July 1, 2025: After over a decade of legal hurdles, uncertainty, and broken promises, the long-pending redevelopment of Guru Tegh Bahadur (GTB) Nagar in Sion is finally set to commence. Once a settlement for refugees of the Partition, the area is now poised for a long-overdue transformation, with Rustomjee Group’s Keystone Realtors awarded the redevelopment contract for the 11.20-acre site.
The Maharashtra Housing and Area Development Authority (MHADA), which issued the tender under its cluster redevelopment policy, has this week granted a Letter of Acceptance to Keystone Realtors. The project encompasses the redevelopment of 25 buildings and over 1,200 tenements—originally constructed between 1954 and 1987 to house displaced Punjabi and Sindhi families under the Displaced Persons (Compensation and Rehabilitation) Act.
A senior MHADA official confirmed, “Today, a Letter of Acceptance has been issued to Keystone Realtors, involving 1,200 tenements.” This will be the first cluster redevelopment project undertaken by MHADA’s newly formed construction and development agency, under Regulation 33(9).
Many of the buildings had deteriorated significantly, with several officially classified as dilapidated by the Municipal Corporation of Greater Mumbai. Between 2019 and 2022, a number of structures were demolished on safety grounds.
Under the new plan, each resident family will receive a 635 sq ft flat in the redeveloped project. During construction, households will be provided with a monthly rental allowance of Rs 20,000, and post-possession, MHADA will offer five years of maintenance support.
The project had been stalled since 2013 due to lack of consensus, legal disputes, and a Bombay High Court petition questioning MHADA’s jurisdiction. That stay was eventually lifted. In February 2024, the state cabinet cleared the path by recognising MHADA as the Special Planning Authority, enabling the appointment of a new developer and finally allowing the long-awaited project to proceed.
Source: Hindustan Times
