MHADA's 18% interest worries Devendra Fadnavis
Real Estate

MHADA's 18% interest worries Devendra Fadnavis

Devendra Fadnavis, the Deputy Chief Minister of Maharashtra, remarked that the current interest rates imposed by MHADA on developers were excessively high. He expressed the necessity to reduce them to align with the rates set by the BMC. Fadnavis announced that the state government would review the issue promptly and instruct MHADA to present a proposal. The goal was to decrease the current compounded interest rate of 18% to match the BMC's rate.

Fadnavis commented, "Charging 18% compound interest by MHADA is significantly elevated, and it is inappropriate to impose such a high interest rate. The interest rate should be on par with that of banks. I will intervene in this matter, and upon the representation from NAREDCO Maharashtra, the government will request MHADA to submit a proposal. This will bring it in line with the BMC, ensuring uniform regulations in both organisations."

Regarding the industry's request for a reduction in premiums, Fadnavis assured that the government was genuinely considering it. However, he added that it was challenging to determine when a decision would be made. He emphasised that the government had been deliberating on various demands from the real estate industry.

"After Maharashtra initiated MahaRERA, the entire real estate sector underwent a transformation, significantly boosting the confidence of small buyers. Developers adhering to MahaRERA rules established a fair market for buyers, fostering a level playing field. The sector is now witnessing the entry of ethical players from both corporate and non-corporate backgrounds," stated the deputy CM.

Your next big infra connection is waiting at RAHSTA 2025 – Asia’s Biggest Roads & Highways Expo, Jio World Convention Centre, Mumbai. Don’t miss out!

Devendra Fadnavis, the Deputy Chief Minister of Maharashtra, remarked that the current interest rates imposed by MHADA on developers were excessively high. He expressed the necessity to reduce them to align with the rates set by the BMC. Fadnavis announced that the state government would review the issue promptly and instruct MHADA to present a proposal. The goal was to decrease the current compounded interest rate of 18% to match the BMC's rate. Fadnavis commented, Charging 18% compound interest by MHADA is significantly elevated, and it is inappropriate to impose such a high interest rate. The interest rate should be on par with that of banks. I will intervene in this matter, and upon the representation from NAREDCO Maharashtra, the government will request MHADA to submit a proposal. This will bring it in line with the BMC, ensuring uniform regulations in both organisations. Regarding the industry's request for a reduction in premiums, Fadnavis assured that the government was genuinely considering it. However, he added that it was challenging to determine when a decision would be made. He emphasised that the government had been deliberating on various demands from the real estate industry. After Maharashtra initiated MahaRERA, the entire real estate sector underwent a transformation, significantly boosting the confidence of small buyers. Developers adhering to MahaRERA rules established a fair market for buyers, fostering a level playing field. The sector is now witnessing the entry of ethical players from both corporate and non-corporate backgrounds, stated the deputy CM.

Next Story
Real Estate

Vitizen Hotels Signs Deal at Manyata Tech Park

Vikram Kamats Hospitality, as part of its ongoing expansion in key metropolitan markets, announced that its material subsidiary, Vitizen Hotels, has signed a long-term lease agreement for a 45-key hotel property at Manyata Tech Park, Bengaluru.Strategically located in the city’s prominent IT hub, the property is well-positioned to serve corporate travelers, business professionals, and long-stay guests. The addition aligns with the company’s asset-light growth model, leveraging long-term leases to expand its footprint in high-demand urban markets.The hotel is expected to strengthen the comp..

Next Story
Infrastructure Transport

CONCOR Signs MoU with BPIPL to Operate Container Terminal at Bhavnagar Port

Container Corporation of India (CONCOR) has signed a Memorandum of Understanding (MoU) with Bhavnagar Port Infrastructure (BPIPL) on September 4, 2025, in New Delhi to operate and maintain the upcoming container terminal at the northside of Bhavnagar Port, Gujarat.BPIPL had earlier entered into an agreement with the Gujarat Maritime Board (GMB) in September 2024 for the port’s development. Under this arrangement, 235 hectares of land has been leased to BPIPL for 30 years, with provision for expansion by an additional 250 hectares.The new terminal is expected to significantly enhance logistic..

Next Story
Infrastructure Transport

Concord Launches India’s First Indigenous Zero-Emission Rail Propulsion

Concord Control Systems (CCSL), a leader in embedded electronics and critical rail technologies, has announced the development of India’s first fully indigenous zero-emission propulsion system, marking a significant step toward the country’s railway electrification and net-zero goals for 2030.Powered by Lithium Iron Phosphate (LFP) batteries and featuring a DC chopper-based drive, the propulsion system eliminates idling losses common in diesel engines, offering higher efficiency, lower costs, and zero emissions.What sets this innovation apart is its completely indigenous design. Except for..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?