MHADA Takes Control of Stalled Redevelopment Projects in Mumbai
The Maharashtra Housing and Area Development Authority (MHADA) has recently taken a significant step towards tackling the issue of stalled redevelopment projects in Mumbai. In a proactive move, MHADA has issued approximately 1,200 notices to various developers and housing societies in the city, urging them to revive projects that have been stuck for various reasons.
Amendment to the Maharashtra Housing and Area Development Act of 1976 has granted MHADA the authority to independently oversee redevelopment on its own plots when developers and residents fail to propose any plans for residential building redevelopment. This amendment places MHADA at the forefront of solving the issue of stalled projects, irrespective of the reasons behind the lack of progress, be it ongoing disputes or litigations.
According to a report by Hindustan Times, Sanjeev Jaiswal, the Vice President and CEO of MHADA, spoke about the significance of this change during the recent CREDAI-MCHI Redeveloping Mumbai exhibition held at the Bandra Kurla Complex. Jaiswal stated that MHADA has already served around 850 notices under Section 79A, about 300 notices under Section 79B, and an additional 70 to 80 notices under Section 91A.
Empowering MHADA: Section 79A, 79B, and 91A
MHADA now possesses the authority to exercise a substantial level of control over stalled projects through different sections of the amended act.
Under Section 79A, MHADA is empowered to notify the owner or landlord of a cessed building and demand them to submit a redevelopment proposal. The proposal must include a consent of at least 51% of the building’s residents within six months of receiving the notice.
In case the owner fails to submit a proposal under Section 79A, Section 79B comes into play. Under this section, the building’s occupants or tenants are given the responsibility of presenting their own redevelopment proposal within the same six-month timeframe.
Section 91A addresses projects that have been incomplete, delayed, or that have not commenced within three years of receiving a No Objection Certificate (NOC). MHADA can issue notices to such projects, demanding an explanation for the lack of progress.
Addressing Concerns and Streamlining Processes
Sanjeev Jaiswal highlighted a concern regarding the real estate industry attempting to undermine redevelopment efforts by offering residents more incentives than those provided by the initially onboarded developers. Such instances have led to conflicts and further delays in project completion.
Jaiswal emphasized the importance of unity and collaboration to prevent litigation and weaken structures. He urged housing societies to choose developers based on merit rather than just promising larger carpet areas or greater corpus funds. This strategy aims to create a more harmonious environment where all stakeholders work towards a common goal of completing the project efficiently for the benefit of residents.
It is estimated that South Mumbai alone has over 14,000 cessed buildings, with more than 13,000 still awaiting redevelopment. To foster a streamlined redevelopment process, the government is urging residents to consider cluster redevelopment rather than standalone projects. Cluster redevelopment enables more efficient and comprehensive efforts, intending to improve the overall housing situation in Mumbai while benefiting its residents.
As MHADA takes control of stalled redevelopment projects in Mumbai and works towards revitalizing them, it brings hope to many residents who have been eagerly waiting for their long-overdue homes. The outcome of these efforts will significantly impact the city’s real estate landscape, offering a brighter and more sustainable future.
