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Mumbai, one of India’s most vital metropolises, is renowned for its significant real estate market. As one of the world’s most expensive cities in terms of property, Mumbai is where the average person dreams of owning a home. Thousands arrive in Mumbai daily, seeking opportunities, and the city embraces them all. Known as the “City of Dreams,” it offers work and sustenance to those who come here. Over the years, Mumbai has welcomed citizens nationwide, providing shelter and livelihood.

The Maharashtra Housing and Area Development Authority (MHADA) has played a crucial role in offering affordable housing to the city’s residents. Despite Mumbai’s robust economy, skilled workforce, and abundant resources, the demand for housing remains a challenge. Amidst difficulties like the city’s growing population, limited geographical boundaries, and infrastructure constraints, vertical growth through redevelopment is the most feasible solution to increase the housing stock. Today, MHADA continues to be a major player in addressing housing shortages in Maharashtra, with ongoing projects that aim to improve living conditions and modernise urban infrastructure. MHADA’s efforts have significantly contributed to the development of housing and urban infrastructure in Maharashtra, shaping the state’s urban landscape over the decades.

The nation’s oldest and largest Housing Authority has a glorious past. In the post-independence era, the state faced an acute housing shortage due to various factors, including industrialisation, urbanisation, influx of migrants after the partition and many more. Therefore, under the Bombay Housing Act of 1948, the Bombay Housing Board, India’s first housing board, was established on January 15, 1949. On May 1, 1960, the State of Maharashtra was formed, and the Bombay Housing Board was transformed into the Maharashtra Housing Board. During this period, several boards worked separately, contributing to the cause of housing. In 1971, the Repair and Reconstruction Board was established to look after South Mumbai’s old and dilapidated buildings. Later, in 1974, the Slum Improvement Board was established to provide basic amenities to the slum dwellers.

However, under the Maharashtra Housing and Area Development Act of 1976, the state government consolidated various housing boards under one umbrella. It established the Maharashtra Housing and Area Development Authority (MHADA) on December 5, 1977. Over the last seventy-five years, MHADA has constructed nine lakh dwelling units across Maharashtra, drawing on its extensive experience, financial strength, technical expertise, and dedicated workforce. This article reflects on MHADA’s journey in housing and its prospects. As MHADA approaches its 76th year, it faces modern challenges, including rapid urbanisation, a growing population, land scarcity, and the demands of high-rise buildings. Despite these hurdles, MHADA’s housing efforts remain commendable. Recent state government policies have further propelled MHADA’s mission, providing inspiration and direction.

As the coordinating agency for the state government’s housing sector, MHADA has established itself as India’s most significant housing institution, providing nearly nine lakh homes through various schemes in the state. Of these, around 2.25 lakh homes are in Mumbai. The city’s real estate market faces significant challenges in supplying affordable housing, influenced by factors like land availability, construction costs, and planning regulations. To address this, the government has introduced subsidies, tax, and FSI incentives, prioritising MHADA’s efforts to make homeownership accessible to the common man.

Being the Government agency, MHADA had the land bank provided by the state. However, over the period, this land bank has almost been exhausted. Amidst such a scenario, Redevelopment is seen as the best solution for balancing the rising demand for housing with the city’s limited space. Recent government amendments to the Development Control Regulations (DCR) have paved the way for the stalled redevelopment of MHADA colonies. MHADA oversees 114 layouts, of which 56 are very old and urgently need rehabilitation. The new government policy on FSI in Rule 33(5) is expected to facilitate the redevelopment of around 2.25 lakh houses to realise their dream of owning larger homes in the next 15-20 years and potentially creating six lakh additional houses.

The government has granted MHADA planning authority to expedite redevelopment projects and effectively implement the Pradhan Mantri Awas Yojana (PMAY). This will streamline the process of obtaining various construction permits under one roof, saving time. MHADA has established three separate units at its headquarters for layout approvals, building permissions, and PMAY-related proposals.

MHADA is actively working on the redevelopment projects of its old housing colonies, including Patra Chawl, Motilal Nagar, GTB Nagar (Punjabi Colony), and Abhudya Nagar on a cluster model. Bandra Reclamation and Adarsh Nagar are in the pipeline for cluster approval. The Samta Nagar redevelopment project in Kandivali is equally notable. MHADA has issued offer letters for 1,128 redevelopment schemes and 49 offer letters for self-redevelopment under 33(5) in the 114 layouts under MHADA. Grant of FSI of 3 for plots below 4,000 square meters and FSI of 4 for plots above 4,000 square meters abetting an 18-meter-wide DP road has given an impetus to proposals for redevelopment.

The central government’s commitment to housing for all is realised through PMAY as part of the celebrations marking 75 years of India’s independence. As the state-level mission directorate for PMAY (Urban) in Maharashtra, MHADA has planned 12,76,902 homes under various components. So far, 4,27,357 housing units have been approved under 1,589 projects across the state. Additionally, 6,25,050 beneficiaries have availed themselves of the Credit Linked Subsidy Scheme under PMAY. Maharashtra has emerged as a leader in implementing PMAY (Urban) nationwide.

The Maharashtra government has granted MHADA the “planning authority” status for the 114 layouts, which will expedite the city’s redevelopment projects and effectively implement the Pradhan Mantri Awas Yojana (PMAY).

