MHADA justifies high prices of flats on block

Under flak for "unaffordable" prices of flats, which are on block, constructed by Maharashtra Housing and Area Development Authority, the state government has conceded that the "mismatch" exists between the prices of tenements and the income slabs of applicants.
MHADA is the state builder which constructs tenements for citizens at affordable rates compared to private builders.
The state agency offers flats located in various parts of the metropolis for sale under three income brackets - low, medium and high.
The prices of tenements/houses put on the block this year in the metropolis through digitised lottery system have attracted huge criticism from citizens, saying they are almost at par with the ones offered by private constructors.

Though the winners of lottery system this time may not get any respite, the state may realign the prices of MHADA houses in the near future.
The categories of houses and the income brackets set for it will be rectified in the long run, according to sources in the Housing department.

This mismatch between the income levels set and categories of the lottery winners has come to the notice of the housing department and it would be rectified, they said.
However, officials pointed out that current prices of houses are justified taking into consideration the construction costs involved.
"We will not be able to reduce or rectify the prices of the houses this year because MHADA is incurring high costs to build them. But next year, we can realign the categories and income levels so that lottery winners are not burdened," an official said.

Earlier, Chief Minister Prithviraj Chavan had rejected alliance partner NCP's demand to reduce the prices of tenements, saying MHADA does not indulge in profiteering.
"The rates of MHADA flats are 40 per cent lesser than the prevailing market prices," he had said.