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When considering the ageing structures on Mumbai’s island city, the focus often shifts to the old, dilapidated buildings and the challenges associated with their redevelopment. Mumbai, known as the “City of Dreams” and the financial capital of India, is now on the brink of significant transformation. This bustling city, with its fastpaced lifestyle, cultural diversity, and endless opportunities, is set to undergo a major overhaul thanks to recent amendments to the MHADA Act.

The Mumbai Building Repairs and Reconstruction Board, a division of MHADA, oversees approximately 13,000 old cess buildings on Mumbai’s island city. Of these, around 12,000 buildings have existed since before 1940. Each monsoon, the risk of these buildings collapsing increases, raising concerns about the safety of residents. Given the advanced age of these buildings, the issue of their redevelopment has become a critical matter. With nearly 90% of these structures deemed dangerous and some even classified as extremely hazardous, redevelopment is an urgent necessity. The recent amendments to the MHADA Act, approved by the President of India in December 2022, have empowered MHADA to address these challenges more effectively. These legal changes are expected to accelerate the redevelopment of perilous buildings in south Mumbai, thereby significantly reducing the potential for loss of life and property due to mishaps like wall collapse or building collapses.

Background
In 1940, due to the Rent Control Act approved by the government, the rent for properties was frozen at the 1940 level. As a result, building owners did not receive adequate income, leading them to neglect the maintenance and repair of their buildings. Additionally, the belief that preservation and repair were solely the owner’s responsibility, combined with financial difficulties, caused tenants to neglect these duties as well. The increasing age of the buildings, heavy rainfall, and Mumbai’s salty climate all contributed to the significant deterioration and eventual collapse of many buildings. Consequently, this issue led to not only financial losses but also a considerable loss of life.

To address this issue, the government, following the recommendations of the Bedekar Committee’s study group appointed in 1968, accepted the responsibility for the repair and reconstruction of approximately 19,642 buildings on Mumbai Island. To carry out this task, the Mumbai Building Repairs and Reconstruction Act 1969 was passed, leading to the establishment of the Mumbai Building Repairs and Reconstruction Board in 1971. Subsequently, a cess was imposed on these 19,642 buildings, and they were classified according to Section 84(1) of the MHAD Act of 1976.

In 1976, the Maharashtra Housing and Area Development Act was approved. Under Section 18 of this Act, the Mumbai Housing Board was established in December 1977 as a component of MHADA, and the program for the repair and reconstruction of buildings continued under Chapters 8 and 8A of the Act. Later, due to the diverse responsibilities of the Mumbai Housing Board, it was divided into three boards. Since November 1992, the responsibility for the repair and reconstruction of old and dilapidated buildings has been assigned to the newly established Mumbai Building Repair and Reconstruction Board. This board was entrusted with the implementation of structural repair and reconstruction schemes for buildings receiving the cess.

As a result of ongoing efforts, some of the cess buildings have collapsed, others have been demolished due to severe dilapidation, and a few have undergone redevelopment. However, approximately 13,309 cess buildings remain in existence, all in dire need of redevelopment. To facilitate this process, amendments to the MHAD Act were necessary, resulting in the introduction of new sections, namely 77, 79(A), and 91(A).

New Provisions in the MHADA Act
Over the past few decades, the redevelopment of old buildings on Mumbai’s island city has remained a critical issue. In addition to the challenge of completing stalled or incomplete redevelopment projects, the lack of appropriate legal provisions has posed significant hurdles for the state government. To address these challenges, a committee of eight legislators was established in October 2016. Based on the committee’s recommendations, new sections were incorporated into the MHAD Act, empowering MHADA to take over stalled and incomplete projects.

Key Amendments:

• Section 77: Empower the Building Repairs and Reconstruction Board to take over incomplete and stalled redevelopment projects.
• Section 79(A): Relates to the redevelopment of buildings declared dangerous under Section 354 of the Mumbai Municipal Corporation (MMC) Act, reducing the consent requirement from 70% to 51% for the redevelopment to proceed. It also addresses issues related to land acquisition and the temporary and permanent rehabilitation of tenants.
• Section 91(A): Provides MHADA with the authority to acquire and complete redevelopment projects abandoned by developers.