The BDD Chawl redevelopment project is one of the state government’s most significant initiatives. Spread over approximately 92 acres, the BDD Chawl redevelopment project is set to become the most significant urban renewal project in the country—the historic chawls at Worli, Naigaon, and N.M. Joshi Marg is soon to be transformed into modern residences. Through this redevelopment project, around 16,000 families who have lived in 160-square-foot rooms for generations will receive accessible, modern 2-BHK apartments of 500 square feet. The government aims to complete the redevelopment of these centrally located chawls in Mumbai within the next seven years. Currently, there are 3,344 tenements in Naigaon, 2,560 in N.M. Joshi Marg and 9,680 in Worli. The government has also decided that MHADA will maintain the redeveloped buildings for 12 years. Tenants in BDD Chawls are temporarily relocated to transition camps as part of the rehabilitation process.

The recent amendments in sections 79(A) and 91(A) strengthened MHADA. It would streamline and enhance the effectiveness of MHADA’s work on redeveloping old, dilapidated, and cessed buildings, thereby avoiding massive loss of life and property. The redevelopment of dilapidated cess buildings in Mumbai’s island city is a pressing issue. Approximately 13,000 old and dilapidated cess buildings exist in the island city. It would streamline and enhance the effectiveness of MHADA’s work on redeveloping old, dilapidated, and cess buildings, thereby avoiding colossal loss of life and property. To date, 4,340 cess buildings having 82,277 tenants have been issued NOC under 33(7).

In Mumbai, an island city, cluster development is a strategic approach to urban planning that addresses the challenges of high-density areas like South Mumbai, providing a framework for sustainable, efficient, and organised growth.

The government’s significant step in this direction is redeveloping buildings in Kamathipura. The “Urban Village Kamathipura Township” redevelopment project is being implemented by MHADA’s Building Repairs and Reconstruction Board. The cluster redevelopment of old and worn cess and non-cess buildings and plots in Kamathipura, South Mumbai, will be carried out under Regulation 33(9) of the Development Control and Promotion Regulations 2034. Implementing cluster development projects will facilitate the integration of urban planning, infrastructure, and land use.

Yet, in another redevelopment, the 66 buildings constructed under the Prime Minister Grant Project (PMGP) in the 1980s have become extremely dilapidated and dangerous. The government’s supportive policies have revitalized the PMGP project by permitting redevelopment under 33(7). The process for redeveloping the Poonam Nagar project at Jogeshwari is expected to set a new standard. In addition, the redevelopment of 388 RT buildings under 33(24) will give these dilapidated buildings a new lease of life.

Maharashtra is the only state in India that has provided rightful shelter to workers from closed mills. MHADA has conducted two campaigns to collect information on mill workers, receiving 1,74,172 applications. Since 2013, approximately 15,490 flats have been allotted to beneficiaries through various lotteries. In response to a time-bound MHADA campaign to verify the eligibility of 1,50,484 registered mill workers and their heirs who were unsuccessful in the previous lotteries, MHADA received 1,12,142 applications offline and online. Of these, the eligibility of 98,840 applicants has been confirmed, and the remaining applications are being scrutinised for further action.

Also Read | MHADA’s Multi-Pronged Approach to Modernize Mumbai’s Housing Infrastructure

As a people-centric initiative of the government, MHADA has strongly emphasised transparent administration alongside housing construction. MHADA was the first organisation in the state to implement the Maharashtra Public Service Guarantee Act. Services provided to citizens, such as the transfer of tenements, regularisation of tenements/plots, various noobjection certificates, permission for the sale of tenements/ plots, and the provision of map copies, are handled by the “Mitra” cell. From submitting files to receiving final decisions, all services have been provided to citizens through the “Mitra” system’s one-window scheme. MHADA has also developed a new mobile app called “MHADA Mitra” for citizens. Through this app, citizens can now track the status of their files.

Besides, Since MHADA is a public-centric organisation with ordinary citizens at its core, it has initiated a “Lokshahi Divas” this year to provide a platform for people to voice their complaints. Through this initiative, efforts are being made to take prompt decisions and justice on pending issues many citizens face.

Additionally, considering the challenges of the modern technological era, MHADA has updated its website. This updated website is more user-friendly, simple, and accessible, keeping citizens at the centre.

Moving away from the traditional manual lottery process, MHADA introduced a transparent computerised lottery system to sell flats in 2000. Since last year, MHADA has adopted the IHLMS 2.0 (Integrated Housing Lottery Management System) to sell flats. This new computerised system is easy to use, secure, and entirely online, eliminating human intervention. The computerised system facilitates registration for housing lotteries, completion and verification of documents, and other processes such as applying for lotteries, depositing earnest money for the desired flat, and making payments after winning the flat. All these processes are carried out online, and only the successful applicant needs to visit the project site to take possession of the flat. The transparency of the lottery process has earned Maharashtra’s trust. It’s a matter of pride that MHADA has successfully taken the computerised lottery draw for nearly 50,000 houses in the last five years through its regional boards.

Reviewing MHADA’s work, it is evident that it will play a significant role in transforming Mumbai’s skyline and enabling the state government to meet its housing targets.

Insights shared by: Shri Sanjeev Jaiswal, IAS, Vice President and Chief Executive Officer, Maharashtra Housing and Area Development Authority (MHADA)

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