The Maharashtra government has asked the state's housing and area development authority, MHADA to compensate property owners under the Land Acquisition Rehabilitation and Resettlement Act, which stipulates payment at 2.5 times the prevailing market rate across the state.
MHADA officials have stated that the decision would impact the process of land acquisition in the state for the development of affordable housing projects in the coming years. The Authority has appealed the state government that the Act does not apply to the Authority and requested to keep the MHADA out of the Land Acquisition Act.
Officials have further stated that MHADA develops affordable housing units with marginal profits. About 60 percent of the total houses built by the authority are constructed for economic weaker sections and low-income groups. The Authority gains a marginal five percent profit by selling homes for middle-income groups and 10 percent on high-income group flats.
It should be noted that MHADA has its own Act which provides for acquiring land and properties, payment of compensation in municipal and rural areas.
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