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At MHADA's second redevelopment conference, CEO Sanjeev Jaiswal unveiled a new fast-track policy for cessed building redevelopment in Mumbai, mandating No Objection Certificate (NOC) approval within six weeks under the Right to Service Act. Delays beyond this period will result in deemed approvals. The plan aims to deliver 8 lakh affordable homes in MMR over five years, backed by MHADA's INR 6,609 crore investment and INR 1.28 lakh crore from developers. Key reforms include higher FSI, automatic transit housing approvals, reduced interest rates, GST relief, and rental housing incentives. With over 13,000 cessed buildings targeted, the initiative signals a major push in Mumbai's urban renewal.
During the Maharashtra Housing and Area Development Authority's (MHADA) second redevelopment conference and Investors summit, Mr. Sanjeev Jaiswal, IAS, the CEO of MHADA, outlined an ambitious new policy that will fast-track redevelopment approvals for old cessed buildings. This directive will be governed by the Right to Service Act, ensuring that redevelopment proposals under Section 79A (1a) or 79A(1b) accompanied by at least 51% consent from tenants will be granted a No Objection Certificate (NOC) within six weeks. In cases where delays occur beyond this period, the NOC will be automatically deemed approved. Advertisement
The conference, held at the MIG Club in Bandra (East), saw significant participation from prominent industry leaders such as Mr. Boman R. Irani, President of CREDAI National, Mr. Domnic Romell, President of CREDAI-MCHI, and Dr. Niranjan Hiranandani, Co-Founder of Hiranandani Group. Mr. Jaiswal emphasized that, with the cooperation of all stakeholders, the goal of constructing 8 lakh affordable homes in the Mumbai Metropolitan Region (MMR) in the next five years could be realized. MHADA's projected investment in this initiative is INR 6,609 crore, with developers expected to contribute an estimated INR 1.28 lakh crore.
Among the key policy reforms discussed at the summit were proposals for higher Floor Space Index (FSI), ranging from 75% to 100%, for both cessed and non-cessed structures. Additionally, surplus tenements under Section 33(9) will be used for transit accommodation without needing prior approval from the MCGM or MMRDA. Premiums for clubbed schemes will be calculated based on the smaller plot size. Financial relief measures, including a 13% reduction in interest rates, installment-based premium payments, and GST relaxations on rehabilitation components, were also outlined.
The summit also covered MHADA's role as the nodal agency for affordable rental housing. Proposed reforms include the introduction of a Rental Housing Index, a 100% income tax exemption on rental income for ten years, and the development of rental housing on unused MHADA land. The inclusive housing provisions discussed involved setting fixed costs for tenements at 125% of the Draft Schedule of Rates (DSR) and ensuring that plots below 4000 sq.m. are not subdivided.
A significant focus was placed on the MMR Growth Hub initiative, aimed at creating 7.82 lakh housing units through a model combining 60% sale and 40% free rehabilitation. Over 13,000 cessed buildings have been earmarked for redevelopment, with an estimated cost of INR 50 lakh per unit.
In closing, Mr. Jaiswal urged all stakeholders to commit to timely project completions, ensuring housing delivery as promised, with particular attention to the rehabilitation component.
With significant investments from both MHADA and private developers, the success of this initiative will rely on the commitment of all stakeholders involved. The comprehensive approach, including affordable rental housing provisions and financial relief measures, marks a new chapter in Mumbai's urban development strategy.
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