Deputy Chief Minister Devendra Fadnavis Decides To Withdraw MHADA Powers

Mumbai, 13th January 2023: Maharashtra Deputy Chief Minister and Housing Minister Devendra Fadnavis have decided to withdraw the increased powers given in just four months to speed up the projects implemented through the Maharashtra Housing and Area Development Authority (MHADA).

MHADA has been mandated to seek prior approval from the government for any works costing more than Rs 50 crore to curb the arbitrary management and extravagance of MHADA officials. Not only this but if there is an increase of more than 10 per cent in the original cost of the project. MHADA has been ordered to take revised administrative approval from the government.

In September, Fadnavis took a bold decision to decentralize these powers to speed up the implementation of various development works being implemented through the MHADA authority. Accordingly, many powers of the minister were given to the MHADA authority and the regional authorities so that the government does not have to come to the government for every work and the project is not stalled. However, it has been found that this right is not being used properly, especially while implementing the tender process, the provisions of the rules are not being followed. Therefore, while curtailing the powers given to MHADA, it has now been made mandatory to take prior approval from the government for projects costing more than 50 crores. Similarly, rules should be strictly followed while approving all projects and development works implemented through MHADA authority and various regional boards under it. While publishing any tender, and issuing orders for administrative approval and technical approval, it has been made mandatory for the concerned officer to mention the cost of the project, if the project is stopped, if the price increases, the liability for defects etc. It has been made mandatory for MHADA to mention its utility while undertaking any development works or projects and also to seek revised administrative approval for such projects if the cost of any project increases by more than 10% over the estimated cost. It has also been ordered to follow the guidelines of the Central Vigilance Commission while conducting the tender process.

What is binding?

For projects costing more than 50 crores, it is now mandatory to take prior approval from the government.
All the projects implemented through the regional board, while approving the development works must strictly follow the rules.
While releasing the tender, the concerned officer must mention the cost of the project, if the project is stopped, if the price increases, the fault liability etc.
At the time of undertaking the project, its utility should be mentioned and if the cost of any project increases by more than 10% over the estimated cost, revised administrative approval of the projects is mandatory.