MHADA flats are affordable, well located and widely traded, from old colonies in Malwani and Charkop to newer lottery buildings across the city. They also come with conditions that ordinary flats do not. Buyers who ignore them can lose both the flat and their money. This guide explains the rules for sellers and buyers.
The rules at a glance
| Question | Position |
|---|---|
| Can a MHADA lottery flat be sold? | Yes, but only after 5 years from the date of allotment, and only with MHADA’s written permission |
| Is MHADA’s permission needed? | Yes. The transfer has to be approved by the concerned MHADA board, and MHADA’s records updated |
| Transfer fee | As fixed by the board. MHADA’s regulations also allow the board to recover a share of the increase in the flat’s value (up to 50% of the unearned increase). Confirm the current amount with the board |
| Stamp duty | Payable on the sale agreement at the usual rates. In Mumbai this is generally 6% (5% stamp duty plus 1% metro cess), with a 1% concession for women buyers |
| Society | Issues its NOC, transfers the share certificate and admits the buyer as a member |
Older MHADA colonies and lottery flats can have different conditions, so always check the terms of the original allotment.
The lock-in period
Under MHADA’s Estate Management, Sale, Transfer and Exchange of Tenements Regulations, 1981, a transfer can be permitted only after five years have passed from the date of allotment, and only with the written permission of the MHADA board and, where one has been registered, the housing society. The buyer must belong to the income group the scheme allows: for EWS, LIG and MIG schemes, any of those groups; for HIG schemes, the HIG group. All dues to the board must be paid.
The purpose is to keep affordable housing with genuine buyers rather than investors. A transfer made without permission can be declared invalid, and the occupant treated as an unauthorised occupant and evicted. MHADA has repeatedly warned buyers against such deals.
Why “power of attorney” sales are dangerous
During the lock-in, some sellers offer to “sell” through a power of attorney, a notarised agreement or an unregistered document, with a registered sale “later”. In such deals:
- MHADA does not recognise the buyer, and the allotment can be cancelled;
- the buyer cannot become a society member or get a loan;
- if the seller dies, changes his mind or sells again, the buyer has few practical remedies; and
- a power of attorney ends on the death of the person who gave it.
If you have already paid under such a deal, take advice quickly on how to protect the money.
Selling after the lock-in: the steps
- Clear dues: MHADA service charges or loan instalments, society maintenance, electricity and water bills.
- Society NOC, or an affidavit if no society has been formed.
- Apply to MHADA for permission and transfer, with the allotment and possession letters, sale or agreement papers, and the documents MHADA lists for your board.
- Pay the transfer fee to MHADA.
- Register the sale at the Sub-Registrar’s office and pay stamp duty and registration fee. See sale deed registration in Maharashtra.
- Society transfer: the society transfers the share certificate and records the new member. See society transfer charges; the transfer premium a society can charge is capped.
- MHADA records are updated in the buyer’s name.
Buyer’s checklist
Ask to see, and keep copies of:
- the original allotment letter and possession letter issued by MHADA, to confirm that five years have passed since allotment;
- that you, as the buyer, fall within the income group the scheme allows;
- every earlier transfer approval, if the flat has changed hands before;
- MHADA’s no-dues receipt;
- the society’s share certificate, NOC and no-dues letter;
- the Index II extract for earlier registered transfers;
- the property card or land records, where available;
- the occupation certificate and any redevelopment agreement for the building;
- the seller’s identity documents, and those of all co-owners and legal heirs.
Confirm the dates yourself: when was possession given, and has the lock-in really ended?
Renting out a MHADA flat
Lottery allotments usually restrict letting the flat out, especially during the lock-in. Letting it out without permission can lead to action against the allottee. Check the terms of your allotment letter, and if renting is allowed, use a registered leave and licence agreement.
Gifts and inheritance
- Transfers to legal heirs after the allottee’s death follow a separate procedure. See MHADA flat transfer after death.
- A gift to a family member may need MHADA’s permission, especially during the lock-in. In Maharashtra, a gift of a residential flat to a spouse, child, grandchild or the spouse of a deceased son attracts only nominal stamp duty. See gift deeds in Maharashtra.
Frequently asked questions
Does the five years start from allotment or possession?
MHADA’s transfer regulations count the five years from the date of allotment. Some schemes carry additional conditions, so read the allotment letter as well.
Can a buyer take a home loan for a MHADA flat?
Yes, once MHADA’s permission and the society transfer are in order. Banks check MHADA’s approval.
I bought a MHADA flat on power of attorney years ago. What now?
Your position depends on the facts: when the sale happened, whether the lock-in was over, and whether the seller or heirs will cooperate. Take advice before paying anything more.
See also: property matters.
Consultations are by appointment. To fix a time, telephone +91 99301 50560 or send a message on WhatsApp.
This guide describes the general position as understood in October 2026. MHADA’s conditions differ between schemes and boards, and its fees change; confirm the current position with the concerned MHADA board before any transaction. It is not legal advice.