Mumbai: MHADA Sends 1,200 Notices To Developers, Housing Society In Bid To Push Redevelopment Projects

Mumbai: The Maharashtra Housing and Area Development Authority (MHADA) has issued approximately 1,200 notices to various developers and housing societies in Mumbai as part of its initiative to take control of stalled redevelopment projects on their properties.

This move follows an amendment to the Maharashtra Housing and Area Development Act of 1976, which granted MHADA the authority to independently oversee redevelopment on its plots when developers and residents fail to propose any plans for residential building redevelopment, regardless of the reasons for the failure, such as disputes or ongoing litigations.

According to a report by Hindustan Times, Sanjeev Jaiswal, the vice president and CEO of MHADA, highlighted the importance of this change while speaking at the CREDAI-MCHI Redeveloping Mumbai exhibition at the Bandra Kurla Complex. He reported that since the amendment, MHADA has served around 850 notices under Section 79(A), about 300 notices under Section 79(B), and an additional 70 to 80 notices under Section 91(A).

Section 79(A) empowers MHADA to notify the owner or landlord of a cessed building, mandating them to submit a redevelopment proposal that includes at least 51% resident consent within six months of receiving the notice. If the owner fails to submit a proposal under Section 79(B), the building's occupants or tenants are then asked to present their own redevelopment proposal within the same six-month timeframe. Section 91(A) pertains to projects that are incomplete, delayed, or have not commenced within three years of receiving a No Objection Certificate (NOC).

Jaiswal also cautioned the real estate industry against undermining redevelopment efforts by offering residents more incentives than what the onboard developers provide. He noted that in several instances, housing societies have opted for developers who promise larger carpet areas and greater corpus funds, creating conflicts with existing developers. This situation often leads to litigation and further weakens the structure, ultimately harming residents as projects become stalled.

Govt Promoting Cluster Redevelopment

In South Mumbai alone, there are over 14,000 cessed buildings, with more than 13,000 still awaiting redevelopment, according to the report. The state government has issued NOCs for nearly 4,000 of these buildings. To streamline the redevelopment process, the government is encouraging residents to pursue cluster redevelopment rather than standalone projects. This strategy aims to facilitate more efficient and comprehensive redevelopment efforts, ultimately benefiting the residents and improving the overall housing situation in Mumbai.