The Maharashtra government has cleared a major legal obstacle in the redevelopment of cessed (turban) buildings in South Mumbai by passing the Maharashtra Housing and Area Development (Amendment) Bill, 2026. The legislation, introduced by Housing Minister Shambhuraj Desai in the Legislative Council, has now been approved by both Houses of the state legislature.
The amendment grants the Maharashtra Housing and Area Development Authority (MHADA) the legal authority to declare buildings as dangerous and initiate the redevelopment process. The move is expected to accelerate the redevelopment of around 13,800 cessed buildings in South Mumbai, benefiting nearly 20 lakh residents living in ageing structures.
Earlier, the state government had introduced Section 79(A) to speed up the redevelopment of cessed buildings. Under this provision, redevelopment proposals could be submitted with the consent of the original owner or at least 51% of the tenants if a building had been declared unsafe.
However, several property owners challenged the provision in court, arguing that MHADA lacked the legal authority to classify buildings as dangerous. The legal dispute stalled redevelopment projects across South Mumbai, delaying housing projects for several years.
To address this issue, the government introduced the amendment, empowering executive engineers of MHADA’s Mumbai Building Repairs and Reconstruction Board to act as authorised officers. The change provides MHADA with the statutory powers required to declare buildings unsafe and proceed with redevelopment under the law.
Replying to the discussion on the Bill, Housing Minister Shambhuraj Desai said the state government would continue to defend its position in court. He stated that the Additional Chief Secretary of the Housing Department would personally monitor the matter and, if required, the government would appoint a team of senior lawyers from Delhi to effectively represent its case before the Supreme Court.
Desai also informed the House that the government has approached the Supreme Court as the stay on the matter continues despite the submission of a report by a committee of two retired judges appointed by the Bombay High Court. He added that redevelopment proposals based on the consent of 51% of tenants will continue to be processed in accordance with court directives.
Source: Prahaar
