November 21, 2025: In a significant policy intervention aimed at reviving Mumbai’s long-delayed cluster redevelopment projects, the Maharashtra government has approved a complete waiver of registration fees for homes sized between 400 and 600 sq ft allotted to eligible tenants and residents within the BMC limits. The decision, formally cleared by the Revenue Department on November 18, 2025, under Minister Chandrashekhar Bawankule, is expected to directly ease the financial burden on lakhs of families and accelerate redevelopment across the city.
Bawankule said the newly approved measure would bring substantial relief to residents, noting that even with the increase in minimum home sizes—up by nearly 200 sq ft—“the registration cost remains entirely waived,” offering considerable support to middle-class and economically weaker households. The policy aims to address a long-standing concern: tenants in redeveloped buildings were previously required to pay stamp duty on additional carpet area, often calculated at high ready reckoner rates or construction costs, making redevelopment financially unviable for many.
Under the revised system, the entire carpet area—covering the original entitlement, additional area mandated under redevelopment norms, and fungible area—will be calculated at a nominal rate of 112 times the rent or any lower applicable benchmark. This shift is designed to drastically reduce payable amounts and simplify the process for residents and developers.
The decision aligns closely with Development Control Regulations (DCR) 2034. Rule 33(9)(5)(i) grants each resident a minimum carpet area of 35 sq m, along with 10–35% additional space and 35% fungible FSI. With the new waiver, all additional space will now be treated as replacement area, qualifying for concessional valuation and improving the financial feasibility of redevelopment.
The financial impact is substantial: in smaller projects on 4,000 sq m plots, savings could amount to Rs 21.14 lakh per project, while large clusters of over 50,000 sq m may see relief of up to Rs 4.36 crore in stamp duty. Officials say the move removes a major bottleneck in Mumbai’s redevelopment ecosystem, helping push forward projects stalled for years and supporting efforts to replace aging, unsafe buildings with modern, safer homes.
