MHADA's 18% interest worries Maharashtra Deputy CM
Real Estate

MHADA's 18% interest worries Maharashtra Deputy CM

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.

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
Technology

We’re building robots that flow, not just move

Founded in 2021, Flo Mobility is reimagining construction automation with vision-AI robots designed for seamless movement through complex sites. In conversation with CW, Manesh Jain, Founder & CEO, discusses the company’s origin, its LiDAR-free tech stack, and expansion plans in the Middle East and US.What inspired the name Flo Mobility? Why ‘Flo’ and not ‘Flow’?When we started the company in 2021, our focus was on building autonomous navigation systems for robots. Since our work centred around robot movement, ‘mobility’ naturally became part of the name. We wanted to co..

Next Story
Real Estate

We’re committed to setting benchmarks in sustainable luxury living

From a landmark land acquisition in Boisar to ambitious launches across the Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Bengaluru and Pune, Birla Estates is driving future-ready growth with a strong focus on sustainability, partnerships and premium living, firmly anchored in its LifeDesigned® philosophy. K T Jithendran, Managing Director & CEO, outlines the company’s premium, sustainable growth playbook in conversation with PRATAP PADODE, Editor-in-Chief, CW. Excerpts:Birla Estates recently acquired a 70.92-acre land parcel in Boisar, Maharashtra, for..

Next Story
Infrastructure Urban

Mumbai’s land crunch and ageing homes call for structured renewal

Founded in 2022, Etonhurst Capital Partners is a real-estate fund management platform focused on the Indian market. As the firm achieves the first close of Rs 1.8 billion for its debut Rs 5 billion fund, Bamasish Paul, Co-founder, Managing Partner & CEO, discusses its sharp focus on redevelopment-driven value creation in Mumbai’s urban core with CW. Excerpts:Etonhurst Capital has achieved a significant milestone with the first close of Rs 1.8 billion for its Rs 5 billion fund. What factors contributed to this early success and how do you plan to attract further investments to r..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?