NEW DELHI: Devendra Fadnavis, deputy chief minister of Maharashtra called the current level of interest charged by MHADA from the developers really higher and stated the need to lower it to make it at par with that of the BMC. Fadnavis stated that the state government would soon review the matter and ask MHADA to submit a proposal; so that the current rate of 18% of compounded interest would be brought down to the rate charged by the BMC.
“MHADA charging 18% 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,” said Fadnavis.
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. He further stated that the government has been discussing about many demands of the real estate industry.
“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,” said the deputy CM.
He was speaking at NAREDCO Maharashtra’s expo held in Mumbai.
