MHADA Waives 3-Year Service Charges for Mill Workers

Service Charges Waived From April 2024 to March 2027

Thousands of mill workers who received homes in Kon, Panvel, are set to receive major financial relief after the Maharashtra government approved a three-year waiver of service charges collected by the Mumbai Board of MHADA.

The waiver covers the period from April 1, 2024, to March 31, 2027, providing relief to 2,417 mill workers who were allotted homes under the MMRDA rental housing project.

The government has approved a total waiver of Rs. 11.95 crore in service charges. The amount will be provided to the MHADA Mumbai Board through the Maharashtra Shelter Fund, ensuring that the waiver does not affect the Board's housing operations.

Government Decision Brings Relief to 2,417 Mill Workers

The decision follows concerns raised by mill workers over the high annual service charges being collected for the maintenance and upkeep of their homes and buildings.

The workers had been paying substantial charges despite the homes being part of a housing arrangement created to provide affordable accommodation to eligible mill workers. The issue became a major concern for families living in the 320-square-foot homes in Kon, Panvel.

The Housing Department issued the government decision approving the three-year waiver, giving the affected families much-needed financial relief.

MHADA Service Charges Had Increased Significantly

The Mumbai Board had been collecting service charges from mill workers when possession of the homes was handed over. These charges were intended to cover building maintenance, repairs and other related services.

However, the charges increased considerably in recent years. For the 2024-25 financial year, workers were charged an annual service fee of Rs. 42,135, while the charge increased to Rs. 55,680 for 2025-26.

This worked out to roughly Rs. 3,500 to Rs. 4,640 per month, which led to strong objections from the beneficiaries.

Around 900 winners who paid the sale price of their homes between 2019 and 2024 had earlier received a waiver of two years of service charges. Workers later demanded a broader waiver as the charges continued to create a financial burden.

Three Years of Service Charges Covered Under Waiver

Under the latest government decision, the service charges waived for the three financial years are:

• April 1, 2024 to March 31, 2025: Rs. 3.02 crore
• April 1, 2025 to March 31, 2026: Rs. 4.25 crore
• April 1, 2026 to March 31, 2027: Rs. 4.00 crore
• Total waiver: Rs. 11.95 crore

The approved amount will be transferred to the Mumbai Board from the Maharashtra Shelter Fund.

Sanjeev Jaiswal and MHADA's Focus on Housing Relief

The decision is also significant in the broader efforts of MHADA to address housing-related concerns and support eligible beneficiaries. Sanjeev Jaiswal, Vice President and Chief Executive Officer of MHADA, has been associated with the administration of the authority and its efforts to improve housing services and address beneficiary concerns.

The latest move is expected to ease the financial pressure on mill workers who have been waiting for a practical solution to the service charge issue.

Mill Workers Welcome the Government's Decision

The Panvel Mill Workers Sankul Ekta Samiti has welcomed the government's decision, calling it an important relief for the affected families.

Committee chairman Ganesh Supekar said the decision is a positive outcome of the workers' continued efforts and gives them significant financial relief.

The committee has now requested that the government also consider extending the service charge waiver to 2027-28.

For the 2,417 mill workers living in Kon, Panvel, the three-year waiver is expected to reduce their financial burden and provide greater stability for their families.