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Maharashtra govt announces redevelopment policy for tenanted buildings in Mumbai

The Maharashtra government has announced a reconstruction and redevelopment policy for authorised tenanted buildings in Mumbai city and suburbs. This move comes after the recent building collapses which killed 50 people.

Ashwini Priolker


The Maharashtra government has announced a reconstruction and redevelopment policy for authorised tenanted buildings in Mumbai city and suburbs. This move comes in the wake of recent building collapses which took the lives of 50 people.

The new policy whose notification is now published by the government is going to benefit the tenanted buildings in the suburbs and non-cessed tenanted buildings in the island city.


According to the Brihanmumbai Municipal Corporation (BMC), there are over 600 dilapidated buildings in Mumbai which have been declared as dangerous structures. The residents, especially those belonging to the tenanted buildings, continue to reside in these dilapidated buildings as landlords do not initiate any redevelopment work due to lack of any incentives.

The new policy seems to address this concern. Here are some of the key features of the policy.

  • Tenants who have occupied the place before June 13, 1996 are covered under this policy.

  • Consent of 70% tenants is required to take up redevelopment of old buildings.

  • Each tenant will be given a carpet area occupied by him/her in the old building with the minimum area of 300 sq ft and maximum area up to 753 sq ft.

  • Developers will get 50 percent incentive floor space index (FSI) for redevelopment of the building.

  • The landlords should start the construction of the building within one year from the date of the demolition and complete it within a period of five years.

  • Landlords will have to provide alternate accommodation for the tenants during the time of redevelopment.

  • A corpus fund should be created by the landlord which will take care of the maintenance of the building for a period of 10 years.

The new policy has come as a big relief to the people living in the old tenanted buildings. However, there are some concerns that need to be addressed.

“This policy will definitely benefit thousands of people living in the tenanted buildings. We will be keenly watching the implementation of the policy. Also, there is a question about the ownership of the flat. Will the landlords transfer the ownership rights to the tenants post redevelopment is something that needs to be made clear," says Vijay Samant, Project Management Consultant.

The developer community has also welcomed the announcement of this new policy. “This is a very good move by the government. However, such policies alone can’t help solve the problem of old buildings in the city.  Any buildings which is above 30 years should be deemed to be dilapidated and there is a need for a cluster redevelopment policy in the suburbs as well," says Nayan Shah, MD, Mayfair Housing.

The state government or the Municipal Corporation is expected to soon issue guidelines for the better implementation of the policy.
First Published on Sep 12, 2017 04:23 pm