On 11 December 2024, a crucial circular was issued by the Office of the Joint Director, Town Planning and Valuation, Maharashtra, outlining guidelines for determining market value for the registration of deeds for flats allotted by MHADA. This directive aims to streamline processes in compliance with Regulation No. 3.8 of the Unified Development Control and Promotion Regulations (UDCPR).
Key Provisions of the Circular
Market Value Determination: The market value for MHADA-allotted flats will be based on predetermined prices by government bodies, including MHADA, rather than the Annual Valuation Table (ASR). This deviates from the usual Rule 4 (6) of the Maharashtra Stamp (Determination of the True Market Value of Property) Rules, 1995.
Inclusive Housing Regulation (3.8): The circular highlights that Inclusive Housing is mandatory for municipal areas with populations exceeding 10 lakhs. This ensures 20% of a plot or FSI in housing schemes is reserved for Economically Weaker Sections (EWS) or Low-Income Groups (LIG). The developer can meet this obligation by:
- Providing developed plots of 30–50 sq.m.
- Handing over 20% of the plot area to MHADA.
- Constructing affordable tenements on-site or within 1 km of the project.
Exemptions from Regulation 3.8: Certain developments, such as individual bungalows, staff quarters, and housing schemes already providing affordable housing under other laws, are exempt from these provisions.
Sale and Registration Procedures:
- Developers must allocate EWS/LIG tenements as per MHADA’s allottee list or sell at construction cost plus a 25% markup.
- If MHADA fails to act within six months, the Planning Authority will take over, and developers may proceed independently thereafter.
Implications for Developers and Buyers
This circular seeks to facilitate affordable housing while ensuring equitable practices in property registration. Developers are incentivized to align with the UDCPR by allowing additional FSI or Transfer of Development Rights (TDR) under specific conditions.
Future amendments to Regulation 3.8 will automatically apply, ensuring the circular remains relevant to evolving policies.
Conclusion
This regulatory update reaffirms Maharashtra’s commitment to inclusive housing. It balances urban development with the goal of providing affordable housing to underserved populations, thereby strengthening trust in MHADA’s initiatives.