Almost two years after it unveiled an ambitious plan to generate low income housing from private developers, the Maharashtra government has watered down its own policy by severely restricting the plots which fall under the scheme.
In January 2012, the government released its draft Inclusive Housing Policy. This made it mandatory for developers of residential plots of 2,000 square metre and above to reserve 20 per cent of the land for low income group housing. The builder was expected to construct small flats on this land to be sold to the State housing agency, Maharashtra Housing and Area Development Authority (MHADA).
However, the final policy, which was introduced this month, only applies to plots which are 4,000 square metres or more. The developer can hand over the 20 per cent reserved land to MHADA, or can do so after constructing affordable flats on the plot.
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However, critics say there are barely any plots of this size in Mumbai, which means the policy essentially excludes private housing projects in the city. “The scheme will not apply to Mumbai where the need for affordable housing is the greatest as real estate prices are so high. The policy does not seem to apply to redevelopment schemes which tend to be larger,” says housing activist Chandrashekhar Prabhu.
A vulnerable clause
He also points to a clause in the policy which is liable to misuse. The scheme says if the State housing agency does not claim the flats reserved for inclusive housing within six months, the builder can sell them in the open market. “This could be exploited by builders in tandem with pliable officers in MHADA who delay the purchase of the flats,” adds Mr. Prabhu.
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However, government officials say the policy has not been diluted. “We are following the Centre’s affordable housing policy guidelines which mainly apply to plots of over 4,000 square metre,” says Urban Development Secretary Manukumar Shrivastava. He added that there were enough safeguards in the policy to prevent its misuse.