MHADA Introduces 20-Day Payment Deadline for Contractors, Bills Must Be Cleared Within 5 Days of Approval

Mumbai, Maharashtra: Contractors working on housing and infrastructure projects under the Maharashtra Housing and Area Development Authority (MHADA) will soon benefit from a faster and more transparent bill payment process. In a move to reduce payment delays and keep construction projects on schedule, MHADA has introduced new guidelines requiring officials to review contractors' bills within 15 days and complete payments within the following five days.

Under the new instructions, the entire process, from bill submission to payment, must be completed within a maximum of 20 days. The decision is expected to provide financial relief to contractors and improve the pace of ongoing development projects.

MHADA Makes 15-Day Deadline Mandatory for Bill Verification

Construction contracts under Mumbai MHADA and its various divisions are generally handled at the Executive Engineer level. Contractors submit bills according to the progress of their assigned work. However, delays in bill verification and payment have frequently created difficulties for contractors.

To address these concerns, MHADA has directed the concerned Executive Engineers to complete the verification of submitted bills within 15 days. Once the verification is complete, the bills must be forwarded to the Chief Accounting Officer or the Accounting Officer of the respective division for financial review and further processing.

Contractors Must Receive Payments Within 5 Days

According to the revised guidelines, the Chief Accounting Officer or Accounting Officer must complete the financial scrutiny and release the payment within five days of receiving the verified bill.

The new system also aims to reduce unnecessary file movement between senior officials and departments. The concerned accounting officers have been authorized to make payment-related decisions within their assigned responsibilities, helping avoid delays caused by additional approval procedures.

With these deadlines, MHADA aims to ensure that contractors receive their payments within 20 days of submitting their bills.

MHADA Warns Officials Against Unnecessary Payment Delays

The authority has made it clear that officials who keep contractors' bills pending without valid reasons may face direct administrative action.

Sending files to officials who do not have the necessary authority to approve payments will also be treated seriously. The new instructions are intended to establish greater accountability among officers and ensure that contractors do not face unnecessary financial difficulties.

Sanjeev Jaiswal's MHADA Administration Focuses on Faster Project Execution

Under the leadership of MHADA Vice President and Chief Executive Officer Shri Sanjeev Jaiswal (IAS), the authority is taking steps to improve administrative efficiency and strengthen project management.

The new payment guidelines are expected to support contractors by ensuring more predictable cash flow and reducing the financial pressure caused by delayed payments. Timely payments can also help contractors manage labor costs, purchase construction materials, and maintain work schedules.

Faster Payments Could Accelerate MHADA Housing and Infrastructure Projects

Delayed payments can affect construction timelines, increase financial pressure on contractors, and slow down development work. By introducing fixed deadlines for bill verification and payment, MHADA aims to address these challenges through a more efficient administrative process.

The revised system is expected to benefit contractors working on residential housing, redevelopment, and infrastructure projects across MHADA's various divisions. It could also help the authority complete projects within their planned timelines while improving the overall delivery of housing and public infrastructure in Maharashtra.