In a significant move to provide relief to tenants of old and dangerous buildings, the Maharashtra Housing and Area Development Authority (MHADA) has decided to reduce the ready reckoner (RR) charges for additional area allotted to eligible tenants. The new policy will charge tenants 100% of the RR rate, down from the previous 110%, for any additional area allotted beyond their residential units' original or permissible area.
This adjustment is expected to ease the financial burden on tenants of old cessed buildings, many of whom have long faced challenges with unsafe living conditions and slow-paced redevelopment.
Improved Benefits for Ground Floor Tenants
Jaiswal also announced that tenants living on the ground floors of old buildings, who were previously excluded from eligibility for redevelopment schemes, will now be added to the MBRRB’s master list and will receive the same benefits as other tenants. This move is intended to address the long-standing uncertainties faced by ground-floor tenants in buildings where only upper floors have been demolished.
The new policy is part of a broader effort by MHADA to provide better compensation and housing opportunities to residents of old cessed buildings. Jaiswal emphasised that the initiative would ensure more equitable treatment for all residents and provide much-needed relief to those who have been waiting for proper housing solutions.
Ongoing Surveys and New Lottery System
MHADA is currently conducting a biometric survey of transit camp residents to categorise them into three groups—A, B, and C—based on their eligibility and current living conditions. The residents in Category A, whose original buildings cannot be rebuilt, will be given preference when added to the master list.
Additionally, the CEO of MHADA has instructed that if the redevelopment of dangerous cessed buildings stalls, affected tenants should be given the option to be added to the master list for alternative housing. This includes tenants living in buildings acquired by MHADA after the issuance of a notice under Section 91(A).
A New Lottery for Redevelopment of Cessed Buildings
In another significant development, Jaiswal directed that a new lottery be conducted within the next six months to determine eligibility for permanent homes for 100 tenants or residents from old cessed buildings. This new lottery will be organised based on tenement sizes and will aim to address the backlog of cases where redevelopment has been delayed.
The December 2023 lottery had already been organised in five categories based on the size of the tenement, ranging from smaller units (300–316 sq ft) to larger ones (701–753 sq ft). The lottery was a key step in addressing the housing needs of residents in dilapidated and unsafe buildings.
Conclusion
MHADA’s decision to reduce RR charges for additional areas and provide more clarity and fairness in the redevelopment of old cessed buildings is a significant step towards resolving the housing crisis for Mumbai’s most vulnerable residents. With continued focus on improving compensation mechanisms and offering alternative housing options, the new policy promises to bring greater relief and a more equitable housing solution to those affected by Mumbai’s ageing housing stock.