December 13, 2025: The long-pending redevelopment of 388 old and dilapidated Maharashtra Housing and Area Development Authority (Mhada) buildings in South Mumbai may finally move forward, with the state housing body agreeing to undertake the work through a cluster redevelopment model. The breakthrough comes after repeated failures by individual housing societies to attract private developers due to commercial and logistical constraints.
These ageing structures house around 27,373 families across areas such as Colaba, Girgaon, Mumbadevi, Byculla, Sewri, Prabhadevi and Mahim. Most buildings comprise 80 to 100 small flats, typically measuring between 100 and 200 sq ft. Originally redeveloped by Mhada three to four decades ago after replacing nearly 900 unsafe buildings, these structures now urgently require reconstruction once again.
A key hurdle has been the small plot sizes—generally between 400 and 600 sq metres—making projects financially unviable for private builders. Efforts by societies to pool plots also stalled due to lack of consensus among residents. With redevelopment at a standstill, Mhada has now agreed to intervene if societies come together formally.
The Mhada Sangharsh Kruti Samiti, which represents residents of these buildings, received written confirmation from the office of Praveen Darekar, head of the state’s Self-Redevelopment Authority. “If a group of buildings comes together and resolves that Mhada should undertake a redevelopment project, Mhada will undertake that redevelopment project,” the letter states.
Welcoming the move, Eknath Rajapure, working president of the samiti, said nearly one-third of the buildings could benefit. He added that since the land belongs to Mhada, the agency’s involvement offers long-awaited relief. Rajapure also renewed calls for implementing the proposed Mini-Cluster Redevelopment Policy, which would reduce the minimum plot-size requirement from 4,000 sq ft.
However, concerns remain over stalled cessed buildings. Despite amendments to the MHADA Act empowering acquisitions since 2021, progress has been limited. “There is near-total paralysis in the acquisition system that was intended to rescue tenants trapped in legal and financial limbo,” said Jeetendra Ghadge of the Young Whistleblowers Foundation, warning that delays are eroding hope for displaced tenants.
Source: Construction World
