August 23, 2025: The Maharashtra Housing Policy 2025, approved last month, proposes the introduction of a separate RERA-like law to regulate redevelopment projects in the state. Currently, such projects are not covered under the Real Estate Regulatory Authority Act, 2016, leaving complaints from homeowners unresolved by MahaRERA.
The state cabinet approved the housing policy in May 2025, and the Maharashtra Housing Department issued a Government Resolution (GR) on July 23, marking a key step towards its implementation.
Redevelopment in Maharashtra predominantly involves older buildings, typically two to seven storeys high. These projects see old structures demolished and replaced with modern, larger buildings, adhering to prescribed norms. Residents of the original buildings usually receive larger apartments in the new construction at no cost, while builders sell additional units for profit. The government also earns revenue through the sale of floor space index (FSI) to developers.
The housing policy highlights that stalled redevelopment projects have previously left homeowners in distress, as developers sometimes halt rent payments during construction delays. “Redevelopment projects either do not commence or get delayed, causing financial, social, and mental distress for flat owners,” the policy states, emphasising the need for stringent regulation.
To address these issues, the 2025 policy proposes measures to revive stalled real estate and slum redevelopment projects, including a cluster redevelopment model for greater efficiency. It also promotes self-redevelopment initiatives, allocating Rs 2,000 crore and establishing a dedicated cell to assist cooperative housing societies.
MahaRERA, the state’s real estate regulator since May 2017, has so far dismissed complaints related to redevelopment projects, citing a lack of jurisdiction. For instance, in December 2022, it directed homeowners of a Mumbai redevelopment project to approach other authorities for relief, as redevelopment falls outside the RERA Act’s purview. Since its inception, MahaRERA has handled around 30,000 complaints from homebuyers.
The Maharashtra Housing Policy 2025 marks a significant step towards providing a clear regulatory framework for redevelopment, aiming to protect homeowners and streamline real estate development across the state.
Source: Hindustan Times
