October 25, 2025: Two years after the Maharashtra government amended the MHADA Act to accelerate the redevelopment of old and unsafe cessed and non-cessed buildings in Mumbai’s island city, the initiative is beginning to show tangible results.
In December 2022, Section 91(a) was added to the Act to streamline the redevelopment process. Of the 91 stalled projects involving dilapidated buildings, 43 have resumed work in the past year, while five more are expected to begin shortly. Additionally, eight projects have been officially acquired by the Maharashtra Housing and Area Development Authority (MHADA) for redevelopment. Contractors have been appointed following approval from a high-power committee led by the state housing secretary.
Mumbai’s island city houses more than 13,000 cessed and non-cessed buildings—many over five decades old and in deteriorating condition. To encourage private redevelopment, Section 79(a) was also introduced, allowing landlords and tenants to jointly redevelop such properties. MHADA can step in to acquire and redevelop only if these efforts fail.
However, in June, the Bombay High Court criticised MHADA for alleged irregularities in issuing acquisition notices, terming the move “arbitrary” and in violation of the constitutional rights of property owners and tenants due to the absence of proper procedure.
An official from the housing department acknowledged that the legal pressure has pushed stakeholders into action. “Work has restarted out of fear that the properties will be acquired by MHADA,” the official said.
To make redevelopment financially viable, the amended law also offers compensation to landlords—either 25% of the Ready Reckoner rate or 15% of the built-up area from the saleable component—as reimbursement for land costs.
The state government believes these amendments will revive long-stalled projects and replace dangerous structures with safer housing options for thousands of residents across South Mumbai.
Source: Hindustan Times
