MHADA charging 18% interest a big concern, says Devendra Fadnavis

Deputy chief minister Devendra Fadnavis on Saturday assured developers that the government will look into their demand to lower the 18% compoundable interest charged by Maharashtra Housing and Area Development Authority (MHADA) on instalments and premium payments and bring it on par with the Brihanmumbai Municipal Corporation (BMC) charges.Fadnavis stated that the state government would soon review the matter and ask MHADA to submit a proposal; so that the current rate of 18% of compounded interest would be brought down to the rate charged by the MCGM.

“MHADA charging 18% compound interest is really high and it is absolutely not right to charge so much of interest. The interest rate should be at par with the banks. I will certainly intervene in this regard and on NAREDCO Maharashtra’s representation, the government will ask MHADA to put up a proposal; so that it could be brought at par with the MCGM,” Fadnavis said at a NAREDCO conference.About the industry’s demand of reduction in premiums, Fadnavis assured that it was always under a genuine consideration of the government, but it would be difficult to say when that would be taken.The minister assured that whatever was needed to be done for the betterment of the real estate industry and particularly those things, which would be passed on to the homebuyers, the government would not hesitate in taking such decisions. He further stated that the Government has been discussing about many demands of the real estate industry. “We are a proactive government. With the constant dialogue and conversations, the decisions happen. With this continuous process, we will be able to take the decisions, which are in the best interest of the industry and the people,” added Fadnavis. After Maharashtra started MahaRERA, the entire real estate industry has been transformed and the faith of small buyers in the industry has increased a lot. The developers following the MahaRERA rules have created a genuine market for the buyers and created a level-playing field. Many players from the corporate and non-corporate world are entering in the sector with ethical values, he said.