Maharashtra waives Rs 400-crore interest on overdue service charges on MHADA flats

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Maharashtra Housing Minister Jitendra Awhad on Tuesday announced waiver of Rs 400 crore interest on unpaid service charges by the flat owners in Maharashtra Housing and Area Development Authority (MHADA) colonies in Mumbai.


An amnesty scheme is being implemented by the Mumbai Board of the authority from April 2021 for recovery of service charges, Awhad said, adding under this scheme, the government has waived the entire interest due from 1998 to 2021.


The minister was speaking to reporters after launching MHADA's new e-billing system for service charge payment at his official residence in the presence of MHADA officials.


"The state government is always sensitive towards the common man. Hence, the (unpaid) interest (of Rs 400 crore) on service charge amount has been completely waived, resolving an issue which has been pending for 23 years," Awhad said.


He said citizens (MHADA flat owners) have to pay service charges, but they can pay them in five years or ten installments.


"They can pay as per their convenience, but they will have to pay at least two installments every year," the minister said. He said introduction of the e-billing system for payment of service charges was a historic decision of MHADA and it will benefit around 1.46 lakh residents in 56 colonies falling under the jurisdiction of the Mumbai Board.


According to MHADA officials, service charges are levied for various types of facilities provided by the starter-run housing agency in its colonies such as maintenance of water pumps and salaries of housekeeping staff among others.