November 18, 2025: The Maharashtra government has granted final approval for the long-pending redevelopment of Sindhi Colony in GTB Nagar, bringing relief to nearly 1,200 families who have waited 12 years for the project to move forward. A government resolution issued on Friday by the housing department confirms that Keystone Realtors of the Rustomjee Group will reconstruct the colony’s 25 ageing buildings. The project is part of MHADA’s cluster redevelopment scheme, under which major proposals for Kamathipura and Abhyudaya Nagar are also awaiting clearance.
For residents of Sindhi Colony—originally built in the 1950s and 60s to house Punjabi and Sindhi refugees under the Displaced Persons (Compensation and Rehabilitation) Act, 1954—the journey has involved repeated delays, structural deterioration, and a series of court challenges. “Each family will receive a 635-square-foot home,” officials confirmed, adding that MHADA will pay residents a maintenance fee for five years after completion, along with a monthly rent of ₹20,000 during the construction period.
Under the tender conditions, MHADA will receive 25,700 square metres of saleable housing stock, which will be offered through a lottery system. Spread across 11.20 acres in Central Mumbai, many of the colony’s buildings were declared unsafe by the BMC, prompting demolition of several structures between 2019 and 2022.
The redevelopment plan was first approved by the state cabinet on February 14, 2024, which also designated MHADA as the Special Planning Authority under Regulation 33(9). This appointment, however, was challenged by residents in the Bombay High Court, who argued that MHADA lacked jurisdiction and that the proposed redevelopment invalidated their agreements with a different developer. Although the high court initially stayed the government’s plan, the stay was later lifted, paving the way for today’s approval.
Meanwhile, MHADA has also selected Oberoi Realty for Abhyudaya Nagar and AATK Constructions for Kamathipura, with both proposals sent to the state government for final sanction.
