How To Buy A MHADA Flat?

The Maharashtra Housing and Development Authority (MHADA) is responsible for developing homes for lower and middle-income group houses across the state. In capital Mumbai, the MHADA has been developing affordable housing units in the suburban areas under the Pradhan Mantri Aawas Yojna. The organisation is also responsible for redevelopment of Chawls of the city.

The flats sold under the MHADA scheme are received well due to affordable costs. However, this year the cost has been more due to prominence of localities such as Lower Parel and Powai.

How to apply for a MHADA flat?

The MHADA rolls out schemes and conducts a lottery to allot flats. The housing scheme is announced every year where the applicant has to submit their application within the stipulated time, along with the earnest money deposit. However, an applicant should have fulfilled eligibility criteria for applying in the scheme. Also, buyers should know that there is a lock-in period for five years for the buyers during which they cannot sell the flat but can rent it out to earn rental income.

Also read: How To Apply For MHADA Lottery Scheme 2017

Eligibility criteria

• The applicant should be at least 18 years of age.

• The applicant or any of his close blood relations (parents, minor children) or spouse should not own any other property (residential plot, house) or rent from the MHADA or from any other registered cooperative society in their name.

• The applicant should have stayed for more than 15 years at a stretch in Maharashtra state to be eligible for the scheme

• The family income should be in the following range:

Economically weaker section (EWS): Up to Rs 25,000 per month

Lower-income group (LIG): Rs 25,001- Rs 50,000 per month

Middle-income group (MIG): Rs 50,001- to Rs. 75,000 per month

High-income group (HIG): Rs 75,001 and above

Do note that the pay should include only the basic pay, the dearness allowance, the bonus and the city allowance. It should not include any reimbursable allowances.

• The applicant cannot apply in more than one income group.

• PAN (permanent account number) card is mandatory for applying for the scheme.

How to buy a MHADA flat in resale?

Those who own flats MHADA flats are allowed to sell their units only after five years from the date of purchase. However, one needs to be cautious if one is buying a flat in resale. This is because usually sellers offer power of attorney of the property and not the registered deed to sell it during the lock-in period. Sale through the power of attorney is deemed illegal, and if the MHADA conducts a surprise raid, you are liable to be evicted.

Here is the process you have to follow to buy MHADA flat in resale:

• Ask the seller to obtain no-dues certificate from the society.

• Obtain the original allotment letter from the MHADA on the owner's name. Also, ask for the share certificate that the society might have given to the owner and the copy of the letter in which the owner is asking to transfer the certificate.

• The society membership transfer fee has to be equally shared between the two parties.

• Check the past balance of the electric meter and ask the seller to send a copy of transfer letter to you as well.

• The agreement to sale has to be made in buyer's name. Pay the stamp duty and registration charges. Once the property is registered in your name, you need to inform the MHADA for issuing the transfer certificate. You need to send the copy of registry papers and submit Rs 35,000 as the transfer fees. The entire process takes about six months to complete.

• You also need to transfer power of attorney on your name even if the property registration is done in your name.