the project is granted the increased FSI sanctioned under PMAY or any other benefits under PMAY (Urban) 2.0. Once beneficiary registration is completed, such proposals must be resubmitted to the State Level Project Management Unit (PMU) before the scheme’s benefits can be extended.

Built-up area capped at 1.4 times carpet area

A significant homebuyer protection built into the guidelines caps the built-up area of EWS units at a maximum of 1.4 times the carpet area, for both AHP and AHP-PPP projects. This means implementing agencies cannot inflate the built-up area figure, which is often used as a basis for calculating sale price, beyond this defined ratio. The circular directs that this ratio be strictly adhered to while filling built-up area details in Annexures 5B, 5C and 5D, or while computing the sale price of units, preventing a common practice where inflated built-up-to-carpet ratios are used to justify higher prices for smaller usable spaces.

Mandatory NOCs before project submission

The guidelines note that most implementing agencies have either not submitted the required No-Objection Certificates or have simply stated that these would be submitted later, while presenting AHP and AHP-PPP proposals. Going forward, project proposals must be accompanied by three valid NOCs at the time of submission:

• A water supply NOC from the concerned Municipal Corporation, Municipal Council, Jal Jeevan Authority or other competent authority
• A sewerage/drainage NOC from the concerned Municipal Corporation, Municipal Council or competent authority
• An electricity supply NOC from MSEDCL or another government body, or the relevant authorised private power distributor

This is intended to ensure that projects granted approval have verified access to essential civic infrastructure before construction proceeds, reducing the risk of homebuyers moving into units without functioning water, sewerage or power connections.

No government liability for unsold units

The circular also clarifies that once a PMAY (Urban) 2.0 project is completed, the state government will bear no liability for any units that remain unallocated or vacant. This places the onus squarely on implementing agencies to ensure realistic project sizing and genuine demand assessment upfront, reinforcing the rationale behind the new beneficiary-registration requirement.

Applicability

All implementing agencies submitting AHP and AHP-PPP proposals under PMAY (Urban) 2.0 have been directed to ensure compliance with these guidelines while preparing and submitting future proposals. The circular has been issued digitally, carrying the reference code 202601231643582209 on the Maharashtra government’s official portal, and copies have been marked to Additional Chief Secretaries of the Urban Development Department, the Vice Chairman and CEO of MHADA, the Director of Municipal Council Administration, all Divisional Commissioners, all District Collectors, and all PMAY (Urban) 2.0 implementing agencies across the state.

Also Read: Maharashtra Implements ‘SNA-SPARSH’ System for Faster Fund Transfers under PMAY (Urban) and PMAY 2.0

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