September 10, 2025: After years of uncertainty, the long-delayed redevelopment of Abhyudaya Nagar in Kalachowki has moved forward with three private developers, including Mahindra Group and Oberoi Realty, submitting bids. The Maharashtra Housing and Area Development Authority’s (MHADA) Mumbai board has begun evaluating both financial and technical criteria of the applicants.
Spread across 33 acres, Abhyudaya Nagar comprises 48 buildings and houses nearly 3,450 families living in 208 sq ft units. The project was first proposed in 2000 but faced repeated delays. In 2012, the state government explored a cluster redevelopment model, but that too failed to progress. MHADA later invited tenders under its Construction and Development (C&D) model in 2024, but the tender was extended seven times without attracting bidders and eventually scrapped.
The primary hurdle was the size of replacement apartments. Initially, residents were offered 635 sq ft homes, which developers found unfeasible to construct. The deadlock was broken when former Chief Minister Devendra Fadnavis approved a revision, reducing the unit size to 620 sq ft. This adjustment has now encouraged developers to re-engage with the project.
Under the revised plan, MHADA will provide free housing to existing residents while retaining additional units for sale in the open market. The authority intends to recover project costs through a lottery-based system for these saleable flats.
For the thousands of families who have lived in cramped conditions for decades, this development brings renewed hope. The bids mark a significant step toward transforming Abhyudaya Nagar into modern housing, balancing the interests of residents, developers, and the state. With evaluations underway, the project is finally poised to take off after nearly 25 years of waiting.
Source: The Free Press Journal
