MHADA Sets 20-Day Deadline for Contractor Bill Payments

MHADA Orders Faster Contractor Bill Payments, Sets 20-Day Deadline to Clear Dues

The Maharashtra Housing and Area Development Authority (MHADA) has introduced new guidelines to ensure contractors receive payments on time for development and construction projects. Under the new rules, contractor bills must be processed within a maximum of 20 days after submission, helping reduce unnecessary delays and keep important projects moving forward.

The decision aims to improve administrative efficiency, provide financial relief to contractors, and ensure that development work across Maharashtra progresses without interruptions.

MHADA Sets 15-Day Deadline for Bill Verification by Executive Engineers

Under the existing system, contracts for projects undertaken by MHADA and its various regional boards are signed at the Executive Engineer level. However, the administration observed that bills submitted by contractors according to project progress were not always processed on time.

To address this issue, MHADA has introduced a clear timeline for processing contractor payments. According to the new guidelines, the concerned Executive Engineer must examine the submitted bills and forward them to the office of the Chief Accounting Officer or the respective Board's Accounts Officer within a maximum of 15 days.

This step is expected to make the verification process more organized and prevent files from remaining pending at different administrative levels.

Accounts Officers Must Clear Payments Within Five Days

The new guidelines also establish a five-day deadline for the accounts department. After receiving the bills, the Chief Accounting Officer or the concerned Accounts Officer must verify the financial details and arrange payment to the contractor within five days.

Importantly, the administration has clarified that these bills do not need to be forwarded to Chief Officers for additional approval. The designated Accounts Officers have the authority to make payment decisions within the scope of the agreement.

This change is expected to reduce unnecessary paperwork, simplify the approval process, and speed up payments for completed project work.

MHADA Warns Officers Against Unnecessary Payment Delays

MHADA has also made it clear that delays in contractor payments without valid reasons will be taken seriously. Officers responsible for unnecessary delays may face administrative action.

The authority has further instructed officials not to waste time forwarding files to officers who do not have approval responsibilities under the relevant agreements.

The new circular is intended to establish accountability at every stage of bill processing and ensure that officials follow the prescribed timelines.

New Payment Rules Apply to MHADA Boards Across Maharashtra

The payment guidelines have been circulated to MHADA's major regional boards, including Mumbai, Konkan, Pune, Nagpur, and Chhatrapati Sambhajinagar.

Under the leadership of IAS Sanjeev Jaiswal, Vice President and Chief Executive Officer of MHADA, the authority continues to focus on improving administrative processes and ensuring the timely execution of housing and infrastructure projects.

By introducing fixed payment deadlines and clear responsibilities for officials, MHADA aims to build a more efficient working system for contractors and project departments. Faster bill processing is also expected to support uninterrupted construction activities and help complete public housing and redevelopment projects within their planned timelines.