The Maharashtra Housing and Area Development Authority (MHADA) has issued a Letter of Acceptance to a developer consortium for the cluster redevelopment of Abhyudaya Nagar colony in Kalachowki. The LoA was handed over by MHADA Vice President and Chief Executive Officer Sanjeev Jaiswal. The appointment follows a tender process overseen by the MHADA Mumbai Board and the State Government's High?Powered Committee.

Under the approved cluster redevelopment plan residents occupying 210 sq ft carpet area tenements will receive new flats with a carpet area of 641 sq ft each. The colony spans 33 acres and comprises 48 buildings with 3,410 tenements in total, including 3,335 residential units and 75 non?residential premises. The project will be implemented under the Construction and Development model authorised by Development Control Regulation 33(5).

The Maharashtra Cabinet approved the redevelopment proposal on 27 February 2024 and the Housing Department issued a government resolution on 6 March 2026 to proceed with the project. Initial tender conditions were revised after consultations led by the then Deputy Chief Minister and current Chief Minister Devendra Fadnavis, following a joint meeting at Sahyadri Guest House on 11 April 2025 with local representatives and MHADA officials. Revisions were intended to attract bidders after an earlier tender failed to secure responses despite multiple extensions.

The revised conditions include one parking space for each tenement holder, a corpus fund of Rs 0.5 million (mn) for each resident and monthly rent compensation of Rs 25,000 per tenement holder from the developer until completion of the redevelopment. The consortium selected through the revised tender process will be responsible for construction, phasing and rehabilitation of displaced residents as per the approved terms. MHADA will monitor compliance with the tender conditions and project milestones through the Mumbai Board.

The redevelopment is aimed at replacing ageing structures and improving living conditions while preserving tenure rights and providing compensation and amenities. Resident allocations, parking provisions and financial assistance have been incorporated into the contractual obligations of the developer consortium. Further administrative steps will follow as the consortium begins mobilisation and detailed planning.