After nearly seventeen years of waiting, the long-delayed redevelopment of the Aram Nagar society in Andheri West is finally gaining momentum. The Maharashtra Housing and Area Development Authority (MHADA) has proposed granting additional development rights for the project, which is expected to generate a premium of around Rs 4.97 billion.

Aram Nagar spans nearly 40 acres in a key part of western Mumbai. Instead of receiving land in return for free housing units, MHADA is now seeking the state government’s approval to collect the premium in exchange for additional built-up space. MHADA Vice President and CEO Sanjeev Jaiswal has endorsed the proposal, which aims to provide rehabilitation homes of about 2,000 square feet each for the 360 existing residents.

Under the revised plan, the redevelopment is expected to create nearly 65,981 square metres of extra buildable area, known as “chatai kshetrafal”. This area will be monetised to raise the Rs 4.97 billion premium, according to reports. As the project will be executed in phases, MHADA will receive the funds in instalments over the duration of the development.

The redevelopment was first approved in 2008, but progress stalled due to the earlier developer’s failure to act, leading to the termination of the agreement in 2018. Residents later selected new developers—a joint venture between ABVO Realty, led by Avinash Bhosale, and Oberoi Realty—and submitted a fresh proposal to MHADA.

Challenges remain, as parts of the land include trust-owned plots and an old-age home that must be relocated before construction can begin. The updated proposal has now been forwarded to the state government for review.

If approved, the move could pave the way for modern, spacious homes for long-standing residents while significantly boosting MHADA’s revenue. Optimism has grown in the community, with residents, experts and local leaders hopeful that this will finally mark a turning point for Aram Nagar.