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Mumbai's MHADA Revamp Gains Steam: 10 Projects in 6 Months After Rule Changes

The Maharashtra government's revised regulations for redeveloping dilapidated MHADA buildings are yielding positive results, with ten project proposals submitted within six months. Minister Shambhuraj Desai informed the Assembly that key incentives include adjusted FSI premiums and increased incentive FSI to attract developers. An annual fund of Rs 75 crore has been allocated for building repairs, with instructions to expedite project approvals. A separate housing project on MHADA land in Malad, developed for the police federation, is slated for completion by 2036.

Key Points: MHADA Building Redevelopment Accelerates with New Rules in Mumbai

  • 10 project proposals received in 6 months
  • FSI premium adjusted to 25% of land value
  • Incentive FSI increased to 75-100%
  • Rs 75 crore annual fund for repairs
  • 1,071 flats planned in Malad project
3 min read

Maha: Developers respond favourably to new redevelopment rules for dilapidated MHADA buildings

Maharashtra's new incentives for MHADA building redevelopment attract 10 project proposals in six months, with one NOC already granted.

"A decision was made in July 2025 to provide extra area on top of the rehabilitation component. - Minister Shambhuraj Desai"

Mumbai, March 16

Maharashtra Minister Shambhuraj Desai, on Monday, told the state Assembly that changes made by the state government to accelerate the redevelopment of dilapidated and dangerous MHADA buildings in Mumbai are receiving a positive response from developers.

Within just six months, 10 project proposals have been received, one of which has already been granted a No Objection Certificate (NOC).

The statement was made in response to a "Calling Attention" motion moved by MLA Manoj Jamsutkar regarding the hurdles faced in the redevelopment of 388 reconstructed MHADA buildings.

Members Rais Shaikh and Manisha Chaudhary also participated in the discussion.

Minister Desai said that previous regulations discouraged developers from taking up these projects.

To ensure that tenants living in buildings more than 30 years old receive safe housing, the state government introduced the several incentives, including additional area, floor space index (FSI) premium adjustments and increased incentive FSI.

"A decision was made in July 2025 to provide extra area on top of the rehabilitation component. Following the decision on September 18, 2025, the provision to acquire Floor Space Index (FSI) was set at 25 per cent of the Ready Reckoner rate of the land value, replacing the previous 20 per cent premium structure. The incentive FSI, which previously ranged from 45 per cent to 75 per cent, has been hiked to 75 per cent to 100 per cent," he added.

As a result of these shifts, the Minister said that 10 project proposals received in the last six months, one NOC granted as of March 10 and six proposals submitted under the cluster redevelopment model.

"MHADA administration has been instructed to prioritise and expedite these projects. If all documentation is complete, officials have been directed to grant immediate approval," Minister Desai added.

He told the House that an annual fund of Rs 75 crore has been allocated for the repair of dilapidated MHADA buildings, with a promise to increase this amount if necessary.

He also added that verification of heirship documents will be conducted based on court certificates to ensure eligible beneficiaries face no hardships.

Meanwhile, Minister Desai in the State Legislative Council said that the land owned by MHADA at Dadasaheb Gaikwad Nagar, Malvani, Malad (West) and Mumbai, is divided into two parts.

One part belongs to the Maharashtra Police Federation, while the remaining portion has been developed by MHADA.

He announced that the Federation has submitted a construction agreement for the housing project being built on the land leased to the Maharashtra Police Federation.

The project is expected to be completed by March 2036.

The question was asked in the State Legislative Council by member Milind Narvekar.

"The Maharashtra Police Co-operative Housing Federation is executing the project under a lease agreement for a housing redevelopment scheme. The project is being developed according to the new Development Control Regulations (DCR), which will make 1,071 flats available. The plot within this layout is reserved as a Recreational Ground. Minister Desai clarified that this playground will remain open to the general public," he said.

- IANS

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Reader Comments

P
Priyanka N
Good to see some action. The FSI increase from 45-75% to 75-100% is a major incentive. But the proof will be in the delivery. We've seen projects get stuck for years after initial proposals. The 2036 deadline for the Malad project shows how long these things take.
A
Aman W
Finally! The old rules were a nightmare for everyone - residents, developers, MHADA. The clause about verifying heirship documents through court certificates is crucial. So many redevelopment projects in Mumbai get delayed due to family disputes over ownership.
S
Sarah B
While the intent is positive, I hope there is strong oversight. Increasing FSI and providing extra area can lead to overly dense construction if not monitored properly. The promise to keep the recreational ground public in Malad is a good step.
V
Vikram M
Ten proposals in six months is a decent start. The real test will be how many actually break ground and get completed. The annual Rs 75 crore repair fund is a drop in the ocean for Mumbai's ageing housing stock, but it's better than nothing.
K
Kavitha C
As someone who has relatives in a 40-year-old MHADA building, this news brings hope. The fear of a building collapse is real. I just hope the process is transparent and the existing residents are the primary beneficiaries, not just the builders.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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