MHADA to complete stalled redevelopment project in Mumbai’s Goregaon

The state’s cabinet has decided that MHADA would complete the construction and hand over possession of 672 tenements of original chawl residents of the area within three years, and another 306 flats that were allocated in a lottery.

The Maharashtra government has cleared one of Mumbai’s biggest redevelopment projects that has been stalled for years, cheering hundreds of people who have been anxiously waiting for their homes.

It has asked the Maharashtra Housing and Area Devevlopment Authority (MHADA) to fund and complete the Siddarth Nagar Patra Chawl redevelopment project in Mumbai’s Goregon.

The state’s cabinet has decided that MHADA would complete the construction and hand over possession of 672 tenements of original chawl residents of the area within three years, and another 306 flats that were allocated in a lottery.

Maharashtra’s Industries Minister Subhash Desai, who is also the MLA from Goregaon, told Moneycontrol that MHADA’s costs would be covered by commercial use of land in the area, for the higher Floor Space Index (FSI) has been increased.

“We estimated that total expenses MHADA may incur could be in the range of Rs 2,200 crore, and it could generate revenues to the tune of Rs 2,600 crore for all 47 acres. So, MHADA won’t suffer any losses due to this,” he told Moneycontrol.

The project has been mired in disputes and legal trouble. MHADA had entered into a tripartite agreement with HDIL subsidiary Guruashish Constructions and the tenants society in 2008 to provide redeveloped homes to people and commercially use part of the land but the agreement was terminated in 2018 and the state agency filed a police case over alleged irregularities by the company, which went into insolvency four years ago.

The private developers approached the Bombay High Court, which restrained MHADA from coercive action but allowed it to take possession of the rehab tenements. The case is still pending, but last year, the National Company Law Tribunal ordered the liquidation Gurushish Construction.

The delay has hit the 672 tenants of the chawl, the 306 families who won the MHADA lottery for tenements, and 465 home buyers who booked apartments in Meadows, the saleable component of the project.

Some of the private developers who got involved in the project have built highrise towers on the plots but MHADA has refused to give Occupancy Certificates until the rehabilitation task is completed.

The state government reviewed the project in January 2020 but the pandemic came in the way of resolution.

The cabinet also decided to set up a five-member technical committee to work out the construction expenses, the accruing revenues, MHADA dues etc. The committee has been asked to ensure that MHADA does not suffer any losses in the project.

The revival plan also suggested that MHADA sign a Memorandum of Understanding with three private developers who purchased the plots from HDIL and have almost completed the highrises. This may allow the highrises to get Occupancy Certificate and ensure that homebuyers who booked flats also get relief.

The cabinet also tasked MHADA to effectively present its case before the NCLT to ensure that its land is excluded from the liquidation estate.