MUMBAI: Two years after the state amended the MHADA Act to fast-track the redevelopment of dilapidated cessed and non-cessed buildings in the island city, it has started getting results.
In December 2022, Section 91 (a) was introduced under the Act, to drive the redevelopment process. Of the 91 dilapidated buildings whose redevelopment had stalled, 43 projects have restarted in the last year, while five others are expected to begin soon. Eight such projects have been acquired by the Maharashtra Housing and Area Development Authority (MHADA) for redevelopment. Contractors have been appointed after a high-power committee under the state housing secretary gave the green signal for the acquisition recently.
The island city has more than 13,091 cessed and non-cessed buildings. Most of them are over five decades old and many are dilapidated and owned by private landlords. To facilitate their redevelopment, Section 79 (a) was also introduced under the Act, allowing landlords and tenants to redevelop these structures. MHADA would be allowed to acquire and redevelop these buildings only if this process failed.
However, in June, the Bombay High Court rapped MHADA for alleged irregularities in issuing these notices. The court called MHADA’s move arbitrary and a violation of the constitutional rights of owners and tenants as MHADA had not followed due process.
On the buildings whose redevelopment has resumed, an official from the housing department, said, “Work has restarted out of fear that the properties will be acquired by MHADA.”
The amendment also includes a provision for compensation of 25% of the Ready Reckoner rate or 15% of the built-up area of the saleable component to the landlord as compensation of the land cost.