Developers owe MHADA over Rs 100 crore as rent

Several developers owe the Maharashtra Housing and Area Development Authority (MHADA) over Rs 100 crore as rent for using its transit accommodation. Now, the Mumbai Repair and Reconstruction Board has decided to seek help from the Income Tax Department to find out properties of these developers and get them attached so as to later auction them to recover the money at stake. 

There are several thousands of transit camps across the city that have been developed by MHADA’s Repair and Reconstruction Board. Some of the transit camps that MHADA received was only after the mill lands across the city were developed by private developers. These builders handed over the transit camps to MHADA. 

The MHADA, on a rental basis for years, have been giving these transit camps to developers so that the latter can provide accommodation to tenants of buildings and slums that are being redeveloped. For example, at Standard Mills in Sewree and at another mill located in Lower Parel, the MHADA had given out close to 25 transit tenements to developers redeveloping under DCR 33(7) (redevelopment of cessed buildings), the rentals that the developers owe to the MHADA for renting out transit tenements in these mills stand at a whopping Rs 1.04 crore. 

Similarly, in another case, where close to 42 tenements from the transit camps at the Simplex Mill and another mill have been rented out, the developer owes the MHADA up to Rs 3.02 crore. A list of such offenders is being made at the MHADA’s Repair and Reconstruction Board. Once the entire list is ready notices will be sent out to respective developers. 

"The total amount, until now, exceeds Rs 100 crore. If the developers fail to pay the money they owe us, we will attach their properties and also carry out the auction to acquire the money that legitimately belongs to us," said Vinod Ghosalkar, chairman of the Mumbai Repair and Reconstruction Board, MHADA. 

Ghosalkar further added, "We have decided to approach the Income Tax Department to find out the properties belonging to these particular developers. This will help us to know where all the developers have their properties and it will enable us to get the money these developers owe us."

HOUSE ON RENT

MHADA, on rent, gives transit camps to developers so that the latter can provide accommodation to tenants of buildings and slums that are being redeveloped