Maharashtra - Government Raises Income Slabs for the MHADA Lottery System

Policy Update Jun 20, 2022

The government of Maharashtra, under the MHADA (or the Maharashtra Housing and Area Development Authority) offers affordable housing under a lottery system for residents of the state. The eligibility criteria for participation in the scheme is briefed below:

  1. Applicant must be at least 18 years of age. Applications for children are not permitted.
  2. Applicant must have a domicile certificate proving residency to Maharashtra.
  3. Applicant must hold a PAN.

The government in May [1] announced its decision to revise income slabs - a metric used to determine what kind of housing the participant in the lottery would be eligible for. This revision is the first done since 2016.

A set number of houses are offered under the scheme for each income category. Individuals cannot participate in the lottery for houses not prescribed to their respective brackets, except for individuals in the Economically Weak Section (EWS), who can participate in the lottery process for houses in any of the sections. Income categories with their old and revised slab rates are listed below:

Income Category

Old Slab Rate - Annual Income (Upper limit)

New Slab Rate - Annual Income (Mumbai, Pune, and Nagpur)

New Slab Rate - Annual Income (Rest of Maharashtra)

Economically Weaker Section (EWS)

3 lakhs

6 lakhs

4.5 lakhs

Lower Income Group (LIG)

6 lakhs

9 lakhs

7.5 lakhs

Middle Income Group (MIG)

9 lakhs

12 lakhs

12 lakhs

High Income Group (HIG)

Above 9 lakhs

Above 12 lakhs

Above 12 lakhs

The process for participation involves filling up a form on the MHADA website [2] (link to which can be found here) with personal details and accompanying documents such as Aadhar, PAN,  photos, and bank details. Upon verification, the user is eligible to register for participation in the lottery.

These updated rates shall go live with the upcoming lottery of 5000 homes in the Mumbai Metropolitan Region.

The prices of flats under each category are also pre-determined, and are listed in the table [3] below:

Income Category

Prices

Economically Weaker Section (EWS)

< 20 lakhs

Lower Income Group (LIG)

20 - 30 lakhs

Middle Income Group (MIG)

35 - 60 lakhs

High Income Group (HIG)

60 lakhs - 5.8 crores

The revision of income slabs is aimed at inviting a broader applicant pool, and to provide accessibility of the scheme, in addition to keeping up with increasing prices in terms of construction.

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[1]https://www.moneycontrol.com/news/business/real-estate/maharashtra-government-revises-income-slabs-for-buyers-of-affordable-homes-8691291.html

[2]https://lottery.mhada.gov.in/OnlineApplication/Pune/ApplicantRegistration.do?method=downloadHelpFile&helpFile=HELP_ENGLISH

[3]https://www.bajajfinserv.in/insights/know-about-mhada-lottery-scheme-in-maharashtra

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