MHADA's New Policy Eases Financial Burden On Homebuyers As Maintenance and Tax Charges To Apply Only After Possession

In a landmark reform aimed at providing relief to homebuyers, the Maharashtra Housing and Area Development Authority (MHADA) has announced that maintenance charges and property taxes for its scattered housing units and plots will now be applicable only from the date of possession.

This major policy change is set to benefit thousands of prospective homeowners participating in its popular lottery schemes across Maharashtra.

Previously, beneficiaries were required to pay these charges from the date of allotment, even if possession of the property was delayed. This often resulted in undue financial strain as the properties remained under MHADA’s control until keys were handed over. The new policy, which aligns charges with actual possession, addresses this long-standing grievance and promotes a more equitable system.

“Flats and plots remain MHADA’s responsibility until possession is granted,” MHADA CEO and Vice Chairman, Sanjeev Jaiswal stated during a recent meeting. “Beneficiaries should not bear any financial burden for delays beyond their control. This decision ensures justice and fairness for all," he said.

The reform also introduces greater transparency. MHADA’s Executive Engineers will now include all pending charges, such as maintenance fees and property taxes, in the advertised sale price of flats and plots. This measure will prevent hidden costs from surprising buyers after allocation.

For beneficiaries who have already taken possession and are currently being charged by their housing societies, MHADA will directly settle these dues with the societies, adjusting the expenses in future housing projects. However, those who have already cleared these charges themselves will not be eligible for refunds.

Additionally, to resolve outstanding dues from previous months, MHADA will utilize cushion funds set aside for liabilities and premiums linked to specific locations. This ensures that beneficiaries are not burdened with costs arising from administrative delays.

The policy change reflects MHADA’s ongoing commitment to fairness, transparency, and efficiency in housing allocation. Beneficiaries awaiting possession of their new homes can now look forward to a smoother and more financially secure transition to homeownership.