Deputy Chief Minister of Maharashtra Devendra Fadnavis has called the current level of interest charged by Maharashtra Housing and Area Development Authority (MHADA) from the developers really higher and said that there is a need to lower it to make it at par with that of the Brihanmumbai Municipal Corporation (BMC). Fadnavis said that the Maharashtra Government would soon review the matter and ask MHADA to submit a proposal, so that the current rate of 18 per cent of compounded interest would be brought down to the rate charged by the BMC. 

Fadnavis was speaking on the second day of NAREDCO Maharashtra’s HOMETHON Property Expo 2023. “MHADA charging 18 per cent compound interest is really high and it is absolutely not right to charge so much of interest. The interest rate should be at par with the banks. I will certainly intervene in this regard and on NAREDCO Maharashtra’s representation, the Government will ask MHADA to put up a proposal; so that it could be brought at par with the BMC and we would have the same regulation in both the organizations,” he said. 

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Talking about the industry’s demand of reduction in premiums, Fadnavis assured that it was always under a genuine consideration of the Government, but it would be difficult to say when that would be taken. The Deputy CM assured that whatever was needed to be done for the betterment of the real estate industry and particularly those things, which would be passed on to the buyers, the Government would not hesitate in taking such decisions. 

“We are a proactive Government. With the constant dialogue and conversations, the decisions happen. With this continuous process, we will be able to take the decisions, which are in the best interest of the industry and the people,” added Fadnavis. 

He further said, “After Maharashtra started MahaRERA, the entire real estate industry has been transformed and the faith of small buyers in the industry has increased a lot. The developers following the MahaRERA rules have created a genuine market for the buyers and created a level-playing field. Many players from the corporate and non-corporate world are entering in the sector with ethical values.”