Bring in premium policy, says Shiv Sena; called ‘pro-builder’

Claiming that surrender of housing stock to Mhada was the prime reason behind the failure of the affordable housing scheme, the Shiv Sena has demanded the introduction of a premium policy. Under this policy, the developers will pay a certain premium to the government in lieu of the freedom to sell flats at the rates determined by them. According to experts, the Sena is backing the builder lobby by demanding a pro-developer policy. Congress leader and former chief minister Prithviraj Chavan has advocated a housing stock policy and claimed the affordable housing scheme would fail if the premium policy is brought in.

Following a meeting between Shiv Sena chief Uddhav Thackeray and housing minister Prakash Mehta on Friday at Matoshree, it is expected the much-awaited policy for housing will be announced any time next month.

Shiv Sena legislator from Kurla, Mangesh Kudalkar made a presentation before Mr Mehta in the presence of Mr Thackeray. He said the housing stock policy is “stuck” and did not get a response from builders as they have to hand over 67 per cent flats out of those constructed to the Maharashtra Housing and Area Development Authority (Mhada) at no cost. “It was not affordable to the developer and hence, it failed,” he said.

The housing stock policy was brought during Prithviraj Chavan’s tenure. Mr Chavan said, “Keeping in mind the interest of common people, we brought the policy of housing stock... Unfortunately, we didn’t get the expected response from developers.”

Asked about the premium policy, Mr Chavan said it would favour builders. “Developers will be allowed to pay a certain premium on plots that have to be developed and they will be free to sell flats at commercial rates,” he said.

In Mr Chavan’s policy, there was no cap on the area of plot up to which a developer could pay premium, and developers had to surrender 67 per cent of the total constructed area to Mhada.

A senior executive engineer of Mhada revealed the body had sent a proposal to the government to opt for premium from builders for the redevelopment of Mhada colonies where the plot measures up to 2,000 square meters and housing stock where the area of the plot is more than 2,000 square metres.