MHADA freezes interest on capitalisation of investment

The Nashik board of Maharashtra Housing and D evelopment A uthority (MHADA) board has frozen the interest on the c apitalisation of in vestment so as the price of th e a partments r emain the same. The interest on c apitalization is the interest it charges on the capital set asid e f or the p roject and given to the contractor. This ste p has been tak en as the housing body ha s no t been able to sell their hous - ing apartments constructed in Nashik and Aurangabad due t o cost of these a partment being higher tha n the market rates.

The MHADA officials said they were f acing a toug h time in selling the a partments w hich w ere constructed in 2015.

The housing bod y has constructed a t least 921 housing a partments in Nashik an d A urangabad. Out of th ese, maxim um buildings ha ve been constructed in Nashik.

“The pricing of thes e apartments has been on the lines of the pr operty ra tes in Mumbai as a gainst the rates in the l ocal pr operty market. T he cont ract was also issued a t these ra tes which a re hi gher,” said a MHADA official.

The fr eezing of the interest on c apitalization wi ll help in k eeping the pr ice of the a partment constant . “Every month, t he price of the apartment kept increasing due to inter est on c ap i - talization which made it difficult to sell them. W e now hope tha t peopl e c ome f orward to pur chase these apartments,” added the official.

The housing body has also planned to make cor rection in the selling rate of the flats by at least 20 percent. “We are trying to put our best ef - forts in or der to sel l these flats at the earliest. The final decision on ma king cor rection on selling rate of these flats is yet to be taken,” said a MHADA official.

The housing body has paid at least Rs 263 cr ore to t he contractor a fter the construction of the buildings in these two places. MHADA is awaiting a recovery of their investment made in this project.

“There ar e plans t o slash the prices of t he unsold blocks i n or der to a ttract people. T he ho using body had also issued a circular in order to c lear t he ra tes,” added an official.

The of ficials fr om the housing de partment also suggested that tha t the r esponsibility of selling these apartment must be gi ven to the contr actor as it was being dif ficult to sell the flats by the housing body.

The Nashik boar d of MHADA ha s so far sold a t least 129 a partments constructed in ar eas of Nashik and Aurangabad.

This step has been taken as the h ousing body has not been able to sell their apartments in Nas hik and Aurangabad due to its cost is higher than the market price