Mhada Agrees to Take Up Cluster Redevelopment in South Mumbai
Real Estate

Mhada Agrees to Take Up Cluster Redevelopment in South Mumbai

The long-stalled redevelopment of 388 old and dilapidated Mhada buildings in South Mumbai may finally progress, with the state housing authority agreeing to undertake the projects if housing societies approach it in groups. Efforts by these societies to attract private developers had repeatedly failed, prompting the Maharashtra Housing and Area Development Authority (Mhada) to intervene.

The primary reason for delay has been the small plot size of these buildings, making redevelopment commercially unviable for private builders. A lack of consensus among residents of various societies further complicated the process.

Around 27,373 families currently live in these deteriorating structures, located across neighbourhoods such as Colaba, Girgaon, Mumbadevi, Byculla, Sewri, Prabhadevi and Mahim. Each building typically houses 80–100 flats, each measuring 100–200 sq ft.

These buildings had originally been redeveloped by Mhada three to four decades ago, replacing nearly 900 old structures. They now require fresh redevelopment, but many stand on plots of 400–600 sq metres, considered too small to attract private investment. Attempts by some societies to combine plots also stalled due to disagreements.

The Mhada Sangharsh Kruti Samiti, representing the affected buildings, recently received written confirmation from the office of Praveen Darekar, head of the state’s Self-Redevelopment Authority, that Mhada will take up redevelopment if societies pass a collective resolution. “If a group of buildings comes together and resolves that Mhada should undertake a redevelopment project, Mhada will undertake that redevelopment project,” the letter states.

Eknath Rajapure, working president of the samiti, welcomed the decision, estimating that nearly a third of the buildings could benefit. He noted that previous attempts to appoint private developers had failed, and since the land belongs to Mhada, the agency’s willingness to take up cluster redevelopment offers crucial relief. He also urged the government to implement the proposed Mini-Cluster Redevelopment Policy in Mumbai, which would halve the minimum plot-size requirement from the current 4,000 sq ft.

However, another segment of Mhada buildings remains stuck. More than four years after amendments to the Maharashtra Housing and Area Development Act, 1976 empowered Mhada to acquire stalled cessed buildings, not a single project has been fully acquired or progressed, according to information revealed through a Right to Information request.

Since the introduction of Section 91(A) in July 2021, Mhada’s Mumbai Building Repairs & Reconstruction Board (MBRRB) issued takeover notices for around 90 stalled projects. It later moved to take over only 14, and eventually just seven projects received state approval.

“There is near-total paralysis in the acquisition system that was intended to rescue tenants trapped in legal and financial limbo,” said Jeetendra Ghadge, founder of the Young Whistleblowers Foundation. He criticised the slow pace, saying Mhada must fast-track acquisitions rather than extend time to developers.

“For thousands of tenants who have already lost their homes, hope is rapidly diminishing,” he added.

The long-stalled redevelopment of 388 old and dilapidated Mhada buildings in South Mumbai may finally progress, with the state housing authority agreeing to undertake the projects if housing societies approach it in groups. Efforts by these societies to attract private developers had repeatedly failed, prompting the Maharashtra Housing and Area Development Authority (Mhada) to intervene. The primary reason for delay has been the small plot size of these buildings, making redevelopment commercially unviable for private builders. A lack of consensus among residents of various societies further complicated the process. Around 27,373 families currently live in these deteriorating structures, located across neighbourhoods such as Colaba, Girgaon, Mumbadevi, Byculla, Sewri, Prabhadevi and Mahim. Each building typically houses 80–100 flats, each measuring 100–200 sq ft. These buildings had originally been redeveloped by Mhada three to four decades ago, replacing nearly 900 old structures. They now require fresh redevelopment, but many stand on plots of 400–600 sq metres, considered too small to attract private investment. Attempts by some societies to combine plots also stalled due to disagreements. The Mhada Sangharsh Kruti Samiti, representing the affected buildings, recently received written confirmation from the office of Praveen Darekar, head of the state’s Self-Redevelopment Authority, that Mhada will take up redevelopment if societies pass a collective resolution. “If a group of buildings comes together and resolves that Mhada should undertake a redevelopment project, Mhada will undertake that redevelopment project,” the letter states. Eknath Rajapure, working president of the samiti, welcomed the decision, estimating that nearly a third of the buildings could benefit. He noted that previous attempts to appoint private developers had failed, and since the land belongs to Mhada, the agency’s willingness to take up cluster redevelopment offers crucial relief. He also urged the government to implement the proposed Mini-Cluster Redevelopment Policy in Mumbai, which would halve the minimum plot-size requirement from the current 4,000 sq ft. However, another segment of Mhada buildings remains stuck. More than four years after amendments to the Maharashtra Housing and Area Development Act, 1976 empowered Mhada to acquire stalled cessed buildings, not a single project has been fully acquired or progressed, according to information revealed through a Right to Information request. Since the introduction of Section 91(A) in July 2021, Mhada’s Mumbai Building Repairs & Reconstruction Board (MBRRB) issued takeover notices for around 90 stalled projects. It later moved to take over only 14, and eventually just seven projects received state approval. “There is near-total paralysis in the acquisition system that was intended to rescue tenants trapped in legal and financial limbo,” said Jeetendra Ghadge, founder of the Young Whistleblowers Foundation. He criticised the slow pace, saying Mhada must fast-track acquisitions rather than extend time to developers. “For thousands of tenants who have already lost their homes, hope is rapidly diminishing,” he added.

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