Maharashtra's New MHADA Redevelopment Rules Draw Positive Developer Feedback
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Mumbai, March 16 (NationPress) Maharashtra's Minister Shambhuraj Desai informed the state Assembly on Monday that the state government's new initiatives aimed at expediting the redevelopment of unsafe and aging MHADA (Maharashtra Housing and Area Development Authority) buildings in Mumbai are garnering favorable reactions from developers.
In a remarkable development, 10 project proposals have been submitted within a mere six months, with one already receiving a No Objection Certificate (NOC).
This announcement followed a 'Calling Attention' motion brought forth by MLA Manoj Jamsutkar, addressing the challenges related to the redevelopment of 388 MHADA buildings that are slated for reconstruction.
MLA Rais Shaikh and Manisha Chaudhary also contributed to the discussion.
Minister Desai remarked that previous regulations had discouraged developers from engaging in these projects.
To ensure that tenants residing in buildings older than 30 years have access to safe housing, the state government has rolled out several incentives. These include additional land area, adjustments in Floor Space Index (FSI) premiums, and an increase in incentive FSI.
A decision made in July 2025 allowed for extra area beyond the rehabilitation component. Following a decision on September 18, 2025, the FSI acquisition rate was set at 25 percent of the Ready Reckoner rate of the land value, a shift from the previous 20 percent premium structure. Furthermore, the incentive FSI, which previously ranged from 45 percent to 75 percent, has been enhanced to 75 percent to 100 percent.
Due to these changes, Minister Desai noted that 10 project proposals have been submitted in the last six months, with one NOC granted as of March 10 and six proposals filed under the cluster redevelopment model.
MHADA administration has been directed to prioritize and expedite these projects. Officials have been instructed to grant swift approvals if all documentation is in order,” the Minister stated.
He disclosed that an annual budget of Rs 75 crore has been designated for repairing dilapidated MHADA buildings, with a commitment to increase this funding as required.
Additionally, he mentioned that verification of heirship documents will occur based on court certificates to avoid hardships for eligible beneficiaries.
In a related note, Minister Desai stated in the State Legislative Council that the land owned by MHADA at Dadasaheb Gaikwad Nagar, located in Malvani, Malad (West), and Mumbai, is split into two sections.
One section is under the Maharashtra Police Federation, while the other has been developed by MHADA.
He reported that the Federation has submitted a construction agreement for a housing project on the land leased to the Maharashtra Police Federation, with an expected completion by March 2036.
The inquiry in the State Legislative Council was raised by member Milind Narvekar.
“The Maharashtra Police Co-operative Housing Federation is overseeing the project under a leasing agreement for a housing redevelopment plan. This project adheres to the new Development Control Regulations (DCR), which will provide 1,071 flats. The plot within this layout is designated as a Recreational Ground, and Minister Desai clarified that this playground will remain accessible to the public,” he noted.