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Approval by MHADA Authority for Revised Resolution on Levying Premium for Allocation of Additional Built-up Area under Regulation 33(5) through Mumbai Board
Approval by MHADA Authority for Revised Resolution on Levying Premium for Allocation of Additional Built-up Area under Regulation 33(5) through Mumbai Board
As per the new resolution, projects with plot areas less than 4000 sq. m. will be required to pay the premium in five installments.
For projects with plot areas of 4000 sq. m. and above, the premium will be payable in six installments.
Mumbai, October 3, 2025: Under Regulation 33(5), the MHADA Authority had earlier approved Resolution No. 6749 dated 11.07.2017, which permitted institutions and developers to pay the premium amount for allocation of additional built-up area in four equal installments with interest. However, based on a request from CREDAI-MCHI, the Authority has now approved an amendment to Resolution No. 6749. On the lines of the existing policy of the Municipal Corporation of Greater Mumbai (MCGM) regarding staggered payment of various charges/premiums for building permissions, MHADA has now allowed the premium for allocation of additional built-up area under Regulation 33(5) to be collected in installments.
Redevelopment of institutional buildings on MHADA layouts is carried out under Regulation 33(5) of the Development Control and Promotion Regulations, 2034. For such redevelopment, the institution is required to pay a premium on the additional built-up area that becomes available after deducting the existing built-up area from the total permissible built-up area.
As per the revised policy, projects with a plot area of less than 4000 sq. m. will pay the premium in five installments. The first installment (10% of the premium amount) must be paid within one month from the date of issuance of the Letter of Intent. The second installment of 22.5% will be due at the end of 12 months, the third installment of 22.5% at the end of 24 months, the fourth installment of 22.5% at the end of 36 months, and the fifth installment of 22.5% at the end of 48 months, all with applicable interest.
For projects with a plot area of 4000 sq. m. and above, the premium amount will be payable in six installments. The first installment (10% of the premium) must be paid within one month from the date of issuance of the Letter of Intent. The second installment of 18% will be due at the end of 12 months, the third installment of 18% at the end of 24 months, the fourth installment of 18% at the end of 36 months, the fifth installment of 18% at the end of 48 months, and the sixth installment of 18% at the end of 60 months, all with applicable interest.
If institutions/developers pay the entire premium amount within one month from the date of issuance of the Letter of Intent, no interest will be charged. For the remaining installments, the amount payable will be calculated as: principal installment + SBI’s prevailing one-year MCLR interest rate + 2%, either as simple interest on the outstanding premium or as per the actual applicable compounding rate at the time of payment, whichever is higher.
In case of non-payment or delay beyond the prescribed due dates, penal interest at a flat rate of 18% per annum will be applicable on the outstanding premium amount. The entire premium must be paid within the total period stipulated in the Letter of Intent. Failure to do so will make it mandatory to pay the balance premium with an additional simple interest of 18% for the extended period.