December 13, 2025: The Maharashtra government on Thursday gave a significant push to stalled redevelopment initiatives in Mumbai, addressing issues faced by residents of old buildings, mill lands, and Pagdi or cessed structures. Deputy Chief Minister Eknath Shinde, during the winter session in Nagpur, announced a revised Occupancy Certificate (OC) amnesty scheme for around 20,000 buildings that had remained without OCs for years.
“This scheme will benefit more than 10 lakh residents who have faced legal and financial difficulties due to the absence of an OC,” the press release stated. The initiative will relieve over 2.5 lakh families from double property tax, water, and sewerage charges, ease access to home loans, and improve property resale value. Proposals submitted within six months will incur no penalty, while those submitted between six months and a year will have a 50% penalty. Individual flat owners will also have the option to obtain OCs independently.
Shinde also announced expedited redevelopment of old buildings on Mumbai’s mill lands. Existing rules do not provide additional incentive Floor Space Index (FSI) for developers, making projects commercially unviable. “Many residential structures and chawls on these lands are old and unsafe, and redevelopment is urgently needed,” he said. Amendments under section 37(1)(ka) of the MRTP Act will encourage developers and give long-pending projects a boost.
On Pagdi buildings, Shinde termed the new framework a “historic decision” aimed at gradually eliminating such structures. Mumbai has over 19,000 Pagdi buildings, many predating 1960. Proposed rules ensure tenants receive FSI equal to their current area, landlords gain FSI for land ownership, and economically weaker occupants get incentives for full reconstruction costs. Any unused FSI will be provided as Transferable Development Rights (TDR). Additional fast-track courts will address nearly 28,000 pending disputes within three years.
Shinde said, “This initiative will finally pave the way for lakhs of Mumbai residents living in Pagdi buildings to get ownership-based homes. Neither tenants nor landlords will face injustice. The government is committed to resolving any further hurdles.”
This comprehensive strategy is expected to accelerate redevelopment, enhance safety, and provide legal and financial relief for Mumbai’s long-neglected housing stock.
Source: News18
