Mhada will reconstruct Patra Chawl in Mumbai, and tenants would receive rent arrears as well.

The Maharashtra Housing Area Development Authority (Mhada) is set to legally take over the reconstruction of Goregaon West’s Siddharth Nagar (Patra) chawl.

The state housing department issued a government resolution (GR) ordering Mhada to finish the halted redevelopment and deliver over dwellings to the 672 tenants and 306 residents who had won allotments under the authority’s lottery method. Rent arrears will also be paid to the tenants.

The GR also instructs Mhada to use all legal means to ensure that it receives its rightful part of the renovated territory. Siddharth Nagar spans 47 acres, and the developer, Guruashish, is accused of selling parcels of land to nine other developers without Mhada’s approval. After the comptroller and auditor general (CAG) pointed out the differences in calculating the real area, the case was taken to court. The case is currently being heard by the Bombay High Court and the National Company Law Appellate Tribunal (NCLAT).

The government approved the Johny Joseph Committee’s recommendation, allowing Mhada to sell flats at market rates as a one-time concession to recover redevelopment costs. Mhada will also be granted a floor space index of 4 for the undeveloped area.

The housing department has issued a new GR requiring Mhada to acquire state clearance before issuing a letter of intent to a developer for any of its plans. “When a project is stalled for years, it is often the residents who endure the brunt of the consequences. As a result, in order to safeguard public good, Mhada will need to present a thorough plan to the government, get permission, and only then issue the NOC and project approvals,” it says.