Mumbai News: MHADA To Issue Redevelopment NOCs For Old Cessed Buildings Within 6 Weeks Under Right To Service Act

The Maharashtra Housing and Area Development Authority (MHADA), Sanjeev Jaiswal, Vice President and Chief Executive Officer, announced a decision to fast-track old cessed buildings redevelopment approvals received from tenants under 79A(1b).

Under the new directive, redevelopment proposals of old cessed buildings submitted under Section 79A (1a)or 79A(1b) accompanied by 51% consent of residents receive a No Objection Certificate (NOC) within six weeks. This approval process will now be governed under the Right to Service Act. In the event of any delay beyond the stipulated period, the NOC will be treated as deemed approved. The announcement was made at the second redevelopment conference and Investors summit on Wednesday at Bandra.

He furthermore stated that if all stakeholders honour their commitment, the goal of constructing 8 lakh affordable houses in the Mumbai Metropolitan Region (MMR) over the next five years can be met. MHADA’s projected investment stands at Rs 6,609 crore, with developers contributing an estimated ₹1.28 lakh crore. Redevelopment projects at GTB Nagar, Abhyudaya Nagar, Motilal Nagar, and BDD Chawls were highlighted as immediate priorities.

Key policy reforms discussed at the summit include the provision of FSI 3.00 or rehab + incentive ranging from 75 to 100% FSI for both cessed and non-cessed structures and the use of surplus tenements received in 33(9) for transit accommodation without the need for prior offers to MCGM or MMRDA. Premiums on clubbed schemes are to be calculated based on the smaller plot area, and financial relief measures such as a 13% reduction in interest rates, installment-based premium payments, and GST relaxation for rehabilitation components were also proposed.

MHADA will act as the nodal agency for affordable rental housing. Proposals include a Rental Housing Index, 100% income tax exemption on rental income for ten years, and use of unused MHADA land for rental projects. Inclusive housing provisions were also reviewed, with fixed tenement costs at 125% of DSR and land management protocols ensuring plots below 4000 sq.m. are not subdivided.

The MMR Growth Hub initiative aims to develop 7.82 lakh housing units, based on a 60% sale and 40% free rehabilitation model, with an average cost of ₹50 lakh per unit. Over approx 13,000 cessed buildings have been identified for redevelopment.