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MHADA is government organization which provides home to every section of society. established in the year 1976 and came into existence in the year 1977 with an aim to take Maharashtra towards a better future in housing sector. It aspires to be world class housing authority with largest number of housing units. MHADA also aspires to provide qualitative, affordable and sustainable housing to the last section of the society. 

Objectives of MHADA 

  • It provides affordable houses of good quality and values
  • It provides Housing to the people of different income groups.
  • MHADA to uplift the standard of living of the people.
  • MHADA has committed to provide housing for all by 2022.

MHADA has seven regional Boards and working procedure of MHADA has been divided accordingly. The different Regional Boards of MHADA are: 

  • Mumbai Board
  • Konkan Board
  • Pune Board
  • Aurangabad Board
  • Nashik Board
  • Amravati Board
  • Nagpur Board 

Under Mumbai Board, Two more Boards were added to it. 

  • Bombay Buildings and Repairs and Reconstructions Board
  • Mumbai Slum Improvement Board.

Bombay Buildings and Repairs and Constructions Board 

On the recommendation of Bedekar committee Government of Maharashtra passed the Bombay Buildings Repairs and Reconstructions Act, in the year 1969. The Bombay Building Repairs and Reconstruction Board was formed in the year 1971. Till 1977, this board was directly functioning under government. Subsequently this Act was merged with the Maharashtra Housing and Area Development Act 1976 in December 1977. 

Mumbai Slum Improvement Board 

To improve the environmental living of the slum dwellers of Mumbai City & Suburbs District, the Govt. of Maharashtra has formed Mumbai Slum Improvement Board in November 1992 under the control of the Maharashtra Housing & Area Development Authority. The works of providing basic civic & social amenities to the slum dwellers of the Mumbai City & Suburbs District are being carried out by the Mumbai Slum Improvement Board. These works are carried out from the funds of the District Annual Plan schemes. 

Services provided by MHADA. 

  • Transfer of Tenement (Residential).
  • Transfer of Tenement (Non-Residential).
  • Regularization (Residential).
  • Regularization (Non-Residential).
  • No Dues Certificate.
  • No Objection Certificate for Mortgage.
  • Sale Permission for Commercial Tenement.
  • Sale Permission for Plot.
  • BPP Letter.
  • HPS Letter.
  • No Objection Certificate for Rent.
Parameters Equitable Mortgage Registered Mortgage
The equitable mortgage does not need any registration
Registration is mandatory under the registered mortgage.
It is mandatory to purchase a stamp paper under the equitable mortgage.
To initiate the registered mortgage process, you, as a borrower, need to contact the office of the sub-registrar.
Cost Involved
Under this mortgage, the cost of stamp duty is either 0.1% to 0.3 % and Filling fee 0.5% of your loan value
You need to spend Registration 0.5% and Stamp duty 0.1 to 0.3%of your loan value to obtain a registered mortgage.
Compared to a registered mortgage, an equitable mortgage is less expensive.
Registered mortgages are slightly more expensive.
Lender’s Rights
In the event of default, the financial institution takes over your mortgaged Property and auctions it to recoup its loss.
In the event of default, your mortgaged property is transferred to the financial institution, and they have the right to do whatever they want to do with the property; they can either sell it or use it.
In comparison to a registered mortgage, an equitable mortgage possesses a higher risk.
Since a registered mortgage provides security to both borrowers and lenders, it is considered risk free

 To Conclude 

Now that you are familiar with both of these mortgage alternatives, deciding between them should not be a difficult task. In the long run, a registered mortgage is always preferred over an equitable mortgage because it benefits both the borrower and the lender.

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