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Manju AB
Mumbai, Jan 6: In the second bailout exercise in the last two years, the government bodies and public sector undertakings are pumping in funds into the Maharastra Housing & Development Authority (Mhada) by purchasing Mhada flats located at Oshiwara and Powai in Mumbai's western suburbs.
While ONGC proposes to purchase 422 flats, Central Warehousing Corporation plans to buy 13 flats, Andhra Bank 15 flats and Punjab National Bank 30 flats.
On bulk purchases, Mhada gives a 10 per cent discount. The flats will be sold at Rs 2,300 per square feet.
Sources at Mhada say, "We need funds to increase our cross-subsidies and, therefore, cannot afford to offer huge discounts on the flats. But, we would certainly offer around 10 per cent discount on bulk purchases."
This time round, the bailout materialised after the Mhada's recently announced scheme with revised rates to sell around 250 flats came a cropper. They were able to sell just 41 flats at varying rates of between Rs 2,100 and Rs 2,300 per square feet.Mhada's earlier rates were slightly higher.
According to Mhada officials claims that more flats could have been sold had the sale conditions been less stringent. For instance, Mhada sale condition states that buyers should deposit the entire amount through demand draft within 90 days. Buyers obviously found it difficult to comply with this condition as they needed income-tax clearance.
The eligibility criteria for the scheme was also stringent which, according to sources, may have dissuaded propective buyers. Some of the conditions were that the applicant to the Mhada flats should be about 18 years of age on the date of submission of application form. The buyer should have a domicile certificate stating 15 years of stay in Maharashtra. Conditions like these really put off some buyers and made scores of prospective buyers ineligible.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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