Maharashtra Government Proposes Key Amendments to Boost MHADA Redevelopment

By Sana Khan
Editor, Realty Quarter

The Maharashtra government has proposed significant amendments to the Development Control and Promotion Regulations (DCPR) 2034 to enhance the financial feasibility of redevelopment projects undertaken under the Maharashtra Housing and Area Development Authority (MHADA).

Extension of Fungible Area Benefits

Currently, Regulation 31(3) permits builders to obtain additional fungible construction area, free of premium, only on the existing built-up area of a project. The government now plans to extend this benefit to the rehabilitation area as well. This change will allow developers to use extra construction space while rehousing existing tenants, thereby making redevelopment projects more practical and financially sustainable.

Clarification on FSI Calculation

Under Regulation 33(5), MHADA presently allows an additional construction area of up to 3.00 Floor Space Index (FSI) on payment of a premium. The proposed amendment specifies that this extra FSI will now be calculated on the total rehabilitation entitlement, not merely on the existing area. This measure is aimed at ensuring a more efficient balance between the rehabilitation and sale components of projects.

Objective of the Amendments

According to the Urban Development Department (UDD), these changes are intended to improve the viability of redevelopment initiatives, especially those involving large and ageing MHADA layouts, where execution challenges and financial constraints often delay progress.

Public Consultation Invited

The State Urban Development Department has invited objections and suggestions from the public on the proposed modifications to Regulation 31(3) and sub-clause 2.1(C) of Regulation 33(5) under Section 37(1AA) of the Maharashtra Regional and Town Planning (MRTP) Act, 1966. Citizens, developers, and stakeholders may submit their feedback within one month from the date of notification.

Industry Perspective

According to industry experts, the move streamlines MHADA redevelopment economics by “ring-fencing tenant entitlement from premium burdens and aligning fungible benefits with real rehabilitation needs.” The amendments are expected to unlock stalled and complex MHADA colony redevelopments across Mumbai, particularly those involving large layouts where ageing stock requires replacement at scale.