Maharashtra government allows resale of MHADA's 5% quota flats

The State issued a notification permitting the resale of Maharashtra Housing and Area Development Authority (MHADA) flats that were allotted under Maharashtra government's five per cent quota. Also, the government quota flats can now be mortgaged to any bank to earn the loan amount.

According to the notification issued by the urban development department, people who won flats under the government's 5 per cent quota will be permitted to sell them off permanently or mortgage then to raise the loan amount.

Most of these government quota flats are located in Mumbai, Thane, Navi Mumbai, Pune and Nashik.

"The State gives different kinds of incentives to the builder for a project and in return, the builder gives a certain number of constructed apartments to the government. Most of these flats are put on sale during MHADA lotteries and the remaining number is allotted under the 5 per cent quota reserved for artists, political leaders, and so on. The chief minister who also heads the urban development department allots these flats under the 5 per cent quota," a senior official from the urban development department said.

The official said that earlier resale of government quota flats to a third person in the open market was not allowed. "Many buyers wrote to the government urging to allow them to sell or mortgage these flats. Mostly quota flats are inherited property. When people move out of their cities or need money for treatment they want to sell or mortgage these flats. Keeping in mind such genuine cases, the government decided to allow resale of quota flats after seeking permission from the respective district collector," a government official said.

Kailash Patil, who deals in government properties in Mumbai and Thane welcomed the state's decision. He said that this decision will help many senior citizens and politicians who keep running around to sell their properties. "These people are usually in dire need of money to resolve various family problems. Besides, inherited flats cannot be shared among siblings and hence, selling them off is a better option. Therefore, more inventory is likely to come into the market after the resale of these quota flats," Patil said.