New amendment in section 79/A
To give impetus to the redevelopment and thereby avoid losses to life and property, the recent amendment to section 79-A of the MHAD act has played a vital role. To bring clarity and transparency in the redevelopment process of society building and for the smooth functioning of society, The new amendment in 79/A mandates compulsory redevelopment for cessed buildings declared dangerous by the authorities. The amendment act allows the owners of the building to initiate the process of redevelopment within 3 months from the date of receipt of the notice. In the event the redevelopment process is not initiated within 3 months, the repair and reconstruction board on MHADA will issue another notice to the owners of the Building, allowing them to submit a redevelopment proposal within 6 months from the date of receipt of the notice. The redevelopment proposal shall be accompanied by the consent of 51% of the occupants or tenants in the Building. However, suppose the owners fail to do so. In that case, the proposed co-operative housing society of tenants or occupants will be entitled to submit a redevelopment proposal within the next 6 months with the consent of 51% of the occupants or tenants in the Building.

In the event the tenants or occupants also fail to make a proposal, MHADA will undertake redevelopment by acquiring the property. Such is the impact of the new amendment; the repair board has issued 848 notices to the owners of the buildings under section 79A. In response, the Board has received 42 redevelopment proposals from the owners of the buildings. At the same time, the Board has issued 274 notices to the tenants. In response, 09 redevelopment proposals have been received from the tenants. Also, the Board has successfully acquired 6 proposals.

Further, the Amendment Act provides that once the building is redeveloped by the proposed co-operative housing society or MHADA, the owner will get compensation at the rate of 25% of the amount of the ready reckoner rates or 15% of the built-up area of sale component determined as per the ready reckoner rates, whichever is higher.

Section 91 A Amendment Accelerating Stalled Projects
To give justice to the tenants of the stalled redeveloped projects, an amendment in section 91/A of the MHADA Act turned out to be a boon. Section 91/A, allows the state to acquire the stalled redevelopment projects and complete them. Mention that after the NOC for redevelopment is issued to the cessed building, and the cessed building is demolished, but the redevelopment project is stalled for more than three years and the tenants are not given rent by the developers, then the said section comes into force. The section 91A allows the board to issue notices to the developers to restart the projects. So far, the repair board has issued 61 notices to the developers, of which 12 redevelopment projects have been restarted. In some cases, the developers have sought time to restart the time, and in others, the board has initiated the process of acquiring the projects.

This approach is key to addressing Mumbai’s housing shortage while upgrading the city’s ageing housing stock. MHADA’s redevelopment efforts are vital in shaping the future of Mumbai’s housing amidst rising population pressures.

Redevelopment in South Mumbai
In South Mumbai, MHADA faces problems in carrying out redevelopment projects. There are around 13,000 cessed buildings, of which approximately 12,000 were constructed before 1940. Many of these structures, particularly those under MHADA’s jurisdiction, are in a difficult state, underscoring the urgent need for redevelopment. Replacing these unsafe buildings with modern, compliant housing is a top priority for MHADA. In SOBO, the redevelopment schemes are usually taken as regulations 33(7) of the DCR, while the 33/9 is taken for the cluster redevelopment.

MHADA also plays a critical role in protecting the rights of tenants living in these old buildings. The authority ensures that tenants receive their rightful share in the redeveloped properties, often in the form of ownership with increased carpet area. Acting as a mediator between residents and developers, MHADA works to safeguard the interests of the tenants, ensuring they are not sidelined in the redevelopment process. The redevelopment of cessed buildings often creates a surplus of housing units, which MHADA allocates to affordable housing, central to its mission of serving Mumbai’s economically weaker sections.

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To accelerate these projects, MHADA has introduced initiatives like the Cluster Redevelopment Policy, which consolidates adjacent old buildings into a single project for more efficient planning and infrastructure. The first ever cluster redevelopment project taken up Is the Saifi Burhani redevelopment project at Bhendi Bazar. At the same time, the state government has entrusted the task of the city’s biggest cluster redevelopment of historical Kamathipura with the Repair and Reconstruction Board on MHADA. Spread over 27.59 acres of land in south Mumbai, the project “The New Urban Village KAmathipura” will give a facelift to the Island city’s skyline.

A New Era for Mumbai’s Skyline
The implementation of these new provisions in the MHADA Act is expected to reshape Mumbai’s skyline. The amendments will enable the long-awaited redevelopment of cess buildings and stalled projects, bringing the dream of homeownership closer to reality for many residents.

Views expressed by – Shri Milind Shambharakar, Chief Officer, Mumbai Repairs & Reconstruction Board

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