At a time when the real estate market is at a low, the Maharashtra Housing Area and Development Authority (MHADA) has presented a deficit budget for the financial year 2018-19 by posting a loss of Rs 221.12 crore
The total budget is Rs 7,010.62-cr, the authority has an income of Rs 6,789.51-cr. Representation Pic
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At a time when the real estate market is at a low, the Maharashtra Housing Area and Development Authority (MHADA) has presented a deficit budget for the financial year 2018-19 by posting a loss of Rs 221.12 crore.
While the total budget is of Rs 7,010.62 crore, the housing authority has an income of Rs 6,789.51 crore. Last year, initially the budget was in profit, but when they presented a revised one later, it had a deficit of Rs 1,417.75 crore. The budget, which was presented on Monday, mentions development of 15,430 affordable houses worth Rs 4,398.25 crore and construction of 947 houses (mainly in South Mumbai). The authority has already generated Rs 741 crore revenue by selling off lottery houses and has estimated a further recovery of Rs 3,966 crore through lottery of houses across the state.
A MHADA official said, "The houses will be constructed in a timely manner, but we won't be able to generate much revenue. Usually, we are unable to recover the entire construction cost, as we build them for economically weaker sections and lower income groups."
Also read: MHADA pulls up defaulting builders for delay in construction of projects
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