November 25, 2025: After nearly seventeen years of delays, the long-awaited redevelopment of Aram Nagar in Andheri West has finally gained momentum. The Maharashtra Housing and Area Development Authority (MHADA) has proposed granting additional development rights for the project, a move expected to generate a premium of around ₹497 crore. Spread across nearly 40 acres in a prime pocket of western Mumbai, Aram Nagar has been awaiting redevelopment since 2008. However, progress stalled after the earlier developer failed to deliver, resulting in the agreement being terminated in 2018.
Instead of allotting land in exchange for free housing units, MHADA is now seeking the state government’s approval to collect the premium amount for permitting extra built-up area. MHADA Vice President and CEO Sanjeev Jaiswal has endorsed the proposal, which aims to provide approximately 2,000 square feet of rehabilitation homes to 360 existing residents—an unusually spacious offering in Mumbai’s redevelopment landscape.
Under the revised plan, the project is expected to generate nearly 65,981 square meters of additional buildable space, known as “chatai kshetrafal.” This space will be monetised to secure the ₹497 crore premium, according to reports. Since the redevelopment will be executed in phases, MHADA will receive funds in multiple instalments throughout the construction period.
Residents have already appointed new developers—a joint venture between ABVO Realty, led by Avinash Bhosale, and Oberoi Realty—and resubmitted the proposal to MHADA. However, the project faces hurdles, including the relocation of trust-owned plots and an old-age home located within the redevelopment zone.
The renewed proposal has now been forwarded to the state government for evaluation. If approved, it could finally deliver modern, spacious homes for long-term residents and significantly enhance MHADA’s revenue. After years of uncertainty, there is revived optimism among residents, planners, and local leaders who hope this marks a turning point for Aram Nagar’s long-pending transformation.
