President Draupadi Murmu has approved the amendment in the Maharashtra Housing and Area Development Authority (MHADA) Act, 1976. While the state government had passed a bill amending the MHADA Act 1976 in 2020, the final nod from the President was awaited.
The amendment means preference will now be given to building owners/ tenants to submit the redevelopment proposal once a building has been demarcated as ‘dangerous for living’ by municipal bodies.
See also: 388 MHADA buildings in South Mumbai to be redeveloped
Under the amendment, owners of these buildings will be given 6 months to submit a redevelopment proposal that has consent from 51% tenants. If they fail to do so, tenants will get a chance to submit a redevelopment proposal that has consent from 51% tenants within 6 months. In case tenants also fail to make a proposal, MHADA will take ownership of the project.
Once redevelopment is over, the owner will get compensation of 25% of the ready reckoner (RR) rate or 15% of built-up area of sale component, whatever is higher.
With this amendment in place, around 56 buildings in Mumbai would get benefitted. These buildings were continuing to pay cess despite the project being stuck in redevelopment.
See also: MHADA Lottery 2023: Online application form, registration date and news
With 16+ years of experience in various sectors, of which more than ten years in real estate, Anuradha Ramamirtham excels in tracking property trends and simplifying housing-related topics such as Rera, housing lottery, etc. Her diverse background includes roles at Times Property, Tech Target India, Indiantelevision.com and ITNation. Anuradha holds a PG Diploma degree in Journalism from KC College and has done BSc (IT) from SIES. In her leisure time, she enjoys singing and travelling.
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