December 5, 2025: The Maharashtra government has approved the takeover of the long-stalled redevelopment of the KK Modi Wani Chawl in Sewri, handing the responsibility to the Maharashtra Housing and Area Development Authority (MHADA). The move follows the developer’s failure to complete the project even after more than two decades. Acting on state directives, MHADA on Thursday issued an order to initiate criminal proceedings against the developer and blacklist the firm.
Redevelopment of the KK Modi Chawl began in 1992, and by 1998, the building was fully vacated. However, the project made no progress afterward, leaving 205 beneficiary tenants stranded in MHADA-run transit accommodations for the past 25 years. In July 2013, MHADA’s Mumbai Building Repairs and Reconstruction Board (MBRRB) cancelled the NOC granted to the over 80-year-old chawl.
A major policy shift came in December 2022 with the introduction of Section 91(A) in the MHADA Act, empowering the agency to take over stalled redevelopment of cessed buildings in the island city. This provision enables MHADA to intervene when developers abandon projects or face financial hurdles, ensuring that displaced tenants receive timely rehabilitation.
Utilising these powers, the housing department has initiated the acquisition of the KK Modi Chawl property. “The government approves the proposal by MHADA to acquire building numbers 62 and 63 with a plot area measuring 959,293 sq.m and to carry out construction under the powers granted by sections 91(A) and 93(1) of the MHADA Act,” states a government resolution issued by MHADA.
However, the acquisition will proceed only after thorough financial and legal audits confirm the absence of third-party claims, outstanding loans, or legal roadblocks. “The approval is subject to conditions, including the verification of third-party rights, loans taken by the developer, and other details by the board (MBRRB), which must be independently submitted to the government for prior approval,” the GR notes.
Additionally, the developer of the abandoned project will be blacklisted, and authorities have been instructed to initiate necessary actions, including criminal proceedings. “Before starting the acquisition process, MHADA issued a notice to the developer for failing to complete the redevelopment project on November 28, 2023,” a senior housing official said.
Source: Hindustan Times
