The Confederation of Real Estate Developers Association of India (Credai) in Maharashtra lauded the state government’s decision to specify reservation of 20 pc flats for the weaker section, in plans on one acre land, but said the resolution is not clear enough for the developers to follow.

The state government has come up with a low-cost housing policy. As per the notice issued by the under secretary, urban development dept, every developer having structure in one acre or above have to reserve 20 pc of the flats for the weaker section. It also said the modification would be applicable to the cities with over 10 lakh population which include Mumbai, Pune, Thane, Nashik and Nagpur.

It also said 20pc would be of both flats and plotting plans and would not be included in the builders’ floor space index. On the completion of project these 20 pc flats should be handed over to MHADA at the ongoing market rate of the construction cost. The affordable flats will be allotted by the civic body on the basis of the lottery method. If the civic body will not take over the flats in six months then the builder has every right to put the flats on sale.

The apex body of the builders lauded the decision to increase the land limit to one acre. At present city below 10 lakh population has been excluded, but they can be added in latter stages.

This decision may cut down the rowing slum in the city and provide affordable housing unit to the weaker section. The only problem is plotting schemes. If the MHADA is going to buy the flats after completion it would block the investments and also lead to hike in the expenses at the developers end.

The governing body suggested the civic body should allot the 20pc flats during the construction period to prevent such issues. There were also some other smaller issues which the Credai will talk to the state government in latter part.