October 17, 2025: In a landmark move to safeguard residents affected by redevelopment, the Maharashtra Housing Department has introduced a new policy mandating developers to deposit three years’ rent upfront before commencing any redevelopment project. The announcement was made by Deputy Chief Minister Eknath Shinde during a lottery event for over 5,000 MHADA flats in Thane’s Konkan region.
The policy addresses a long-standing issue in Mumbai and Thane, where redevelopment of aging housing societies often leaves homeowners stranded due to stalled projects or financial disputes. Under the new rule, developers must secure rent for three years in advance, ensuring displaced residents have a financial cushion during construction delays. Additionally, authorities will evaluate a developer’s financial capacity before granting project approvals, introducing greater accountability to the redevelopment process.
“This is about protecting people,” Shinde stated, emphasizing the government’s intent to prevent displacement without compensation.
The state also plans to collaborate with financially sound government agencies to revive stalled projects and accelerate housing development. These public-private initiatives are expected to mobilize ₹50 lakh crore over five years to construct 35 lakh affordable homes across Maharashtra, transforming the state’s urban housing landscape.
Beyond redevelopment, the government is developing a first-of-its-kind housing plan for senior citizens, with accessible, community-oriented complexes. Affordable housing for working women, mill workers, and migrant labourers is also a priority, alongside efforts to expand fair rental options to counter high market rates.
Early public feedback shows overwhelming support for the new rent rule. By enforcing financial safeguards and strengthening project accountability, Maharashtra is setting a benchmark for responsible, people-centric urban renewal—ensuring redevelopment delivers on its promise of secure, modern homes for all.
Source: Realty Plus
