After nearly 15 years of stagnation, the Maharashtra Housing and Area Development Authority (MHADA) has taken over the redevelopment of the Parvati Building in South Mumbai. The project had been mired in delays caused by developer defaults and administrative inertia, leaving tenants in limbo. Although redevelopment approval was granted back in 2013, attempts to restart the project with two separate developers repeatedly failed.
Earlier this week, MHADA announced it would execute the redevelopment itself, in compliance with a Supreme Court directive. The authority cited the prolonged hardship faced by tenants and the lack of progress as reasons for its intervention. MHADA will proceed under Section 91-A of the Maharashtra Housing and Area Development (Amendment) Act, 2020. This provision grants MHADA the power to step in when private developers do not complete projects within a reasonable timeframe.
The Supreme Court has also ordered MHADA to provide immediate relief to affected tenants by arranging transit accommodations. Tenants who choose not to move to the assigned housing due to location issues will receive rent compensation at current market rates from the eighth respondent.
Advocate Nilesh Gala, representing the tenants, noted that the redevelopment had been stalled since 2012 despite efforts with two developers. He welcomed MHADA’s involvement, saying it aligned with the spirit of the 2020 amendment designed to address such stalled projects.
The Supreme Court will review progress in mid-August to ensure that MHADA’s measures are on track.
MHADA has previously stepped in to revive stalled redevelopment projects in Mumbai’s older cessed buildings, particularly in Girgaon, Parel, and Dadar. The use of Section 91-A to directly manage redevelopment signals a strengthened commitment to protecting housing rights and may set a precedent for greater accountability and reform in the city’s real estate sector.
Source: Prop News Time
