MHADA reverses steep fee hike on NOC Revalidation

02 Nov 2023 CW Team

In a significant win for the city's developers, the Maharashtra Housing Area Development Authority (MHADA) has reversed its decision to impose an annual fee of Rs 10 lakh for revalidating its no objection certificate. Earlier this year, MHADA CEO and vice-president Sanjeev Jaiswal had increased the fee from Rs 20,000 to Rs 10 lakh in an attempt to discourage builders from obstructing the redevelopment of old and deteriorating buildings.

Instead, MHADA has introduced an amnesty scheme for the first six months, allowing the revalidation of all pending NOCs for a flat fee of Rs 1 lakh, regardless of the plot area. After the amnesty period, any pending NOC can be revalidated by paying Rs 5 lakh per year.

Subsequently, for valid NOCs requiring revalidation, the fee will be calculated based on the plot area, ranging from a minimum of Rs 50,000 for a 500-square-meter plot to a maximum of Rs 6 lakh for an 8,000-square-meter plot. The steep increase in fees had been challenged by Credai-MCHI, a representative body of the real estate industry, which brought the issue to the attention of the state housing department.

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