The Maharashtra Housing and Area Development Authority (MHADA) in Mumbai has decided to revise its policy regarding the sale of fractional plots in colonies, following a rent increase. Moving forward, fractional plots will be sold with a likely fixed rate of 100 percent ready reckoner rate. This change is part of MHADA's strategy to boost revenue and ease the financial pressure on the exchequer caused by the BDD Chaal project.
MHADA's 104 plots contain various subplots, with some designated as fragmented plots where no construction is allowed. During redevelopment, these fractional plots were typically allocated to the corresponding cooperative housing societies. Cooperative societies with adjacent land were granted these plots, enabling numerous redevelopment projects.
Previously, MHADA only benefited from such fractional land through premiums, providing these plots for building redevelopment at no cost. However, these plots will now be put up for sale, resulting in dual revenue streams for MHADA from both sales and premiums.
