State Moves To Take Over Stalled Byculla Redevelopment Projects, Orders Action Against Developers

November 29, 2025: The state government has approved the takeover of three long-stalled redevelopment projects in Byculla after years of construction delays and non-payment of transit rent, which left tenants in prolonged distress. In a government resolution (GR) issued on Friday, the state announced it will acquire Taumbawala Building, Deji Dharsi Building, and Zohra Mansion—together spanning 1,532.63 sq. m. on Fourth Peer Khan Street in Nagpada—and complete their redevelopment through MHADA. The government has also ordered criminal action and blacklisting of the developers responsible.

According to the GR, “The developer had completed construction up to 20 floors but failed to rehabilitate tenants even after 10 years. The developer also stopped paying tenants’ transit rent for the last three years, leading to a legal battle. A group of tenants approached the Bombay High Court, which on 1 October 2025 directed the state to take action under Section 91(A) of the MHADA Act, allowing the government to acquire such properties.”

Following the High Court’s direction, the state has instructed MHADA to take possession of the land and the unfinished structures. The acquisition process will move forward only after MHADA completes financial and legal audits to confirm that the projects are free from third-party claims, pending loans or other encumbrances. Once these checks are completed, MHADA is expected to begin work without delay so that the redevelopment can finally be completed and tenants can be rehabilitated.

The government has further ordered that the existing developers or owners be blacklisted and face criminal proceedings for failing to fulfil statutory obligations and abandoning tenants in temporary accommodation. The intervention marks a significant step toward resolving long-pending redevelopment issues in the area and restoring housing security for affected residents.

Source: Hindustan Times

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