Owners may soon be allowed to rent out flats in 1st 5 years

Mumbai: The state housing agency is set to do away with its rule that restricts a Mhada flat allotee from renting out the flat for first five years.      The proposal has been approved in principle by the state. Mhada will be taking a formal decision at a meeting to be held soon. Mhada chief officer (Mumbai board) Niranjan Sudhanshu said, "If an allottee is transferred to another city, he/ she may want to rent out the flat. With restrictions lifted, there will be no question of illegal renting ."      Officials said the move will help the state government increase revenue through stamp duty and registration fee.      But sources say the proposal was framed to overcome criticism faced by legislators in the 2011 CAG report which criticised the state for its largesse given to Rajyog, a housing society of legislators in Versova, who had rented out 70 of the 225 flats allotted and were themselves staying at MLA hostels.