Mhada lottery to be applied to ULC flats in Thane, Ulhasnagar

MUMBAI: Nearly seven years after the state government decided to not use chief minister’s discretion to dispose the flats generated under the Urban Land Ceiling (ULC) Act, over 300 of 1,256 flats accumulated under the Act in Mumbai, Mumbai Metropolitan Region (MMR) will now be sold to the public through a Mhada (Maharashtra Housing and Area Development Authority) lottery. The remaining housing stock is expected to be used as the quarters for government employees and police.

The state government has a stock of 1,256 flats accumulated from the housing projects built on the excessive land denounced as per ULC Act, which was repealed in the state in 2007. As per the Act, five to 10% of the flats from the projects implemented on the excessive land were mandated to be handed over to the state government.

After a PIL in the Bombay high court for the disproportionate distribution of the flats, the state government stopped the allotment using CM’s discretionary powers in 2015. The state government then decided to use the flats as government quarters after its assurance to the court to chalk out a policy to dispose of the accumulated flats.

As finalised in a recent meeting, the urban development department has written to two of its departments and Maharashtra police to register their requirements from the available flats. Of them, highest 606 flats are in Thane, 427 in Ulhasnagar, 109 in Mumbai and a few in other districts like Pune, Nashik, Solapur and Kolhapur. Most of the Mumbai flats are in the eastern and the western suburbs and some of them cost as high as ₹2 crore. The size of flats is up to 800 square feet carpet area.

“Most of the Mumbai flats are expected to be claimed by the government for the employees, while chunk of Thane and Ulhasnagar flats will go to police. We expect at least 40% of Ulhasnagar and 30% of Thane flats to go unclaimed. The government departments and police have been asked to register their claims by the end of March. We will hand over the remaining flats to Mhada to dispose them through their regular lottery,” said an official from the UDD.

The price fetched for the flats from their sale will be retained by the state government after sharing 10% of the cost with Mhada as their processing fee. The state will sign an MoU with the Mhada for the sale. The state government will have to pay the construction cost of the flats to the developers of the project. The cost comes at the existing ready reckoner rate at the time of the completion of the project with range as low as ₹5 to ₹10 lakh. Another UDD officer said that the houses are scattered in various buildings but are well constructed.

“The sale through Mhada lottery is expected to garner good response for them when made available,” he said.