HomeDaily NewsMumbai: MHADA affordable housing lottery applicants seek lower EMD

Mumbai: MHADA affordable housing lottery applicants seek lower EMD

In its upcoming housing lottery, the applications for which will close on December 10, applicants will have to pay the MHADA an EMD between Rs 25,000 and Rs 75,000, depending on the group’s financial status.

FOLLOWING COMPLAINTS from residents applying for the Maharashtra Housing and Development Authority’s (MHADA) Mumbai board affordable housing lottery, in future, the MHADA may consider reducing the ernest money deposit (EMD) that applicants are expected to pay at the time of submitting their applications.

In its upcoming housing lottery, the applications for which will close on December 10, applicants will have to pay the MHADA an EMD between Rs 25,000 and Rs 75,000, depending on the group’s financial status.

A senior official said that a number of applicants have claimed that they found the EMD to be too high. They contended that since the MHADA gets no benefit from the EMD, it should consider reducing the amount. Applicants have urged the MHADA to make the EMD uniform across all income groups, enabling the applicants to submit more than one application and also enhance the response to the lottery.

Explained

MHADA gives itself chance to sell more

In 2017, MHADA received 66,000 applications for 819 flats in its annual housing lottery, but was unable to sell 16 homes across income brackets. The Ernest Money Deposit (EMD) for the MHADA lottery varied from Rs 15,000 to Rs 75,000. Making the EMD uniform by reducing the amount may mean fewer unsold homes for MHADA, as people may be able to apply for more than one home in income groups in which the EMD is higher. Since applications for this year’s housing lottery are already open, the move may be considered next year.

The EMD directly goes to the bank and if an applicant does not win a house in the lottery, the amount is returned to the applicants’ bank accounts within 30 days.

Sources in the MHADA said that if an applicant is in the economically weaker section (EWS) category, the EMD for a single application is Rs 15,000. While for the lower income group (LIG), the EMD is Rs 25,000, it is Rs 50,000 for the middle income group (MIG) and Rs 75,000 for the higher income group (HIG).

“If any of the above group applicants want to apply for two houses, he has to pay a higher EMD,” said an official.

A senior official said that if the EMD amount is lowered, the move will be good for both the scheme and the applicants. “As lottery applications have already been submitted this year, lowering the EMD amount may be considered for lotteries in the future,” he added.

On November 3, MHADA had announced December 16 as date for the lottery of the Mumbai board, offering 1,384 “affordable homes”. The houses to be allotted have been divided into four segments based on the monthly income of the applicants. The monthly salary of an applicant seeking an EWS house cannot be more than Rs 25,000. For LIG homes, the salary slab is between Rs 25,001 and Rs 50,000. While for MIG homes, the monthly salary has to be between Rs 50,001 and Rs 75,000, for HIG homes, it has to be above Rs 75,000.